United Internet (UTDI) AI Stock Analysis

• Market Cap: €4.98B
• Dividend Yield: 7.04%
• Average Volume (3M): 162.00K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.89
• Revenue Growth: -2.19%
• EPS Growth: N/A
• Country: DE
• Employees: 10,972
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.25
• 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: €28.40
• Price Target Upside: 5.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €27.00 ▲(0.00% Upside)

United Internet's overall stock score reflects stable financial performance and a solid cash flow position, which are offset by challenges in revenue growth and profitability. The technical analysis indicates mixed signals, with bearish momentum but potential support at longer-term moving averages. The valuation suggests the stock may be overvalued, though the high dividend yield is a positive factor for income-focused investors.

Positive Factors

Operational Efficiency

Strong operational efficiency with healthy margins indicates effective cost management and competitive positioning in the market.

Cash Flow Stability

Stable cash flow provides financial flexibility for investments and operations, supporting long-term business sustainability.

Balanced Financial Structure

A balanced financial structure with manageable debt levels supports financial stability and reduces risk exposure.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests potential difficulties in market expansion and customer acquisition, impacting future earnings.

Low Return on Equity

Low ROE indicates inefficiencies in generating shareholder value, which may deter investment and impact stock performance.

Profitability Concerns

Low profitability may limit reinvestment opportunities and affect long-term growth prospects, requiring strategic improvements.

United Internet Business Overview & Revenue Model

Company Description

United Internet AG is a leading internet services company based in Germany, primarily focused on providing a wide range of broadband and mobile communication services. The company operates through several segments, including Access, Applications, and Hosting. Its core products encompass high-speed internet access, web hosting, and cloud services, catering to both private and business customers. United Internet offers various brands, including 1&1, GMX, and WEB.DE, which enhance its market presence in the European telecommunications sector.

How the Company Makes Money

United Internet generates revenue through multiple key streams. The primary revenue source is its Access segment, which provides broadband internet and mobile services to millions of customers, charging subscription fees for connectivity. The Applications segment contributes by offering email and hosting services, with additional monetization through premium features and advertising. Furthermore, the Hosting segment earns revenue from cloud services and server hosting solutions for businesses. Significant partnerships with telecommunications providers and digital service companies also bolster its earnings, allowing for bundled offerings and expanded customer reach.

United Internet Financial Statement Overview

Summary

United Internet's financial statements present a mixed picture. Revenue growth is modest, and profitability remains a concern with negative net margins. The balance sheet shows a stable capital structure, but the negative return on equity is a red flag. Cash flow improvements are a positive sign, but the company needs to address profitability challenges to enhance overall financial health.

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	6.17B	6.33B	6.21B	5.92B	5.65B	5.37B
Gross Profit	1.91B	2.00B	2.06B	2.01B	1.96B	1.60B
EBITDA	1.22B	1.13B	1.29B	1.23B	1.31B	1.07B
Net Income	130.84M	-47.58M	232.72M	367.20M	416.47M	290.55M
Balance Sheet
Total Assets	11.81B	11.94B	11.25B	10.36B	9.67B	9.23B
Cash, Cash Equivalents and Short-Term Investments	105.12M	131.54M	49.44M	53.48M	129.23M	153.44M
Total Debt	3.28B	3.89B	3.27B	2.81B	2.35B	1.94B
Total Liabilities	6.67B	6.39B	5.69B	5.06B	4.75B	4.32B
Stockholders Equity	4.58B	4.78B	4.90B	4.75B	4.47B	4.52B
Cash Flow
Free Cash Flow	403.19M	179.52M	30.61M	-83.86M	597.88M	478.71M
Operating Cash Flow	1.22B	954.12M	828.50M	597.52M	887.63M	925.74M
Investing Cash Flow	-988.48M	-765.60M	-798.19M	-703.54M	-527.30M	-361.07M
Financing Cash Flow	-175.04M	-101.75M	-43.59M	35.07M	-386.10M	-549.14M

United Internet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 27 is above the 20-day moving average (MA) of 25.56, above the 50-day MA of 26.07, and above the 200-day MA of 23.94, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 97.06 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
FNTN	75 Outperform	€3.48B	12.90	18.42%	6.73%	-0.62%	16.87%
DTE	67 Neutral	€134.00B	11.14	20.18%	3.28%	3.58%	103.26%
1U1	65 Neutral	€4.28B	33.62	2.07%	0.21%	-0.46%	-50.77%
UTDI	62 Neutral	€4.98B	35.67	2.15%	7.04%	-2.19%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSX	54 Neutral	€22.48M	28.00	5.37%	―	-0.92%	―