1&1 AG (DE:1U1)
XETRA:1U1
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1&1 AG
(XETRA:1U1)
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Rating:57Neutral
Price Target:
€26.00
▲(15.56% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by solid financial stability (notably the strong balance sheet) and improving cash flow, but is held back by a weakened profitability profile, bearish technical momentum, and a high P/E that only partly benefits from the very high dividend yield.
Positive Factors
Balance sheet strength
A zero-debt, sizable-equity balance sheet provides durable financial flexibility. It lowers refinancing risk, supports sustained capex and network investments, preserves dividend capacity and M&A optionality, and helps the company weather cyclical telecom demand over months.
Negative Factors
Compressed profitability
Material margin compression and a sharp step-down in net income indicate weaker earnings quality. Sustained low margins constrain the firm's ability to absorb cost inflation, invest in growth or increase shareholder returns without structural pricing or cost improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A zero-debt, sizable-equity balance sheet provides durable financial flexibility. It lowers refinancing risk, supports sustained capex and network investments, preserves dividend capacity and M&A optionality, and helps the company weather cyclical telecom demand over months.
Read all positive factors
1&1 AG (1U1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€3.86B
Dividend Yield0.21%
Average Volume (3M)40.46K
Price to Earnings (P/E)28.4
Beta (1Y)0.43
Revenue Growth5.05%
EPS Growth-23.13%
CountryDE
Employees3,281
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.77
Shares Outstanding176,764,650
10 Day Avg. Volume24,134
30 Day Avg. Volume40,457
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)0.73
Price to Sales (P/S)1.06
P/FCF Ratio26.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€25.78Price Target Upside14.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1
Revenue Forecast (FY)€4.53B
1&1 AG Business Overview & Revenue Model
Company Description
1&1 AG, alongside its subsidiaries, operates as a leading telecommunications service provider across Germany. The company structures its business into two primary segments: Access and 5G. Through its Access segment, it delivers a comprehensive sui...
How the Company Makes Money
1&1 AG primarily makes money by charging recurring subscription fees for telecommunications services. Its core revenue streams are (1) mobile service revenue from monthly plans for voice, SMS, and data, including handset-related offerings where ap...
1&1 AG Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
80
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.26B | 4.14B | 4.06B | 4.10B | 3.96B | 3.91B |
| Gross Profit | 923.37M | 853.82M | 1.04B | 1.16B | 1.23B | 1.20B |
| EBITDA | 618.97M | 493.69M | 607.13M | 673.80M | 698.09M | 712.10M |
| Net Income | 136.34M | 165.70M | 212.76M | 314.95M | 367.33M | 370.02M |
Balance Sheet | ||||||
| Total Assets | 10.87B | 11.01B | 8.13B | 7.74B | 7.26B | 7.06B |
| Cash, Cash Equivalents and Short-Term Investments | 50.63M | 21.69M | 14.04M | 3.73M | 5.13M | 5.79M |
| Total Debt | 0.00 | 1.11B | 412.96M | 260.55M | 102.67M | 102.28M |
| Total Liabilities | 4.86B | 5.01B | 2.04B | 1.85B | 1.68B | 1.84B |
| Stockholders Equity | 6.01B | 6.00B | 6.09B | 5.89B | 5.58B | 5.22B |
Cash Flow | ||||||
| Free Cash Flow | 200.49M | 165.50M | 20.46M | -70.14M | -68.82M | 394.56M |
| Operating Cash Flow | 678.86M | 576.31M | 311.42M | 225.58M | 180.57M | 431.96M |
| Investing Cash Flow | -734.88M | -812.79M | -180.80M | -125.23M | -97.42M | -350.57M |
| Financing Cash Flow | 57.60M | 240.04M | -129.68M | -101.83M | -83.03M | -81.20M |
1&1 AG Technical Analysis
Negative
22.50
Price Trends
23.25
Negative
23.82
Negative
23.13
Negative
Market Momentum
-0.02
Positive
36.06
Neutral
4.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:1U1, the sentiment is Negative. The current price of 22.5 is below the 20-day moving average (MA) of 23.46, below the 50-day MA of 23.25, and below the 200-day MA of 23.13, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 4.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:1U1.
1&1 AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €2.97B | 11.29 | 17.50% | 6.73% | 6.31% | 10.31% | |
62 Neutral | €128.70B | 14.76 | 14.36% | 3.28% | 1.37% | -26.06% | |
61 Neutral | €4.51B | 14.29 | 6.31% | 7.04% | -5.62% | ― | |
57 Neutral | €3.86B | 28.35 | 2.24% | 0.21% | 5.05% | -23.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
DE:1U1
1&1 AG
20.95
2.47
13.38%
DE:DTE
Deutsche Telekom
26.60
-2.94
-9.96%
DE:FNTN
freenet
25.10
0.16
0.63%
DE:TC1
Tele Columbus
0.49
0.10
25.64%
DE:O2D
Telefonica Deutschland Holding
2.08
-0.17
-7.60%
DE:UTDI
United Internet
23.64
-0.14
-0.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.