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freenet AG (DE:FNTN)
:FNTN

freenet (FNTN) AI Stock Analysis

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DE

freenet

(LSE:FNTN)

Rating:61Neutral
Price Target:
€31.00
▲(12.24%Upside)
Freenet's overall stock score reflects solid financial performance and attractive valuation, offset by negative technical indicators. The strong dividend yield and reasonable P/E ratio support the stock, but bearish momentum presents a risk.

freenet (FNTN) vs. iShares MSCI Germany ETF (EWG)

freenet Business Overview & Revenue Model

Company Descriptionfreenet (FNTN) is a telecommunications and internet service provider based in Germany. The company operates in the telecommunications sector, offering a wide range of services including mobile communication, internet access, and digital services. freenet focuses on providing innovative and customer-centric solutions, ensuring seamless connectivity and digital lifestyle products for its customers.
How the Company Makes Moneyfreenet makes money primarily through its telecommunications and internet service offerings. The company's revenue streams include mobile communication services, where it generates income from subscription plans, call charges, and data usage. Additionally, freenet earns from internet services, providing broadband and DSL connections to its consumer base. The company also capitalizes on digital services such as content and entertainment subscriptions. Significant partnerships with network operators and technology providers enhance its service offerings and contribute to its financial performance.

freenet Financial Statement Overview

Summary
Freenet shows solid profitability with strong profit margins and robust cash generation. The balance sheet is stable, though the decline in stockholders' equity and revenue could pose future challenges.
Income Statement
70
Positive
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
65
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.45B2.48B2.63B2.56B2.56B2.58B
Gross Profit880.67M998.47M709.47M911.69M876.29M884.18M
EBITDA497.28M521.46M500.74M487.79M404.24M426.43M
Net Income239.20M246.80M154.60M79.30M198.17M190.51M
Balance Sheet
Total Assets3.36B3.34B3.41B3.63B3.95B4.51B
Cash, Cash Equivalents and Short-Term Investments254.70M193.28M159.80M193.17M299.22M680.25M
Total Debt685.60M697.10M778.10M928.11M1.13B1.48B
Total Liabilities1.79B1.86B1.98B2.16B2.31B2.68B
Stockholders Equity1.57B1.49B1.44B1.47B1.64B1.82B
Cash Flow
Free Cash Flow329.30M327.00M342.40M332.75M318.99M307.18M
Operating Cash Flow371.80M370.70M398.00M395.69M367.21M357.06M
Investing Cash Flow-31.30M-42.30M-55.30M-71.89M-44.13M1.07B
Financing Cash Flow-306.60M-306.60M-360.90M-432.07M-703.67M-898.09M

freenet Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.62
Price Trends
50DMA
30.58
Negative
100DMA
31.04
Negative
200DMA
28.81
Negative
Market Momentum
MACD
-0.76
Negative
RSI
37.21
Neutral
STOCH
70.53
Neutral
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 27.62 is below the 20-day moving average (MA) of 27.62, below the 50-day MA of 30.58, and below the 200-day MA of 28.81, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 70.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FNTN.

freenet Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DE1U1
71
Outperform
€3.29B18.582.93%0.23%-1.02%-41.62%
DEDTE
66
Neutral
€154.63B12.6819.60%2.89%4.90%176.57%
65
Neutral
€4.46B-1.07%7.95%2.37%-123.95%
61
Neutral
$41.07B-0.81-14.21%3.83%2.45%-73.69%
61
Neutral
€3.28B13.7318.97%7.13%-7.04%18.59%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:FNTN
freenet
27.46
3.42
14.24%
DE:DTE
Deutsche Telekom
31.07
8.00
34.66%
DE:1U1
1&1 Drillisch AG
18.60
2.65
16.63%
DE:UTDI
United Internet
23.62
4.82
25.64%
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: May 29, 2025