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freenet
(XETRA:FNTN)
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Rating:74Outperform
Price Target:
€26.00
▼(-5.59% Downside)
Action:Upgraded
Date:05/17/26
The score is driven primarily by solid financial performance (renewed revenue growth, healthy margins, consistent free cash flow) and supportive valuation (moderate P/E and high dividend yield). Technical indicators add a modestly positive near-term signal but are less decisive over longer timeframes.
Positive Factors
Revenue and margin recovery
A return to 6.5% TTM revenue growth alongside industry-strong EBITDA (~20.6%) and net margins (~10.1%) indicates demand restoration and pricing/scale leverage. This durable top-line and margin profile supports sustained cash generation and reinvestment capacity over coming quarters.
Negative Factors
Margin volatility
Notable gross-margin swings and year-to-year margin variability undermine earnings predictability and complicate long-term planning. Structural margin volatility raises the risk that temporary revenue improvements won't translate into steady profits, affecting capital allocation and coverage of fixed costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin recovery
A return to 6.5% TTM revenue growth alongside industry-strong EBITDA (~20.6%) and net margins (~10.1%) indicates demand restoration and pricing/scale leverage. This durable top-line and margin profile supports sustained cash generation and reinvestment capacity over coming quarters.
Read all positive factors
freenet (FNTN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€2.67B
Dividend Yield6.73%
Average Volume (3M)273.15K
Price to Earnings (P/E)10.2
Beta (1Y)0.41
Revenue Growth6.31%
EPS Growth10.31%
CountryDE
Employees3,196
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.21
Shares Outstanding118,900,600
10 Day Avg. Volume242,957
30 Day Avg. Volume273,155
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)2.26
Price to Sales (P/S)1.42
P/FCF Ratio9.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€27.88Price Target Upside1.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.15
Revenue Forecast (FY)€3.16B
freenet Business Overview & Revenue Model
Company Description
freenet AG, established in 2005 and headquartered in Büdelsdorf, Germany, operates as a prominent provider of telecommunications, mobile internet, digital lifestyle, radio, and multimedia services within Germany. The company primarily specializes ...
freenet Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
76
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.44B | 2.48B | 2.63B | 2.56B | 2.56B |
| Gross Profit | 819.80M | 632.70M | 998.47M | 709.47M | 911.69M | 876.29M |
| EBITDA | 533.80M | 491.60M | 521.46M | 500.74M | 487.79M | 404.24M |
| Net Income | 261.50M | 271.20M | 246.80M | 154.60M | 79.30M | 198.17M |
Balance Sheet | ||||||
| Total Assets | 3.52B | 3.68B | 3.34B | 3.41B | 3.63B | 3.95B |
| Cash, Cash Equivalents and Short-Term Investments | 98.10M | 168.20M | 181.60M | 159.80M | 193.17M | 299.22M |
| Total Debt | 693.90M | 829.20M | 697.10M | 778.10M | 928.11M | 1.13B |
| Total Liabilities | 1.94B | 2.14B | 1.86B | 1.98B | 2.16B | 2.31B |
| Stockholders Equity | 1.58B | 1.53B | 1.49B | 1.44B | 1.47B | 1.64B |
Cash Flow | ||||||
| Free Cash Flow | 343.80M | 363.90M | 327.00M | 342.40M | 332.75M | 318.99M |
| Operating Cash Flow | 389.70M | 405.80M | 370.70M | 398.00M | 395.69M | 367.21M |
| Investing Cash Flow | -208.70M | -204.20M | -42.30M | -55.30M | -71.89M | -44.13M |
| Financing Cash Flow | -337.60M | -315.00M | -306.60M | -360.90M | -432.07M | -703.67M |
freenet Technical Analysis
Negative
27.54
Price Trends
25.05
Negative
25.62
Negative
25.84
Negative
Market Momentum
-0.63
Positive
23.09
Positive
5.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FNTN, the sentiment is Negative. The current price of 27.54 is above the 20-day moving average (MA) of 24.70, above the 50-day MA of 25.05, and above the 200-day MA of 25.84, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 23.09 is Positive, neither overbought nor oversold. The STOCH value of 5.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FNTN.
freenet Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €2.67B | 10.16 | 17.50% | 6.73% | 6.31% | 10.31% | |
62 Neutral | €116.17B | 13.35 | 14.36% | 3.28% | 1.37% | -26.06% | |
61 Neutral | €4.33B | 13.73 | 6.31% | 7.04% | -5.62% | ― | |
57 Neutral | €3.41B | 25.09 | 2.24% | 0.21% | 5.05% | -23.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | €774.58M | -5.33 | -13.85% | 1.03% | -7.96% | -1114.39% |
* General Sector Average
DE:FNTN
freenet
22.98
-2.50
-9.80%
DE:DTE
Deutsche Telekom
25.10
-4.95
-16.46%
DE:1U1
1&1 AG
19.66
1.06
5.71%
DE:PSM
ProSiebenSat.1 Media SE
3.53
-3.52
-49.96%
DE:TC1
Tele Columbus
0.51
0.09
21.43%
DE:UTDI
United Internet
23.50
0.21
0.90%
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.