United Internet (UTDI) AI Stock Analysis

• Market Cap: €4.56B
• Dividend Yield: 7.79%
• Average Volume (3M): 314.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 2.37%
• EPS Growth: -123.95%
• Country: DE
• Employees: 10,972
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 0.29
• Shares Outstanding: 192,000,000
• 10 Day Avg. Volume: 304,797
• 30 Day Avg. Volume: 314,745
• PEG Ratio: -0.82
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.06
• 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: €26.19
• Price Target Upside: 7.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: €24.50 ▲(0.41%Upside)

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 is a leading European internet services company, headquartered in Germany. The company operates through two main segments: Access and Applications. In the Access segment, United Internet provides broadband and mobile internet services to both private consumers and business clients, leveraging its strong brands such as 1&1. The Applications segment focuses on providing a range of internet-based services, including web hosting, cloud applications, and email solutions, catering to businesses and individual users worldwide.

How the Company Makes Money

United Internet makes money primarily through its Access and Applications segments. In the Access segment, revenue is generated from subscription fees paid by customers for broadband and mobile internet services. The company leverages its infrastructure and partnerships with network providers to deliver reliable connectivity solutions. The Applications segment contributes to revenue through subscription fees and service charges for its web hosting, cloud services, and professional email solutions. Additionally, United Internet benefits from economies of scale and cross-selling opportunities within its diverse service portfolio. Strategic partnerships and acquisitions also play a significant role in expanding its market reach and enhancing its service offerings.

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
	EBIT
596.29M	638.71M	753.96M	781.41M	829.86M	574.86M
	EBITDA
1.18B	1.13B	1.29B	1.26B	1.31B	1.04B
	Net Income Common Stockholders
-52.04M	-47.58M	232.72M	367.20M	416.47M	290.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
184.77M	131.54M	49.44M	53.48M	129.23M	153.44M
	Total Assets
11.97B	11.94B	11.25B	10.36B	9.67B	9.23B
	Total Debt
2.98B	3.89B	3.27B	2.81B	2.35B	1.94B
	Net Debt
2.94B	3.78B	3.24B	2.77B	2.24B	1.81B
	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: 24.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 24.4 is above the 20-day moving average (MA) of 23.50, above the 50-day MA of 20.20, and above the 200-day MA of 16.94, indicating a bullish trend. The MACD of 1.17 indicates Positive momentum. The RSI at 75.94 is Negative, neither overbought nor oversold. The STOCH value of 84.26 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
1U1	71 Outperform	€3.25B	18.32	2.93%	0.27%	-1.02%	-41.62%
DTE	66 Neutral	€152.79B	12.53	19.60%	2.95%	4.90%	176.57%
UTDI	65 Neutral	€4.56B	―	-1.07%	7.79%	2.37%	-123.95%
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
FNTN	61 Neutral	€3.26B	13.62	18.97%	6.79%	-7.04%	18.59%