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1&1 AG
(XETRA:1U1)
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Rating:56Neutral
Price Target:
€24.50
▲(6.29% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid financial stability (low leverage) but meaningfully pressured profitability and only modest/volatile free cash flow. Technicals are a secondary drag due to weak trend and negative MACD, while valuation is supported by an exceptionally high dividend yield despite a higher P/E.
Positive Factors
Recurring subscription model
Recurring subscription revenue gives 1&1 a foundation of repeat customer payments across mobile and broadband services. This supports revenue visibility, enables ongoing customer relationships, and can provide a durable base for cross-selling options and upgrades over the next several quarters.
Negative Factors
Margin compression
Sharp contraction in net and operating margins shows that revenue growth is translating into less profit than in prior periods. Persistently weaker margins could reduce reinvestment capacity, limit operating leverage, and make earnings more sensitive to changes in service and access costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription model
Recurring subscription revenue gives 1&1 a foundation of repeat customer payments across mobile and broadband services. This supports revenue visibility, enables ongoing customer relationships, and can provide a durable base for cross-selling options and upgrades over the next several quarters.
Read all positive factors
1&1 AG (1U1) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.00B
Dividend Yield0.21%
Average Volume (3M)43.03K
Price to Earnings (P/E)34.7
Beta (1Y)0.26
Revenue Growth8.49%
EPS Growth-19.56%
CountryDE
Employees4,602
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.68
Shares Outstanding212,117,580
10 Day Avg. Volume23,298
30 Day Avg. Volume43,032
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)0.73
Price to Sales (P/S)1.06
P/FCF Ratio26.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€26.53Price Target Upside15.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.79
Revenue Forecast (FY)€4.57B
1&1 AG Business Overview & Revenue Model
Company Description
1&1 AG, together with its subsidiaries, operates as a telecommunications provider in Germany. It operates through three segments: Access; 1&1 Mobile Network; and 1&1 Versatel. The company offers mobile internet, broadband products, and related app...
How the Company Makes Money
1&1 AG makes money mainly by charging recurring subscription fees for telecommunications services. Its largest revenue stream is typically mobile services: customers pay monthly plan fees for voice and data access, and the company also earns from ...
1&1 AG Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.40B | 4.14B | 4.06B | 4.10B | 3.96B | 3.91B |
| Gross Profit | 937.40M | 853.82M | 1.04B | 1.16B | 1.23B | 1.20B |
| EBITDA | 605.61M | 493.69M | 607.13M | 673.80M | 698.09M | 712.10M |
| Net Income | 121.54M | 165.70M | 212.76M | 314.95M | 367.33M | 370.02M |
Balance Sheet | ||||||
| Total Assets | 10.92B | 11.01B | 8.13B | 7.74B | 7.26B | 7.06B |
| Cash, Cash Equivalents and Short-Term Investments | 6.83M | 21.69M | 14.04M | 3.73M | 5.13M | 5.79M |
| Total Debt | 0.00 | 1.11B | 412.96M | 260.55M | 102.67M | 102.28M |
| Total Liabilities | 4.90B | 5.01B | 2.04B | 1.85B | 1.68B | 1.84B |
| Stockholders Equity | 6.02B | 6.00B | 6.09B | 5.89B | 5.58B | 5.22B |
Cash Flow | ||||||
| Free Cash Flow | 186.73M | 165.50M | 20.46M | -70.14M | -68.82M | 394.56M |
| Operating Cash Flow | 699.87M | 576.31M | 311.42M | 225.58M | 180.57M | 431.96M |
| Investing Cash Flow | -739.40M | -812.79M | -180.80M | -125.23M | -97.42M | -350.57M |
| Financing Cash Flow | 41.38M | 240.04M | -129.68M | -101.83M | -83.03M | -81.20M |
1&1 AG Technical Analysis
Positive
23.05
Price Trends
23.46
Positive
22.04
Positive
23.02
Positive
Market Momentum
0.12
Positive
48.27
Neutral
64.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:1U1, the sentiment is Positive. The current price of 23.05 is below the 20-day moving average (MA) of 23.75, below the 50-day MA of 23.46, and above the 200-day MA of 23.02, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:1U1.
1&1 AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €120.23B | 14.04 | 14.02% | 3.98% | 2.21% | -30.39% | |
70 Outperform | €2.63B | 11.06 | 16.14% | 9.18% | 9.90% | -6.66% | |
56 Neutral | €5.00B | 34.69 | 2.01% | 0.21% | 8.49% | -19.56% | |
56 Neutral | €4.40B | 13.25 | 6.62% | 2.12% | -7.60% | 149.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
DE:1U1
1&1 AG
23.65
1.40
6.29%
DE:DTE
Deutsche Telekom
25.14
-2.96
-10.53%
DE:FNTN
freenet
22.56
-2.68
-10.61%
DE:TC1
Tele Columbus
0.11
-0.31
-73.33%
DE:O2D
Telefonica Deutschland Holding
1.80
-0.18
-9.09%
DE:UTDI
United Internet
23.58
-4.12
-14.89%
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.