United Internet (UTDI) AI Stock Analysis

• Market Cap: €5.03B
• Dividend Yield: 7.55%
• Average Volume (3M): 162.00K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.85
• Revenue Growth: -2.19%
• EPS Growth: N/A
• Country: DE
• Employees: 10,972
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.21
• Shares Outstanding: 192,000,000
• 10 Day Avg. Volume: 145,915
• 30 Day Avg. Volume: 162,001
• PEG Ratio: 0.47
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 15.09
• 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: €30.35
• Price Target Upside: 23.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €27.00 ▲(9.76% Upside)

The overall stock score of 61 reflects a combination of mixed financial performance, bearish technical indicators, and a valuation that suggests potential overvaluation despite a strong dividend yield. The most significant factor is the financial performance, which highlights challenges in profitability and operational efficiency. Technical analysis further indicates potential downward pressure, while the valuation offers a mixed view with an attractive dividend yield but a high P/E ratio.

United Internet Business Overview & Revenue Model

Company Description

United Internet AG is a leading European internet services company based in Germany, primarily operating in the sectors of telecommunications and cloud services. The company offers a wide range of products and services including high-speed broadband internet access, mobile communications, web hosting, and cloud services. With a portfolio that includes well-known brands such as 1&1, GMX, and WEB.DE, United Internet serves millions of customers across both consumer and business segments.

How the Company Makes Money

United Internet generates revenue through multiple streams, primarily from internet access services, which include both fixed-line broadband and mobile telephony services. The company earns subscription fees from its various internet and mobile plans. Additionally, it derives significant income from its web hosting and cloud services, catering to businesses that require robust online presence and storage solutions. Advertising revenues from its email and online services also contribute to its earnings. Strategic partnerships with other telecom providers and technology firms enhance its service offerings and customer base, further solidifying its financial performance.

United Internet Financial Statement Overview

Summary

United Internet's financial performance is mixed. Revenue growth is modest at 1.8%, but profitability is a concern with negative net margins. The balance sheet is stable with a manageable debt-to-equity ratio of 0.62, though the negative return on equity is a red flag. Cash flow improvements are positive, with a significant increase in free cash flow, but profitability challenges remain.

Income Statement

United Internet shows a mixed performance in its income statement. The TTM data reveals a slight revenue growth of 1.8%, but profitability metrics like the net profit margin are negative, indicating challenges in converting revenue into profit. The gross profit margin remains stable, suggesting efficient cost management. However, declining EBIT and EBITDA margins over the years highlight pressure on operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.62 in the TTM period, indicating manageable leverage. However, the return on equity is negative, pointing to inefficiencies in generating returns from equity. The equity ratio remains healthy, suggesting a stable capital structure.

Cash Flow

Cash flow analysis shows a strong improvement in free cash flow growth, with a significant increase of over 150% in the TTM period. The operating cash flow to net income ratio is robust, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is relatively low, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.46B	6.33B	6.21B	5.92B	5.65B	5.37B
Gross Profit	1.99B	2.00B	2.06B	2.01B	1.96B	1.60B
EBITDA	1.24B	1.13B	1.29B	1.23B	1.31B	1.07B
Net Income	123.72M	-47.58M	232.72M	367.20M	416.47M	290.55M
Balance Sheet
Total Assets	11.86B	11.94B	11.25B	10.36B	9.67B	9.23B
Cash, Cash Equivalents and Short-Term Investments	52.82M	131.54M	49.44M	53.48M	129.23M	153.44M
Total Debt	3.33B	3.89B	3.27B	2.81B	2.35B	1.94B
Total Liabilities	6.90B	6.39B	5.69B	5.06B	4.75B	4.32B
Stockholders Equity	4.55B	4.78B	4.90B	4.75B	4.47B	4.52B
Cash Flow
Free Cash Flow	392.65M	179.52M	30.61M	-83.86M	597.88M	478.71M
Operating Cash Flow	1.18B	954.12M	828.50M	597.52M	887.63M	925.74M
Investing Cash Flow	-758.57M	-765.60M	-798.19M	-703.54M	-527.30M	-361.07M
Financing Cash Flow	-428.12M	-101.75M	-43.59M	35.07M	-386.10M	-549.14M

United Internet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:UTDI, the sentiment is Negative. The current price of 24.6 is below the 20-day moving average (MA) of 27.15, below the 50-day MA of 27.15, and above the 200-day MA of 22.61, indicating a neutral trend. The MACD of -0.49 indicates Positive momentum. The RSI at 30.64 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:UTDI.

United Internet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNTN	74 Outperform	€3.16B	12.11	18.42%	7.02%	-0.62%	16.87%
DTE	68 Neutral	€130.19B	10.37	21.55%	3.30%	4.06%	156.80%
1U1	66 Neutral	€3.79B	25.11	2.07%	0.23%	-0.46%	-50.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UTDI	61 Neutral	€5.03B	37.64	2.15%	7.55%	-2.19%	―
LSX	53 Neutral	€22.13M	-8.25	-18.53%	―	-3.15%	-44.42%