United Internet (UTDI) AI Stock Analysis

• Market Cap: €4.66B
• Dividend Yield: 7.62%
• Average Volume (3M): 282.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 2.37%
• EPS Growth: -123.95%
• Country: DE
• Employees: 10,972
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): 0.29
• Shares Outstanding: 192,000,000
• 10 Day Avg. Volume: 231,997
• 30 Day Avg. Volume: 282,635
• PEG Ratio: 5.28
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.11
• 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: €27.52
• Price Target Upside: 9.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: €24.50 ▼(-2.55%Downside)

United Internet's overall score reflects a balance of strengths and challenges. The company's financial performance is mixed, with positive revenue growth but profitability issues. Technical analysis suggests positive momentum, supporting the stock's price. However, valuation remains a concern with a negative P/E ratio. Despite these challenges, the dividend yield provides a small buffer for investors.

United Internet Business Overview & Revenue Model

Company Description

United Internet AG, through its subsidiaries, operates as an Internet service provider. The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments. It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides ad-financed and fee-based application products for consumer and business customers, including domains, websites, web hosting, servers, cloud solutions, and e-shops; personal information management applications, such as email, to-do lists, appointments, and addresses; and group works, online storage, and office software. It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, InterNetX, united-domains, and World4You brand names. In addition, the company offers customers professional services in the fields of active domain management under the Sedo brand; and online advertising services under the United Internet Media brand name. It has operations in Germany, the United States, the United Kingdom, Spain, France, Poland, Italy, Austria, Hungary, Romania, Bulgaria, the Czech Republic, Slovakia, the Netherlands, Switzerland, Canada, and Mexico. The company was founded in 1988 and is headquartered in Montabaur, Germany.

How the Company Makes Money

United Internet generates revenue primarily through its Access and Applications segments. The Access segment includes broadband and mobile services for residential and business customers, with income driven by subscription fees for internet and telecommunication services. The Applications segment includes revenue from hosting services, e-mail, cloud applications, and advertising, capitalizing on its large user base. The company also benefits from strategic partnerships and acquisitions, expanding its service offerings and customer reach, which further contribute to its revenue streams.

United Internet Financial Statement Overview

Summary

United Internet shows a mixed financial performance. Revenue growth is positive, but profitability challenges are evident with recent negative net income. The balance sheet is stable with reasonable leverage, yet profitability issues have impacted return metrics. Strong operating cash flow is a positive, but the decline in free cash flow due to increased capital expenditures raises concerns about cash generation sustainability.

Income Statement

The company has shown consistent revenue growth, with a notable increase in TTM revenue compared to previous years. However, profitability has declined with a negative net income in recent periods, indicating challenges in managing costs or operational inefficiencies. The gross profit margin remains stable, but the EBIT and EBITDA margins have decreased, reflecting pressure on operating profitability.

Balance Sheet

The balance sheet reflects a stable equity base, with a moderate debt-to-equity ratio indicating balanced leverage. However, the return on equity has turned negative recently due to declining net income. The equity ratio remains healthy, suggesting a solid financial foundation despite recent profitability challenges.

Cash Flow

Operating cash flow remains strong, providing a stable cash base for the company. However, free cash flow has decreased significantly, reflecting higher capital expenditures. The free cash flow to net income ratio is negatively impacted due to recent losses, indicating challenges in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.39B	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	1.18B	1.13B	1.29B	1.26B	1.31B	1.04B
Net Income	-52.04M	-47.58M	232.72M	367.20M	416.47M	290.55M
Balance Sheet
Total Assets	11.97B	11.94B	11.25B	10.36B	9.67B	9.23B
Cash, Cash Equivalents and Short-Term Investments	184.77M	131.54M	49.44M	53.48M	129.23M	153.44M
Total Debt	2.98B	3.89B	3.27B	2.81B	2.35B	1.94B
Total Liabilities	6.38B	6.39B	5.69B	5.06B	4.75B	4.32B
Stockholders Equity	4.80B	4.78B	4.90B	4.75B	4.47B	4.52B
Cash Flow
Free Cash Flow	156.08M	179.52M	30.61M	-83.86M	597.88M	478.71M
Operating Cash Flow	913.05M	954.12M	828.50M	597.52M	887.63M	925.74M
Investing Cash Flow	-761.14M	-765.60M	-798.19M	-703.54M	-527.30M	-361.07M
Financing Cash Flow	-162.18M	-101.75M	-43.59M	35.07M	-386.10M	-549.14M

United Internet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:UTDI, the sentiment is Positive. The current price of 25.14 is above the 20-day moving average (MA) of 24.25, above the 50-day MA of 22.96, and above the 200-day MA of 17.60, indicating a bullish trend. The MACD of 0.46 indicates Positive momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 92.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:UTDI.

United Internet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTDI	65 Neutral	€4.66B	―	-1.07%	7.62%	2.37%	-123.95%
Sector *	65 Neutral	£1.76B	10.06	-12.53%	3.61%	2.59%	-474.71%
0MPH		€154.28B	12.60	19.60%	2.90%	―	―
0E6Y		€3.28B	18.46	2.93%	0.27%	―	―
0MV2		€3.30B	13.80	18.97%	7.10%	―	―
0O45		€26.30M	―	-18.53%	―	―	―
0R50		€114.94M	―	-291.14%	―	―	―