freenet (FNTN) AI Stock Analysis

• Market Cap: €3.28B
• Dividend Yield: 7.08%
• Average Volume (3M): 280.09K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.48
• Revenue Growth: -2.44%
• EPS Growth: 17.20%
• Country: DE
• Employees: 3,196
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.56
• Shares Outstanding: 118,900,600
• 10 Day Avg. Volume: 264,268
• 30 Day Avg. Volume: 280,091
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €33.59
• Price Target Upside: 20.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: €32.00 ▲(15.03% Upside)

freenet's overall stock score is driven by strong financial performance and attractive valuation. The company's consistent revenue growth, improved profitability, and robust cash generation capabilities are significant strengths. The technical analysis presents mixed signals, with some short-term weakness but potential medium-term strength. The high dividend yield further enhances the stock's appeal.

freenet Business Overview & Revenue Model

Company Description

Freenet (FNTN) is a leading telecommunications and digital services provider based in Germany, specializing in broadband and mobile communication services. The company operates primarily in the sectors of telecommunications, internet services, and digital content distribution. Its core products include mobile phone plans, high-speed internet access, and various digital services such as streaming and cloud storage solutions, catering to both individual consumers and business clients.

How the Company Makes Money

Freenet generates revenue through multiple channels, with its primary revenue streams being subscription fees from mobile and internet services. The company offers a range of mobile plans and broadband packages, which customers pay for on a monthly basis. Additionally, Freenet earns income from value-added services, including digital content subscriptions and cloud services. Significant partnerships with telecom networks and content providers enhance its service offerings and customer engagement, contributing to its earnings. The company also engages in upselling and cross-selling products, which further boosts its revenue potential.

freenet Financial Statement Overview

Summary

Freenet demonstrates a strong financial performance with consistent revenue growth, improved profitability, and efficient cash flow management. The reduction in leverage enhances financial stability, although historical volatility in revenue and margins suggests the need for cautious management. The company's robust cash generation capabilities position it well for future growth and investment opportunities.

Income Statement

The income statement shows a solid performance with a consistent revenue growth rate of 2.03% in the TTM period, following a slight decline in the previous year. Gross profit margin remains strong at 39.32%, and net profit margin has improved to 10.46%, indicating enhanced profitability. EBIT and EBITDA margins are stable, reflecting efficient operational management. However, the previous year's revenue decline and fluctuating margins suggest some volatility.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.18 in the TTM period, significantly reduced from previous years. Return on equity is strong at 17.70%, indicating effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure. However, the historical high leverage poses a potential risk if not managed carefully.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 7.65% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio is close to 0.90, reflecting efficient cash conversion. The consistent growth in free cash flow over the years highlights financial stability and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.48B	2.63B	2.56B	2.56B	2.58B
Gross Profit	980.17M	998.47M	709.47M	911.69M	876.29M	884.18M
EBITDA	529.00M	521.46M	500.74M	487.79M	404.24M	426.43M
Net Income	260.80M	246.80M	154.60M	79.30M	198.17M	190.51M
Balance Sheet
Total Assets	3.15B	3.34B	3.41B	3.63B	3.95B	4.51B
Cash, Cash Equivalents and Short-Term Investments	136.40M	181.60M	159.80M	193.17M	299.22M	680.25M
Total Debt	251.30M	697.10M	778.10M	928.11M	1.13B	1.48B
Total Liabilities	1.76B	1.86B	1.98B	2.16B	2.31B	2.68B
Stockholders Equity	1.39B	1.49B	1.44B	1.47B	1.64B	1.82B
Cash Flow
Free Cash Flow	354.50M	327.00M	342.40M	332.75M	318.99M	307.18M
Operating Cash Flow	393.90M	370.70M	398.00M	395.69M	367.21M	357.06M
Investing Cash Flow	-33.30M	-42.30M	-55.30M	-71.89M	-44.13M	1.07B
Financing Cash Flow	-352.50M	-306.60M	-360.90M	-432.07M	-703.67M	-898.09M

freenet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FNTN, the sentiment is Negative. The current price of 27.82 is below the 20-day moving average (MA) of 28.26, below the 50-day MA of 28.05, and below the 200-day MA of 29.30, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 6.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FNTN.

freenet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNTN	74 Outperform	€3.28B	12.58	18.85%	7.08%	-2.44%	17.20%
Sector *	56 Neutral	$13.59B	17.69	10.03%	0.92%	7.13%	-12.93%
0MPH	―	€146.57B	11.71	21.55%	―	―	―
0E6Y	―	€3.60B	24.00	2.48%	―	―	―
0QG9	―	€1.52B	31.26	-6.04%	―	―	―
0R50	―	€120.41M	―	-1682.75%	―	―	―
0GE4	―	€5.02B	37.72	2.66%	―	―	―