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ecotel communication ag (DE:E4C)
XETRA:E4C
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ecotel communication (E4C) AI Stock Analysis

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DE:E4C

ecotel communication

(XETRA:E4C)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
€7.00
▼(-45.74% Downside)
Action:Reiterated
Date:07/10/26
The score is held back primarily by the sharp deterioration in profitability (near-zero operating and net margins and very low ROE) despite stable revenue, moderate leverage, and improved TTM free cash flow. Technicals add further pressure with the stock trading below key moving averages and negative MACD. Valuation is also a headwind due to the extremely high P/E, only partially cushioned by a ~4% dividend yield.
Positive Factors
Stable Revenue
Consistent top-line growth (TTM +~3%) shows stable demand for telecom services and a resilient customer base. Over 2–6 months this revenue footing supports predictable cash flows, preserves scale benefits, and gives management time to address margin pressures without immediate revenue risk.
Negative Factors
Near-zero Profitability
Operating and net margins near breakeven reflect weak pricing power or elevated costs and materially reduce the company’s ability to generate durable earnings. Persistently thin margins constrain retained earnings, limit reinvestment, and make long-term margin recovery imperative for sustainable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Revenue
Consistent top-line growth (TTM +~3%) shows stable demand for telecom services and a resilient customer base. Over 2–6 months this revenue footing supports predictable cash flows, preserves scale benefits, and gives management time to address margin pressures without immediate revenue risk.
Read all positive factors

ecotel communication (E4C) vs. iShares MSCI Germany ETF (EWG)

ecotel communication Business Overview & Revenue Model

Company Description
ecotel communication ag engages in the marketing of information and telecommunications solutions for startups, and small and medium-sized companies in Germany and internationally. It operates through Ecotel Business Customers and Ecotel Wholesale ...

ecotel communication Financial Statement Overview

Summary
Mixed fundamentals. Revenue is steady (TTM up ~3% YoY) and the balance sheet leverage is moderate-to-low (TTM debt-to-equity ~0.21). Cash flow has improved with positive TTM free cash flow (~€3.9m). However, profitability has reset sharply since 2023–2024: TTM operating margin is ~0.4% and net margin ~0.1%, with ROE compressed to ~0.4%, which meaningfully drags the score.
Income Statement
41
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue128.33M124.21M115.54M106.29M93.33M70.89M
Gross Profit21.08M15.86M33.14M32.53M31.72M17.80M
EBITDA4.97M2.95M7.74M12.45M23.50M9.65M
Net Income98.54K500.002.01M7.43M67.54M4.78M
Balance Sheet
Total Assets53.59M55.16M54.23M47.33M108.41M61.08M
Cash, Cash Equivalents and Short-Term Investments1.56M1.13M2.79M3.70M66.93M12.64M
Total Debt4.95M5.10M6.82M6.43M5.90M10.05M
Total Liabilities29.87M31.79M30.02M23.60M26.17M32.03M
Stockholders Equity23.72M23.36M24.21M23.73M82.24M24.24M
Cash Flow
Free Cash Flow3.89M-203.10K553.16K2.18M22.98M10.25M
Operating Cash Flow8.32M4.23M7.47M6.10M28.49M15.43M
Investing Cash Flow-1.53M-2.13M-6.90M-2.14M44.03M-4.92M
Financing Cash Flow-5.61M-3.31M-1.93M-67.19M-18.22M-5.64M

ecotel communication Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.90
Price Trends
50DMA
7.46
Negative
100DMA
7.60
Negative
200DMA
9.83
Negative
Market Momentum
MACD
-0.12
Negative
RSI
39.95
Neutral
STOCH
37.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:E4C, the sentiment is Negative. The current price of 12.9 is above the 20-day moving average (MA) of 7.09, above the 50-day MA of 7.46, and above the 200-day MA of 9.83, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:E4C.

ecotel communication Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
€2.87B10.9317.50%6.73%6.31%10.31%
62
Neutral
€129.56B14.8814.36%3.28%1.37%-26.06%
61
Neutral
€4.49B14.226.31%7.04%-5.62%
57
Neutral
€3.58B26.362.24%0.21%5.05%-23.13%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
48
Neutral
€24.80M350.000.41%2.44%10.60%-94.81%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:E4C
ecotel communication
7.00
-6.00
-46.15%
DE:DTE
Deutsche Telekom
26.68
-2.78
-9.45%
DE:1U1
1&1 AG
20.25
1.79
9.71%
DE:FNTN
freenet
23.96
-1.74
-6.77%
DE:TC1
Tele Columbus
0.50
0.11
27.55%
DE:UTDI
United Internet
23.90
-0.69
-2.79%
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.Date of analysis: Jul 10, 2026