freenet (FNTN) AI Stock Analysis

• Market Cap: €3.36B
• Dividend Yield: 6.98%
• Average Volume (3M): 304.39K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.49
• 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: 395,901
• 30 Day Avg. Volume: 304,390
• 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: €32.98
• Price Target Upside: 16.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 68 Neutral
• Price Target: €31.00 ▲(9.85% Upside)

freenet's overall stock score is driven by solid financial performance and attractive valuation, despite technical indicators suggesting a bearish trend. The company's strong profitability and cash flow generation are key strengths, while the revenue decline and bearish technical signals are concerns.

freenet Business Overview & Revenue Model

Company Description

freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It provides a portfolio of services and products primarily in the areas of mobile voice and data services. The Mobile Communications segment offers mobile communications services, such as marketing of mobile communications services, which include voice and data services from the mobile communications network operators; sells and distributes mobile communications devices, as well as offers additional services for mobile data communications and digital lifestyle; and planning, construction, installation, and maintenance services for WiFi networks. The TV and Media segment provides services to end users in the field of DVB-T2 and IPTV; and planning, project management, installation, operation, service, and marketing services for broadcast-related solutions for business clients in the radio and media sectors. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT solutions, and other services; and voice and data services. The company provides its services under the mobilcom debitel, GRAVIS, MEDIA BROADCAST, klarmobile.de, freenet ENERGY, vitrado.de, FUNK, freenet BASICS, freenet MOBILE, freenet VIDEO, freenet.de, freenet FLEX, freenet TV, waipu.tv, CARMADA, The Cloud, and freenet Business brands. It operates approximately 520 mobilcom-debitel shops and 40 GRAVIS stores. The company sells its products through approximately 400 electronics stores, as well as online platforms. freenet AG was founded in 2005 and is headquartered in Büdelsdorf, Germany.

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 solid profitability and cash flow generation, with an efficient capital structure. While the income statement shows strong profit margins, the slight revenue decline is a concern. The balance sheet is stable, but ongoing equity reduction may require management's attention to sustain financial health.

Income Statement

The company's income statement shows solid profitability with a TTM gross profit margin of 35.95% and a net profit margin of 9.77%. The EBIT margin is at 17.53%, indicating efficient operations. However, there is a revenue decline compared to the previous year, which may impact future growth prospects if not addressed.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.44, suggesting manageable leverage. The equity ratio of 46.76% indicates a healthy capital structure. However, a slight decline in stockholders' equity over the past year could pose challenges if it continues.

Cash Flow

Cash flow analysis reveals strong cash generation capabilities, with the operating cash flow to net income ratio at 1.55, indicating robust operational efficiency. The free cash flow growth rate is positive, despite minor fluctuations, and the company maintains a healthy free cash flow to net income ratio of 1.38.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.45B	2.48B	2.63B	2.56B	2.56B	2.58B
Gross Profit	880.67M	998.47M	709.47M	911.69M	876.29M	884.18M
EBITDA	497.28M	521.46M	500.74M	487.79M	404.24M	426.43M
Net Income	239.20M	246.80M	154.60M	79.30M	198.17M	190.51M
Balance Sheet
Total Assets	3.36B	3.34B	3.41B	3.63B	3.95B	4.51B
Cash, Cash Equivalents and Short-Term Investments	254.70M	193.28M	159.80M	193.17M	299.22M	680.25M
Total Debt	685.60M	697.10M	778.10M	928.11M	1.13B	1.48B
Total Liabilities	1.79B	1.86B	1.98B	2.16B	2.31B	2.68B
Stockholders Equity	1.57B	1.49B	1.44B	1.47B	1.64B	1.82B
Cash Flow
Free Cash Flow	329.30M	327.00M	342.40M	332.75M	318.99M	307.18M
Operating Cash Flow	371.80M	370.70M	398.00M	395.69M	367.21M	357.06M
Investing Cash Flow	-31.30M	-42.30M	-55.30M	-71.89M	-44.13M	1.07B
Financing Cash Flow	-306.60M	-306.60M	-360.90M	-432.07M	-703.67M	-898.09M

freenet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 28.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FNTN, the sentiment is Neutral. The current price of 28.22 is above the 20-day moving average (MA) of 28.07, above the 50-day MA of 27.76, and below the 200-day MA of 29.14, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FNTN.

freenet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	75 Outperform	€150.75B	11.81	21.55%	2.94%	4.06%	156.80%
1U1	71 Outperform	€3.30B	21.86	2.48%	0.27%	-1.57%	-44.37%
FNTN	68 Neutral	€3.36B	12.86	18.85%	6.98%	-2.44%	17.20%
Sector *	67 Neutral	¥48.31B	25.16	10.19%	2.75%	-1.60%	-100.46%
UTDI	66 Neutral	€4.70B	35.18	2.66%	7.53%	2.55%	382.67%
PSM	60 Neutral	€1.80B	31.47	-6.04%	0.63%	-2.64%	-177.27%