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United Internet AG (DE:UTDI)
XETRA:UTDI

United Internet (UTDI) AI Stock Analysis

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United Internet

(XETRA:UTDI)

Rating:65Neutral
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 (UTDI) vs. iShares MSCI Germany ETF (EWG)

United Internet Business Overview & Revenue Model

Company DescriptionUnited 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 MoneyUnited 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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.39B6.33B6.21B5.92B5.65B5.37B
Gross Profit1.99B2.00B2.06B2.01B1.96B1.60B
EBITDA1.18B1.13B1.29B1.26B1.31B1.04B
Net Income-52.04M-47.58M232.72M367.20M416.47M290.55M
Balance Sheet
Total Assets11.97B11.94B11.25B10.36B9.67B9.23B
Cash, Cash Equivalents and Short-Term Investments184.77M131.54M49.44M53.48M129.23M153.44M
Total Debt2.98B3.89B3.27B2.81B2.35B1.94B
Total Liabilities6.38B6.39B5.69B5.06B4.75B4.32B
Stockholders Equity4.80B4.78B4.90B4.75B4.47B4.52B
Cash Flow
Free Cash Flow156.08M179.52M30.61M-83.86M597.88M478.71M
Operating Cash Flow913.05M954.12M828.50M597.52M887.63M925.74M
Investing Cash Flow-761.14M-765.60M-798.19M-703.54M-527.30M-361.07M
Financing Cash Flow-162.18M-101.75M-43.59M35.07M-386.10M-549.14M

United Internet Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.14
Price Trends
50DMA
22.96
Positive
100DMA
19.90
Positive
200DMA
17.60
Positive
Market Momentum
MACD
0.46
Positive
RSI
67.98
Neutral
STOCH
92.86
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
€4.66B-1.07%7.62%2.37%-123.95%
65
Neutral
£1.76B10.06-12.53%3.61%2.59%-474.71%
€154.28B12.6019.60%2.90%
€3.28B18.462.93%0.27%
€3.30B13.8018.97%7.10%
€26.30M-18.53%
€114.94M-291.14%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:UTDI
United Internet
25.14
5.52
28.13%
GB:0MPH
Deutsche Telekom
30.89
7.69
33.15%
GB:0E6Y
1&1 Drillisch AG
18.64
2.55
15.85%
GB:0MV2
freenet
27.76
3.83
16.01%
GB:0O45
LS Telcom
4.30
-4.70
-52.22%
GB:0R50
Tele Columbus
0.30
-0.21
-41.18%
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.Date of analysis: May 17, 2025