FREENET AG (FNTN.DE) Stock Fundamental Analysis
FRA:FNTN - Deutsche Boerse Ag - DE000A0Z2ZZ5 - Common Stock - Currency: EUR
Overall FNTN gets a fundamental rating of 7 out of 10. We evaluated FNTN against 6 industry peers in the Wireless Telecommunication Services industry. Both the health and profitability get an excellent rating, making FNTN a very profitable company, without any liquidiy or solvency issues. FNTN is cheap, but on the other hand it scores bad on growth. Finally FNTN also has an excellent dividend rating. These ratings would make FNTN suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
FNTN had positive earnings in the past year.
In the past year FNTN had a positive cash flow from operations.
Each year in the past 5 years FNTN has been profitable.
In the past 5 years FNTN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.38%, FNTN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FNTN has a Return On Equity of 16.57%. This is amongst the best in the industry. FNTN outperforms 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 14.97%, FNTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FNTN is above the industry average of 6.10%.
The 3 year average ROIC (9.45%) for FNTN is below the current ROIC(14.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.57% | ||
| ROIC | 14.97% |
ROA(3y)4.72%
ROA(5y)6.35%
ROE(3y)10.95%
ROE(5y)15.2%
ROIC(3y)9.45%
ROIC(5y)8.82%
1.3 Margins
With a decent Profit Margin value of 9.96%, FNTN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
FNTN's Profit Margin has improved in the last couple of years.
The Operating Margin of FNTN (16.72%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of FNTN has grown nicely.
FNTN's Gross Margin of 40.30% is fine compared to the rest of the industry. FNTN outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of FNTN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 9.96% | ||
| GM | 40.3% |
OM growth 3Y9.56%
OM growth 5Y8.4%
PM growth 3Y8.72%
PM growth 5Y8.88%
GM growth 3Y5.54%
GM growth 5Y5.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FNTN is creating value.
The number of shares outstanding for FNTN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, FNTN has less shares outstanding
FNTN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.79 indicates that FNTN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.79, FNTN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of FNTN is 2.13, which is a good value as it means it would take FNTN, 2.13 years of fcf income to pay off all of its debts.
FNTN's Debt to FCF ratio of 2.13 is amongst the best of the industry. FNTN outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that FNTN is not too dependend on debt financing.
FNTN's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. FNTN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 2.79 |
ROIC/WACC2.35
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.71 indicates that FNTN may have some problems paying its short term obligations.
FNTN's Current ratio of 0.71 is on the low side compared to the rest of the industry. FNTN is outperformed by 66.67% of its industry peers.
FNTN has a Quick Ratio of 0.71. This is a bad value and indicates that FNTN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, FNTN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The current and quick ratio evaluation for FNTN is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
FNTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.24%, which is quite good.
The Earnings Per Share has been growing slightly by 6.90% on average over the past years.
FNTN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.87%.
The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)18.24%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%-12.73%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-5.4%
3.2 Future
The Earnings Per Share is expected to grow by 4.57% on average over the next years.
FNTN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.43% yearly.
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y4.57%
Revenue Next Year2.42%
Revenue Next 2Y2.27%
Revenue Next 3Y2.25%
Revenue Next 5Y1.43%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FNTN is valuated correctly with a Price/Earnings ratio of 14.47.
FNTN's Price/Earnings ratio is rather cheap when compared to the industry. FNTN is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of FNTN to the average of the S&P500 Index (26.19), we can say FNTN is valued slightly cheaper.
A Price/Forward Earnings ratio of 10.98 indicates a reasonable valuation of FNTN.
FNTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. FNTN is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FNTN to the average of the S&P500 Index (22.13), we can say FNTN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FNTN is valued cheaper than 83.33% of the companies in the same industry.
FNTN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNTN is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.57 | ||
| EV/EBITDA | 6.86 |
4.3 Compensation for Growth
FNTN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FNTN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.52
PEG (5Y)2.1
EPS Next 2Y12.83%
EPS Next 3Y11.81%
5. Dividend
5.1 Amount
FNTN has a Yearly Dividend Yield of 5.58%, which is a nice return.
FNTN's Dividend Yield is rather good when compared to the industry average which is at 2.64. FNTN pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, FNTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
5.2 History
The dividend of FNTN has a limited annual growth rate of 2.99%.
Dividend Growth(5Y)2.99%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
The dividend of FNTN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
FRA:FNTN (5/30/2025, 5:35:15 PM)
29.08
+0.1 (+0.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.46B
Analysts78.18
Price Target34.44 (18.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.58% |
Yearly Dividend1.68
Dividend Growth(5Y)2.99%
DP0%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.18%
Min EPS beat(2)6.01%
Max EPS beat(2)10.36%
EPS beat(4)3
Avg EPS beat(4)-8.92%
Min EPS beat(4)-52.66%
Max EPS beat(4)10.36%
EPS beat(8)3
Avg EPS beat(8)-17.36%
EPS beat(12)5
Avg EPS beat(12)-17.75%
EPS beat(16)5
Avg EPS beat(16)-17.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-3.72%
Min Revenue beat(4)-9.63%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.02%
Revenue beat(12)1
Avg Revenue beat(12)-2.32%
Revenue beat(16)1
Avg Revenue beat(16)-2.33%
PT rev (1m)1.6%
PT rev (3m)6.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.74%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.98 | ||
| P/S | 1.4 | ||
| P/FCF | 10.57 | ||
| P/OCF | 9.33 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.86 |
EPS(TTM)2.01
EY6.91%
EPS(NY)2.65
Fwd EY9.11%
FCF(TTM)2.75
FCFY9.46%
OCF(TTM)3.12
OCFY10.72%
SpS20.84
BVpS12.52
TBVpS-0.46
PEG (NY)0.52
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.38% | ||
| ROE | 16.57% | ||
| ROCE | 18.9% | ||
| ROIC | 14.97% | ||
| ROICexc | 16.85% | ||
| ROICexgc | 81.27% | ||
| OM | 16.72% | ||
| PM (TTM) | 9.96% | ||
| GM | 40.3% | ||
| FCFM | 13.2% |
ROA(3y)4.72%
ROA(5y)6.35%
ROE(3y)10.95%
ROE(5y)15.2%
ROIC(3y)9.45%
ROIC(5y)8.82%
ROICexc(3y)10.55%
ROICexc(5y)10.11%
ROICexgc(3y)47.12%
ROICexgc(5y)42.47%
ROCE(3y)11.93%
ROCE(5y)11.14%
ROICexcg growth 3Y26.72%
ROICexcg growth 5Y35.08%
ROICexc growth 3Y17.61%
ROICexc growth 5Y16.61%
OM growth 3Y9.56%
OM growth 5Y8.4%
PM growth 3Y8.72%
PM growth 5Y8.88%
GM growth 3Y5.54%
GM growth 5Y5.22%
F-Score7
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 30.14% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 16.57 | ||
| Cash Conversion | 66.28% | ||
| Profit Quality | 132.5% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.79 |
F-Score7
WACC6.37%
ROIC/WACC2.35
Cap/Depr(3y)23.1%
Cap/Depr(5y)26.26%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.04%
Profit Quality(3y)257.35%
Profit Quality(5y)197.46%
High Growth Momentum
Growth
EPS 1Y (TTM)18.24%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%-12.73%
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y4.57%
Revenue 1Y (TTM)3.87%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-5.4%
Revenue Next Year2.42%
Revenue Next 2Y2.27%
Revenue Next 3Y2.25%
Revenue Next 5Y1.43%
EBIT growth 1Y60.02%
EBIT growth 3Y8.42%
EBIT growth 5Y4.81%
EBIT Next Year53.07%
EBIT Next 3Y17.48%
EBIT Next 5Y10.1%
FCF growth 1Y-5.65%
FCF growth 3Y0.83%
FCF growth 5Y0.49%
OCF growth 1Y-6.86%
OCF growth 3Y0.32%
OCF growth 5Y0.35%