1&1 AG (DE:1U1)
XETRA:1U1
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1&1 AG
(XETRA:1U1)
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Rating:62Neutral
Price Target:
€24.50
▲(2.73% Upside)
Action:ReiteratedDate:03/21/26
The score is primarily driven by weakening profitability and uneven free-cash-flow history despite stable revenue and a still-solid balance sheet. Technicals are moderately weak with negative momentum and price below key shorter-term moving averages. Valuation is supported by an exceptionally high dividend yield, partially offset by a mid-to-higher P/E.
Positive Factors
Recurring subscription revenue
A business model driven by recurring mobile and broadband subscriptions creates predictable top-line cash flows and lower customer churn sensitivity. Over 2–6 months this stability supports steady revenue, planning for network investments, and resilience to short-term demand swings.
Negative Factors
Margin compression
Sustained decline in net income signals margin pressure and deteriorating capital productivity. If margins remain compressed, the company will face reduced retained earnings for reinvestment, weaker ROE and pressure on dividend sustainability absent structural cost or pricing improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue
A business model driven by recurring mobile and broadband subscriptions creates predictable top-line cash flows and lower customer churn sensitivity. Over 2–6 months this stability supports steady revenue, planning for network investments, and resilience to short-term demand swings.
Read all positive factors
1&1 AG (1U1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.20B
Dividend Yield0.21%
Average Volume (3M)40.46K
Price to Earnings (P/E)26.4
Beta (1Y)0.54
Revenue Growth-0.46%
EPS Growth-50.77%
CountryDE
Employees3,281
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.31
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
€25.13Price Target Upside5.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.96
Revenue Forecast (FY)€4.27B
1&1 AG Business Overview & Revenue Model
Company Description
1&1 AG, together with its subsidiaries, operates as a telecommunications provider in Germany. The company operates through Access and 5G segments. It provides broadband and mobile services; and wireless access and landline products that include re...
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
54
Neutral
Balance Sheet
78
Positive
Cash Flow
57
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.14B | 4.06B | 4.10B | 3.96B | 3.91B |
| Gross Profit | 853.82M | 1.04B | 1.16B | 1.23B | 1.20B |
| EBITDA | 493.69M | 607.13M | 673.80M | 698.09M | 712.10M |
| Net Income | 165.70M | 212.76M | 314.95M | 367.33M | 370.02M |
Balance Sheet | |||||
| Total Assets | 11.01B | 8.13B | 7.74B | 7.26B | 7.06B |
| Cash, Cash Equivalents and Short-Term Investments | 7.70M | 14.04M | 3.73M | 5.13M | 5.79M |
| Total Debt | 1.11B | 412.96M | 260.55M | 102.67M | 102.28M |
| Total Liabilities | 5.01B | 2.04B | 1.85B | 1.68B | 1.84B |
| Stockholders Equity | 6.00B | 6.09B | 5.89B | 5.58B | 5.22B |
Cash Flow | |||||
| Free Cash Flow | 165.50M | 20.46M | -70.14M | -68.82M | 394.56M |
| Operating Cash Flow | 576.31M | 311.42M | 225.58M | 180.57M | 431.96M |
| Investing Cash Flow | -812.79M | -180.80M | -125.23M | -97.42M | -350.57M |
| Financing Cash Flow | 240.04M | -129.68M | -101.83M | -83.03M | -81.20M |
1&1 AG Technical Analysis
Neutral
23.85
Price Trends
24.61
Negative
24.24
Negative
21.98
Positive
Market Momentum
-0.32
Negative
48.22
Neutral
57.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:1U1, the sentiment is Neutral. The current price of 23.85 is above the 20-day moving average (MA) of 23.85, below the 50-day MA of 24.61, and above the 200-day MA of 21.98, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | €155.72B | 14.02 | 15.62% | 3.28% | 3.58% | 103.26% | |
62 Neutral | €4.20B | 26.36 | 2.71% | 0.21% | -0.46% | -50.77% | |
61 Neutral | €3.19B | 12.76 | 18.18% | 6.73% | -0.62% | 16.87% | |
56 Neutral | €5.18B | 16.79 | 2.80% | 7.04% | -2.19% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
DE:1U1
1&1 AG
23.85
8.74
57.84%
DE:DTE
Deutsche Telekom
31.84
-1.20
-3.63%
DE:FNTN
freenet
26.84
-6.40
-19.26%
DE:TC1
Tele Columbus
0.79
0.21
36.21%
DE:O2D
Telefonica Deutschland Holding
2.07
-0.12
-5.66%
DE:UTDI
United Internet
27.76
10.78
63.46%
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.