FREENET AG (FNTN.DE) Stock Fundamental Analysis
FRA:FNTN - DE000A0Z2ZZ5 - Common Stock
28.62 EUR
+0.26 (+0.92%)
Taking everything into account, FNTN scores 7 out of 10 in our fundamental rating. FNTN was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth FNTN also has an excellent dividend rating. With these ratings, FNTN could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
FNTN had positive earnings in the past year.
FNTN had a positive operating cash flow in the past year.
FNTN had positive earnings in each of the past 5 years.
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 8.27%, FNTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
FNTN has a better Return On Equity (18.70%) than 83.33% of its industry peers.
FNTN has a better Return On Invested Capital (16.45%) than 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 6.64%.
The 3 year average ROIC (9.45%) for FNTN is below the current ROIC(16.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 18.7% | ||
| ROIC | 16.45% |
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 Profit Margin of 10.46%. This is in the better half of the industry: FNTN outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of FNTN has grown nicely.
FNTN's Operating Margin of 16.09% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of FNTN has grown nicely.
The Gross Margin of FNTN (40.57%) is better 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 | 16.09% | ||
| PM (TTM) | 10.46% | ||
| GM | 40.57% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FNTN is creating value.
FNTN has about the same amout of shares outstanding than it did 1 year ago.
FNTN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FNTN has been reduced compared to a year ago.
2.2 Solvency
FNTN has an Altman-Z score of 2.79. This is not the best score and indicates that FNTN is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.79, FNTN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
FNTN has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.89, FNTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that FNTN is not too dependend on debt financing.
The Debt to Equity ratio of FNTN (0.20) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 2.79 |
ROIC/WACC2.55
WACC6.45%
2.3 Liquidity
A Current Ratio of 0.57 indicates that FNTN may have some problems paying its short term obligations.
FNTN has a worse Current ratio (0.57) than 66.67% of its industry peers.
FNTN has a Quick Ratio of 0.57. 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 (0.53) 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 | 0.57 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.65% over the past year.
Measured over the past 5 years, FNTN shows a small growth in Earnings Per Share. The EPS has been growing by 6.90% on average per year.
Looking at the last year, FNTN shows a decrease in Revenue. The Revenue has decreased by -2.44% in the last year.
The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)17.65%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%50%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%8.89%
3.2 Future
The Earnings Per Share is expected to grow by 8.04% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.48% on average over the next years.
EPS Next Y19.55%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
EPS Next 5Y8.04%
Revenue Next Year1.78%
Revenue Next 2Y1.79%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
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 stable.
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 13.01, the valuation of FNTN can be described as correct.
Based on the Price/Earnings ratio, FNTN is valued cheaper than 83.33% of the companies in the same industry.
FNTN is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
FNTN is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNTN indicates a rather cheap valuation: FNTN is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FNTN to the average of the S&P500 Index (22.80), we can say FNTN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than FNTN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FNTN is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.6 | ||
| EV/EBITDA | 7.04 |
4.3 Compensation for Growth
The 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)0.67
PEG (5Y)1.89
EPS Next 2Y9.65%
EPS Next 3Y8.13%
5. Dividend
5.1 Amount
FNTN has a Yearly Dividend Yield of 6.91%, which is a nice return.
Compared to an average industry Dividend Yield of 2.76, FNTN pays a better dividend. On top of this FNTN pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, FNTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
5.2 History
The dividend of FNTN has a limited annual growth rate of 2.99%.
Dividend Growth(5Y)2.99%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
The dividend of FNTN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
FRA:FNTN (8/27/2025, 5:35:30 PM)
28.62
+0.26 (+0.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.05%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.40B
Analysts76
Price Target33.18 (15.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.91% |
Yearly Dividend1.68
Dividend Growth(5Y)2.99%
DP0%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.47%
Min EPS beat(2)-29.92%
Max EPS beat(2)-17.03%
EPS beat(4)2
Avg EPS beat(4)-7.64%
Min EPS beat(4)-29.92%
Max EPS beat(4)10.36%
EPS beat(8)3
Avg EPS beat(8)-17.07%
EPS beat(12)3
Avg EPS beat(12)-28.28%
EPS beat(16)5
Avg EPS beat(16)-17.36%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-4.65%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.59%
Revenue beat(12)1
Avg Revenue beat(12)-2.37%
Revenue beat(16)1
Avg Revenue beat(16)-2.46%
PT rev (1m)-1.09%
PT rev (3m)-3.65%
EPS NQ rev (1m)8.48%
EPS NQ rev (3m)-9.14%
EPS NY rev (1m)-6.45%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.45 | ||
| P/S | 1.37 | ||
| P/FCF | 9.6 | ||
| P/OCF | 8.64 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.04 |
EPS(TTM)2.2
EY7.69%
EPS(NY)2.5
Fwd EY8.74%
FCF(TTM)2.98
FCFY10.42%
OCF(TTM)3.31
OCFY11.58%
SpS20.97
BVpS11.73
TBVpS-1.02
PEG (NY)0.67
PEG (5Y)1.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 18.7% | ||
| ROCE | 20.77% | ||
| ROIC | 16.45% | ||
| ROICexc | 17.7% | ||
| ROICexgc | 113.63% | ||
| OM | 16.09% | ||
| PM (TTM) | 10.46% | ||
| GM | 40.57% | ||
| FCFM | 14.22% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 27.21% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 15.92 | ||
| Cash Conversion | 72.14% | ||
| Profit Quality | 135.93% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.79 |
F-Score7
WACC6.45%
ROIC/WACC2.55
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)17.65%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%50%
EPS Next Y19.55%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
EPS Next 5Y8.04%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%8.89%
Revenue Next Year1.78%
Revenue Next 2Y1.79%
Revenue Next 3Y1.89%
Revenue Next 5Y2.48%
EBIT growth 1Y4.89%
EBIT growth 3Y8.42%
EBIT growth 5Y4.81%
EBIT Next Year53.07%
EBIT Next 3Y17.48%
EBIT Next 5Y12.46%
FCF growth 1Y4.73%
FCF growth 3Y0.83%
FCF growth 5Y0.49%
OCF growth 1Y-1.44%
OCF growth 3Y0.32%
OCF growth 5Y0.35%