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

• Market Cap: €3.25B
• Dividend Yield: 0.27%
• Average Volume (3M): 151.19K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.54
• Revenue Growth: -1.02%
• EPS Growth: -41.62%
• Country: DE
• Employees: 3,281
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 0.27
• Shares Outstanding: 176,764,650
• 10 Day Avg. Volume: 131,163
• 30 Day Avg. Volume: 151,193
• PEG Ratio: -5.85
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.72
• 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: €16.33
• Price Target Upside: -11.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: €20.50 ▲(11.29%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, a telecommunications service provider based in Germany, is part of the United Internet AG group. The company operates primarily in the mobile communications sector, offering a variety of services such as mobile network provider services, mobile internet, and value-added services. It serves both private and commercial customers with comprehensive and innovative solutions tailored to meet their connectivity needs.

How the Company Makes Money

1&1 Drillisch AG generates revenue through several key streams. The primary source is its mobile communication services, where the company earns from subscription fees paid by customers for mobile plans. These plans include voice, data, and messaging services. Additionally, 1&1 Drillisch benefits from selling mobile devices such as smartphones and tablets, often bundled with service contracts. The company also earns through value-added services, which include premium features and additional content that customers can subscribe to for an extra fee. Furthermore, strategic partnerships, such as those with network infrastructure providers, enable 1&1 Drillisch to offer competitive services by leveraging shared network capabilities, thus enhancing their service offerings and expanding their customer base.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.06B	4.06B	4.10B	3.96B	3.91B	3.79B
	Gross Profit
1.00B	1.04B	1.16B	1.23B	1.20B	904.99M
	EBIT
254.05M	309.38M	455.82M	756.17M	736.23M	505.30M
	EBITDA
592.46M	607.13M	673.80M	698.09M	712.10M	469.15M
	Net Income Common Stockholders
177.25M	212.76M	314.95M	367.33M	370.02M	219.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.08M	14.04M	3.73M	5.13M	5.79M	8.66M
	Total Assets
8.44B	8.13B	7.74B	7.26B	7.06B	6.69B
	Total Debt
0.00	412.96M	188.51M	102.67M	102.28M	98.18M
	Net Debt
-3.14M	408.82M	185.31M	97.99M	97.73M	93.82M
	Total Liabilities
2.30B	2.04B	1.85B	1.68B	1.84B	1.84B
	Stockholders Equity
6.14B	6.09B	5.89B	5.58B	5.22B	4.85B
Cash Flow		Free Cash Flow
-42.23M	20.46M	-70.14M	-68.82M	394.56M	243.43M
	Operating Cash Flow
266.67M	311.42M	225.58M	180.57M	431.96M	450.67M
	Investing Cash Flow
-430.99M	-180.80M	-125.23M	-97.42M	-350.57M	-397.35M
	Financing Cash Flow
163.04M	-129.68M	-101.83M	-83.03M	-81.20M	-80.75M

1&1 Drillisch AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 18.42 is above the 20-day moving average (MA) of 18.30, above the 50-day MA of 16.48, and above the 200-day MA of 13.77, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 72.37 is Negative, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, 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
1U1	71 Outperform	€3.25B	18.32	2.93%	0.27%	-1.02%	-41.62%
DTE	66 Neutral	€152.79B	12.53	19.60%	2.95%	4.90%	176.57%
UTDI	65 Neutral	€4.56B	―	-1.07%	1.65%	2.37%	-123.95%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
FNTN	61 Neutral	€3.26B	13.62	18.97%	7.19%	-7.04%	18.59%