freenet AG
freenet AG Fundamental Analysis
freenet AG (FRTAF) shows moderate financial fundamentals with a PE ratio of 13.26, profit margin of 10.81%, and ROE of 18.16%. The company generates $2.5B in annual revenue with weak year-over-year growth of -5.69%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FRTAF's fundamental strength across five key dimensions:
Efficiency Score
WeakFRTAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateFRTAF shows balanced valuation metrics.
Growth Score
ModerateFRTAF shows steady but slowing expansion.
Financial Health Score
ModerateFRTAF shows balanced financial health with some risks.
Profitability Score
ModerateFRTAF maintains healthy but balanced margins.
Key Financial Metrics
Is FRTAF Expensive or Cheap?
P/E Ratio
FRTAF trades at 13.26 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FRTAF's PEG of 4.89 indicates potential overvaluation.
Price to Book
The market values freenet AG at 2.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.25 times EBITDA. This is generally considered low.
How Well Does FRTAF Make Money?
Net Profit Margin
For every $100 in sales, freenet AG keeps $10.81 as profit after all expenses.
Operating Margin
Core operations generate 16.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.16 in profit for every $100 of shareholder equity.
ROA
freenet AG generates $8.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
freenet AG produces operating cash flow of $398.30M, showing steady but balanced cash generation.
Free Cash Flow
freenet AG generates strong free cash flow of $358.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.04 in free cash annually.
FCF Yield
FRTAF converts 10.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.68
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How FRTAF Stacks Against Its Sector Peers
| Metric | FRTAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.26 | 21.28 | Better (Cheaper) |
| ROE | 18.16% | 1116.00% | Weak |
| Net Margin | 10.81% | -55491.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 1.38 | Strong (Low Leverage) |
| Current Ratio | 0.68 | 1.61 | Weak Liquidity |
| ROA | 8.44% | -204827.00% (disorted) | Weak |
FRTAF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews freenet AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-9.04%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
39.19%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
9.57%
Industry Style: Growth, Technology, Streaming
Growing