FREENET AG (FNTN.DE) Stock Fundamental Analysis
FRA:FNTN - Deutsche Boerse Ag - DE000A0Z2ZZ5 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to FNTN. FNTN was compared to 6 industry peers in the Wireless Telecommunication Services industry. FNTN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FNTN is valued correctly, but it does not seem to be growing. FNTN also has an excellent dividend rating. With these ratings, FNTN could be worth investigating further for 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.
FNTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.38%, FNTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 16.57%, FNTN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
FNTN's Return On Invested Capital of 14.97% is amongst the best of the industry. FNTN outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FNTN is above the industry average of 6.08%.
The last Return On Invested Capital (14.97%) for FNTN is above the 3 year average (9.45%), which is a sign of increasing profitability.
| 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
FNTN has a better Profit Margin (9.96%) than 66.67% of its industry peers.
FNTN's Profit Margin has improved in the last couple of years.
FNTN's Operating Margin of 16.72% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
FNTN's Operating Margin has improved in the last couple of years.
FNTN has a better Gross Margin (40.30%) than 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.
FNTN has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FNTN has been reduced compared to 5 years ago.
Compared to 1 year ago, FNTN has an improved debt to assets ratio.
2.2 Solvency
FNTN has an Altman-Z score of 3.11. This indicates that FNTN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, FNTN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
FNTN has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as FNTN would need 2.13 years to pay back of all of its debts.
FNTN has a better Debt to FCF ratio (2.13) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that FNTN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.28, FNTN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 3.11 |
ROIC/WACC2.23
WACC6.72%
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.
FNTN has a worse Quick ratio (0.67) than 66.67% of its industry peers.
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
The Earnings Per Share has grown by an impressive 60.00% over the past year.
FNTN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.90% yearly.
FNTN shows a decrease in Revenue. In the last year, the revenue decreased by -5.69%.
The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)60%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%34.15%
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-3.95%
3.2 Future
FNTN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.57% yearly.
The Revenue is expected to grow by 1.43% on average over the next years.
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y4.57%
Revenue Next Year2.5%
Revenue Next 2Y2.33%
Revenue Next 3Y2.35%
Revenue Next 5Y1.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.92, the valuation of FNTN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FNTN indicates a somewhat cheap valuation: FNTN is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FNTN to the average of the S&P500 Index (28.18), we can say FNTN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.02, the valuation of FNTN can be described as correct.
66.67% of the companies in the same industry are more expensive than FNTN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FNTN to the average of the S&P500 Index (20.81), we can say FNTN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FNTN.
Based on the Price/Free Cash Flow ratio, FNTN is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 8.62 |
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.
The excellent profitability rating of FNTN may justify a higher PE ratio.
PEG (NY)0.64
PEG (5Y)2.6
EPS Next 2Y12.83%
EPS Next 3Y11.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.38%, FNTN is a good candidate for dividend investing.
FNTN's Dividend Yield is rather good when compared to the industry average which is at 3.50. FNTN pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, FNTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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 (5/5/2025, 12:33:16 PM)
37.28
0 (0%)
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 Cap4.43B
Analysts78.18
Price Target34.09 (-8.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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)0.56%
PT rev (3m)5.28%
EPS NQ rev (1m)-10.88%
EPS NQ rev (3m)-6.74%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.92 | ||
| Fwd PE | 14.02 | ||
| P/S | 1.79 | ||
| P/FCF | 13.56 | ||
| P/OCF | 11.96 | ||
| P/B | 2.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.62 |
EPS(TTM)2.08
EY5.58%
EPS(NY)2.66
Fwd EY7.13%
FCF(TTM)2.75
FCFY7.38%
OCF(TTM)3.12
OCFY8.36%
SpS20.84
BVpS12.52
TBVpS-0.46
PEG (NY)0.64
PEG (5Y)2.6
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 | 3.11 |
F-Score7
WACC6.72%
ROIC/WACC2.23
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)60%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%34.15%
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y4.57%
Revenue 1Y (TTM)-5.69%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-3.95%
Revenue Next Year2.5%
Revenue Next 2Y2.33%
Revenue Next 3Y2.35%
Revenue Next 5Y1.43%
EBIT growth 1Y60.02%
EBIT growth 3Y8.42%
EBIT growth 5Y4.81%
EBIT Next Year53.13%
EBIT Next 3Y17.39%
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%