freenet AG (DE:FNTN)
XETRA:FNTN
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freenet
(XETRA:FNTN)
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Rating:61Neutral
Price Target:
€27.00
▼(-2.32% Downside)
Action:DowngradedDate:03/25/26
The score is driven primarily by improved profitability and strong free-cash-flow conversion, supported by an attractive valuation (moderate P/E and high dividend yield). These positives are tempered by weak technicals (price below major moving averages and bearish momentum) and the combination of slight revenue contraction with higher leverage in 2025.
Positive Factors
Strong free cash flow conversion
High FCF conversion (≈90% of net income) is a durable strength: it funds dividends, debt service, and reinvestment without relying on volatile revenue growth. Consistent positive OCF/FCF improves financial flexibility, enabling shareholder returns or balance-sheet repairs during cyclical dips.
Negative Factors
Slight revenue contraction
A persistent top-line decline or stagnation constrains long-term growth prospects and forces reliance on margin gains to drive EPS. If revenue erosion continues, it limits operating leverage, investment capacity, and the sustainability of high payout levels despite current profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
High FCF conversion (≈90% of net income) is a durable strength: it funds dividends, debt service, and reinvestment without relying on volatile revenue growth. Consistent positive OCF/FCF improves financial flexibility, enabling shareholder returns or balance-sheet repairs during cyclical dips.
Read all positive factors
freenet (FNTN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€3.29B
Dividend Yield6.73%
Average Volume (3M)273.15K
Price to Earnings (P/E)12.8
Beta (1Y)0.43
Revenue Growth-0.62%
EPS Growth16.87%
CountryDE
Employees3,196
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding118,900,600
10 Day Avg. Volume242,957
30 Day Avg. Volume273,155
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)2.26
Price to Sales (P/S)1.42
P/FCF Ratio9.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€29.80Price Target Upside7.81% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)2.36
Revenue Forecast (FY)€2.87B
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 servi...
How the Company Makes Money
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freenet Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
60
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.44B | 2.48B | 2.63B | 2.56B | 2.56B |
| Gross Profit | 632.70M | 998.47M | 709.47M | 911.69M | 876.29M |
| EBITDA | 550.40M | 521.46M | 500.74M | 487.79M | 404.24M |
| Net Income | 271.20M | 246.80M | 154.60M | 79.30M | 198.17M |
Balance Sheet | |||||
| Total Assets | 3.68B | 3.34B | 3.41B | 3.63B | 3.95B |
| Cash, Cash Equivalents and Short-Term Investments | 168.20M | 181.60M | 159.80M | 193.17M | 299.22M |
| Total Debt | 1.01B | 697.10M | 778.10M | 928.11M | 1.13B |
| Total Liabilities | 2.14B | 1.86B | 1.98B | 2.16B | 2.31B |
| Stockholders Equity | 1.53B | 1.49B | 1.44B | 1.47B | 1.64B |
Cash Flow | |||||
| Free Cash Flow | 363.90M | 327.00M | 342.40M | 332.75M | 318.99M |
| Operating Cash Flow | 405.80M | 370.70M | 398.00M | 395.69M | 367.21M |
| Investing Cash Flow | -204.20M | -42.30M | -55.30M | -71.89M | -44.13M |
| Financing Cash Flow | -315.00M | -306.60M | -360.90M | -432.07M | -703.67M |
freenet Technical Analysis
Negative
27.64
Price Trends
28.91
Negative
28.82
Negative
28.23
Negative
Market Momentum
-0.33
Negative
52.91
Neutral
81.08
Negative
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 27.64 is above the 20-day moving average (MA) of 26.76, below the 50-day MA of 28.91, and below the 200-day MA of 28.23, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 52.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FNTN.
freenet Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | €151.56B | 14.02 | 15.62% | 3.28% | 3.58% | 103.26% | |
62 Neutral | €4.27B | 26.36 | 2.71% | 0.21% | -0.46% | -50.77% | |
61 Neutral | €3.29B | 12.76 | 18.18% | 6.73% | -0.62% | 16.87% | |
56 Neutral | €5.22B | 16.79 | 6.12% | 7.04% | -2.19% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | €920.70M | -2.07 | -0.48% | 1.03% | -4.06% | 82.42% |
* General Sector Average
DE:FNTN
freenet
27.64
-4.98
-15.26%
DE:DTE
Deutsche Telekom
30.99
0.52
1.70%
DE:1U1
1&1 AG
24.20
9.25
61.86%
DE:PSM
ProSiebenSat.1 Media SE
4.06
-1.76
-30.25%
DE:TC1
Tele Columbus
0.83
0.30
56.60%
DE:UTDI
United Internet
27.98
11.25
67.26%
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.