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NFON AG (DE:NFN)
XETRA:NFN
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NFON AG
(XETRA:NFN)
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Rating:53Neutral
Price Target:
€4.00
▲(8.11% Upside)
NFON AG's overall stock score is primarily influenced by its stable financial performance and strong balance sheet, which are offset by low profitability and bearish technical indicators. The high P/E ratio suggests overvaluation, and the lack of a dividend yield further detracts from its appeal. While the company's strategic focus on AI and innovation is promising, current market conditions and operational challenges pose risks.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage enhances NFON AG's financial stability, providing resilience against economic fluctuations and enabling strategic investments.
Cash Flow Improvement
Improved cash generation supports NFON AG's ability to fund operations, invest in growth opportunities, and maintain financial flexibility, crucial for long-term sustainability.
AI-Driven Product Launch
The successful launch of Nia FrontDesk enhances NFON AG's product portfolio, leveraging AI to drive customer value and potentially increasing market share in the communications sector.
Negative Factors
Low Profit Margins
Low profit margins indicate challenges in cost management and operational efficiency, which could hinder NFON AG's ability to reinvest in growth and compete effectively.
Slower Revenue Growth
Slower revenue growth reflects market uncertainties and could impact NFON AG's ability to scale operations and achieve long-term financial goals, especially in its core SME segment.
Increased Personnel Expenses
Rising personnel costs could pressure NFON AG's margins and profitability, necessitating effective cost management to sustain financial health and competitive positioning.
NFON AG (NFN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€63.93M
Dividend YieldN/A
Average Volume (3M)7.87K
Price to Earnings (P/E)85.2
Beta (1Y)0.42
Revenue Growth4.89%
EPS Growth-43.66%
CountryDE
Employees420
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.04
Shares Outstanding16,561,125
10 Day Avg. Volume4,681
30 Day Avg. Volume7,872
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)1.67
Price to Sales (P/S)0.93
P/FCF Ratio12.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NFON AG Business Overview & Revenue Model
Company DescriptionNFON AG provides cloud-based telecommunication services to business customers in Germany, Austria, Italy, the United Kingdom, Spain, France, and Portugal. It offers Cloudya and centrexx products for customers with the required brokerage service from the cloud in its data centers through the cloud private branch exchange; and telephone conference services. The company also provides various solutions, such as Nconnect voice for IP communications; Nconnect data, which allows Internet access; Ncontactcenter, a cloud contact centre solution, that facilitates customer support for various channels, agents, and locations; Nhospitality, which integrates cloud telephony into property management systems for hotel industry; Neorecording that allows companies to record conversations and retain them in a tamper-proof and encrypted environment; Nmonitoring Queues to monitor and track internal work performance; and Noperatorpanel, which provides a professional voice reception panel for customers to receive incoming calls and forward certain calls to their intended recipients. In addition, its product portfolio includes unified communications and collaboration, such as Meet and Share; integration for Microsoft Teams; and business applications comprising CRM Connect, as well as sells devices, such as telephones, soft clients for PCs and smartphones, and related software. The company has an agreement with Meetecho. NFON AG was founded in 2007 and is headquartered in Munich, Germany.
How the Company Makes MoneyNFON AG generates revenue primarily through subscription fees for its cloud communication services. The company offers various pricing plans based on the number of users and features selected, allowing businesses to choose packages that align with their needs. Key revenue streams include monthly or annual subscription charges for voice services, additional features like call analytics, and integration with other business applications. Furthermore, NFON benefits from partnerships with telecom carriers and technology providers, which facilitate enhanced service offerings and expanded market reach, contributing significantly to its earnings.
NFON AG Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there are significant achievements such as stable profitability, cash flow, and successful product launches, challenges remain with slower revenue growth, a decline in seat base, and increased operational costs. The company's strategic focus on AI and innovation shows promise for future growth.Q3-2025 Updates
Positive Updates
Stable Profitability and Positive Cash Flow
NFON maintained a positive cash flow and stable profitability with an adjusted EBITDA of EUR 8.7 million, despite the challenging market environment.
Successful Product Launch: Nia FrontDesk
Nia FrontDesk, a new AI-driven product, was launched and received very positive feedback from customers, partners, and analysts, marking it as the fastest-growing product adoption in recent years.
Industry Recognition
NFON was named Manufacturer of the Year, and EVP AI & Innovation, Jana Richter, was recognized as IT Woman of the Year, underscoring the company's credibility in the industry.
Negative Updates
Slower Revenue Growth
Total revenue growth was lower than expected at 2.7%, with a particular slowdown in the core SME business due to market uncertainties and extended decision cycles.
Decline in Seat Base
The seat base declined by 2.6% to 648,000, reflecting a cautious investment sentiment in core markets.
Increased Personnel Expenses
Personnel expenses rose by 9.9% to EUR 28.2 million, primarily due to the integration of Botario and staffing for product development and AI-driven innovations.
Company Guidance
In NFON's Third Quarter and 9 Months 2025 Earnings Call, the company's guidance for the full year was slightly adjusted due to a cautious market environment. Total revenue is now expected to grow between 1% and 2.5%, with adjusted EBITDA projected to range between EUR 11.5 million and EUR 12.5 million. The first nine months saw total revenue increase by 2.7% to EUR 66 million, while the adjusted EBITDA was EUR 8.7 million, reflecting a 3.5% decline from the previous year. Despite challenges, NFON remains confident in its strategy, emphasizing innovation and operational efficiency, and aims to leverage AI-driven solutions like Nia FrontDesk to enhance customer value and drive future growth.NFON AG Financial Statement Overview
Summary
NFON AG shows strong revenue growth and improved profitability, with a stable balance sheet. However, cash flow volatility and low operational efficiency are areas for improvement.Income Statement
NFON AG has shown a strong revenue growth trajectory with a TTM growth rate of 92%. The company has improved its profitability metrics over time, transitioning from negative net profit margins to a positive 0.44% in the TTM. However, the EBIT and EBITDA margins remain relatively low, indicating room for operational efficiency improvements.Balance Sheet
The company's debt-to-equity ratio has improved significantly, reaching 0.0 in the TTM, indicating strong equity financing and reduced leverage risk. The return on equity is positive but modest at 0.80%, suggesting moderate profitability relative to shareholder equity. The equity ratio is healthy, reflecting a stable financial structure.Cash Flow
NFON AG's cash flow performance shows some volatility, with a significant decline in free cash flow growth by 29.74% in the TTM. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting earnings into cash. However, the free cash flow to net income ratio is relatively strong at 71%, suggesting efficient cash generation relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.06M | 87.34M | 82.34M | 80.79M | 75.89M | 67.60M |
| Gross Profit | 43.21M | 43.41M | 24.65M | 35.95M | 61.44M | 53.60M |
| EBITDA | 10.31M | 10.71M | 6.98M | -5.26M | -2.13M | 2.34M |
| Net Income | 750.00K | 710.00K | -802.00K | -15.58M | -8.91M | -2.24M |
Balance Sheet | ||||||
| Total Assets | 88.11M | 89.78M | 73.91M | 69.42M | 83.51M | 73.76M |
| Cash, Cash Equivalents and Short-Term Investments | 11.83M | 13.72M | 12.28M | 13.61M | 28.06M | 23.03M |
| Total Debt | 21.21M | 14.82M | 9.90M | 5.86M | 5.01M | 15.27M |
| Total Liabilities | 38.64M | 41.44M | 26.75M | 21.62M | 20.28M | 28.18M |
| Stockholders Equity | 49.47M | 48.34M | 47.16M | 47.80M | 63.23M | 45.58M |
Cash Flow | ||||||
| Free Cash Flow | 5.80M | 6.42M | 977.00K | -12.41M | -9.65M | -6.45M |
| Operating Cash Flow | 9.18M | 9.41M | 6.84M | -3.87M | -1.76M | 1.15M |
| Investing Cash Flow | -5.25M | -12.90M | -5.87M | -8.45M | -8.48M | -7.69M |
| Financing Cash Flow | -2.34M | 4.16M | -1.94M | -2.08M | 14.82M | -6.81M |
NFON AG Technical Analysis
Neutral
3.70
Price Trends
4.39
Negative
5.29
Negative
5.94
Negative
Market Momentum
-0.17
Negative
46.30
Neutral
96.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NFN, the sentiment is Neutral. The current price of 3.7 is above the 20-day moving average (MA) of 3.68, below the 50-day MA of 4.39, and below the 200-day MA of 5.94, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:NFN.
NFON AG Peers Comparison
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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.