1&1 Drillisch AG (1U1) AI Stock Analysis

• Market Cap: €3.28B
• Dividend Yield: 0.27%
• Average Volume (3M): 159.39K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.44
• Revenue Growth: -1.02%
• EPS Growth: -41.62%
• Country: DE
• Employees: 3,281
• Sector: Communication Services
• Sector Strength: 76
• Industry: Telecommunications Services
• EPS (TTM): 0.36
• Shares Outstanding: 176,764,650
• 10 Day Avg. Volume: 73,657
• 30 Day Avg. Volume: 159,389
• PEG Ratio: -1.10
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -77.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €17.77
• Price Target Upside: -3.95% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: €20.50 ▲(10.81%Upside)

1&1 Drillisch AG demonstrates a strong financial base with low leverage and solid cash flow generation, but faces profitability and margin challenges. The technical indicators show positive momentum, though the high RSI suggests caution. Valuation metrics are reasonable, with a moderate P/E ratio and a modest dividend yield. Enhancing operational efficiency will be key to sustaining growth and improving investor confidence.

1&1 Drillisch AG Business Overview & Revenue Model

Company Description

1&1 Drillisch AG, based in Germany, is a telecommunications provider that operates in the mobile network sector. It is part of the United Internet AG group and offers a range of mobile communications services, including voice, data, and internet services. The company is known for its competitive mobile tariff plans and is a significant player in the German telecommunications market, providing services to both individual and business customers.

How the Company Makes Money

1&1 Drillisch AG generates revenue primarily through the provision of mobile telecommunications services. This includes charging customers for mobile voice and data plans, which are offered under various brands such as 1&1, yourfone, and winSIM, among others. The company earns money through subscription fees from customers who sign up for these mobile plans, often bundled with additional features such as data packages or international calling options. Additionally, 1&1 Drillisch benefits from partnerships and agreements with other telecommunications infrastructure providers, enabling them to offer competitive network coverage and service quality. The company may also earn revenue from the sale of mobile devices and accessories, which are offered alongside its service plans.

1&1 Drillisch AG Financial Statement Overview

Summary

1&1 Drillisch AG demonstrates strong financial stability with a robust equity position and low leverage. However, it faces profitability challenges with declining margins and inconsistent revenue growth. Cash flow generation is solid, but capital expenditures impact free cash flow. Improving operational efficiency and profitability is crucial.

Income Statement

1&1 Drillisch AG's revenue has seen fluctuations, with a slight decrease in 2024. The gross profit margin is healthy but has declined over recent years, indicating potential cost pressures. Net profit margin also decreased in 2024, suggesting challenges in maintaining profitability. EBIT and EBITDA margins have contracted, reflecting a need for operational efficiency improvements.

Balance Sheet

The company maintains a strong equity base with a high equity ratio, suggesting financial stability. The debt-to-equity ratio is low, reflecting conservative leverage. However, the return on equity has been decreasing, indicating a need to enhance profitability from equity investments.

Cash Flow

Free cash flow has improved in 2024, but overall growth has been inconsistent. The operating cash flow to net income ratio is healthy, indicating good cash generation from operations. However, free cash flow to net income is relatively low, pointing to capital expenditure pressures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	4.10B	3.96B	3.91B	3.79B
Gross Profit	1.04B	1.16B	1.23B	1.20B	904.99M
EBITDA	607.13M	673.80M	698.09M	712.10M	469.15M
Net Income	212.76M	314.95M	367.33M	370.02M	219.59M
Balance Sheet
Total Assets	8.13B	7.74B	7.26B	7.06B	6.69B
Cash, Cash Equivalents and Short-Term Investments	14.04M	3.73M	5.13M	5.79M	8.66M
Total Debt	412.96M	188.51M	102.67M	102.28M	98.18M
Total Liabilities	2.04B	1.85B	1.68B	1.84B	1.84B
Stockholders Equity	6.09B	5.89B	5.58B	5.22B	4.85B
Cash Flow
Free Cash Flow	20.46M	-70.14M	-68.82M	394.56M	243.43M
Operating Cash Flow	311.42M	225.58M	180.57M	431.96M	450.67M
Investing Cash Flow	-180.80M	-125.23M	-97.42M	-350.57M	-397.35M
Financing Cash Flow	-129.68M	-101.83M	-83.03M	-81.20M	-80.75M

1&1 Drillisch AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:1U1, the sentiment is Positive. The current price of 18.5 is below the 20-day moving average (MA) of 18.59, above the 50-day MA of 18.47, and above the 200-day MA of 14.50, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.99 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:1U1.

1&1 Drillisch AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	73 Outperform	€159.20B	13.05	19.60%	2.84%	4.90%	176.57%
1U1	71 Outperform	€3.28B	18.52	2.93%	0.27%	-1.02%	-41.62%
Sector *	66 Neutral	¥382.85B	15.25	2.24%	2.38%	5.42%	-14.79%
UTDI	66 Neutral	€4.76B	―	-1.07%	7.49%	2.37%	-123.95%
FNTN	61 Neutral	€3.36B	14.06	18.97%	6.97%	-7.04%	18.59%