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freenet

DB:FNTN
Snowflake Description

Good value average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FNTN
DB
€3B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

freenet AG provides telecommunication, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. The last earnings update was 12 days ago. More info.


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FNTN Share Price and Events
7 Day Returns
-0.8%
DB:FNTN
-3%
Europe Wireless Telecom
0%
DE Market
1 Year Returns
18.5%
DB:FNTN
1.1%
Europe Wireless Telecom
9.9%
DE Market
FNTN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
freenet (FNTN) -0.8% 5.8% 22.4% 18.5% -13.8% -8%
Europe Wireless Telecom -3% -3.3% 2.2% 1.1% -14.3% -26.2%
DE Market 0% 4.6% 12.1% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • FNTN outperformed the Wireless Telecom industry which returned 1.1% over the past year.
  • FNTN outperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
FNTN
Industry
5yr Volatility vs Market
Related Companies

Value

 Is freenet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of freenet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for freenet.

DB:FNTN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FNTN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.337 (1 + (1- 30%) (86.49%))
0.692
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:FNTN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for freenet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:FNTN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 5%)
2020 282.38 Analyst x9 268.94
2021 264.09 Analyst x7 239.55
2022 245.50 Analyst x2 212.10
2023 234.13 Est @ -4.63% 192.65
2024 226.70 Est @ -3.17% 177.66
2025 221.82 Est @ -2.15% 165.56
2026 218.62 Est @ -1.44% 155.41
2027 216.57 Est @ -0.94% 146.63
2028 215.30 Est @ -0.59% 138.83
2029 214.56 Est @ -0.34% 131.77
Present value of next 10 years cash flows €1,829.00
DB:FNTN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €214.56 × (1 + 0.23%) ÷ (5% – 0.23%)
€4,510.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €4,510.17 ÷ (1 + 5%)10
€2,769.91
DB:FNTN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €1,829.00 + €2,769.91
€4,598.91
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €4,598.91 / 128.06
€35.91
DB:FNTN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FNTN represents 0.99766x of XTRA:FNTN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99766x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 35.91 x 0.99766
€35.83
Value per share (EUR) From above. €35.83
Current discount Discount to share price of €21.27
= -1 x (€21.27 - €35.83) / €35.83
40.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price freenet is available for.
Intrinsic value
41%
Share price is €21.27 vs Future cash flow value of €35.83
Current Discount Checks
For freenet to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • freenet's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • freenet's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for freenet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are freenet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FNTN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in EUR €1.90
XTRA:FNTN Share Price ** XTRA (2019-11-18) in EUR €21.32
Europe Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 22.75x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 20.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of freenet.

DB:FNTN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= XTRA:FNTN Share Price ÷ EPS (both in EUR)

= 21.32 ÷ 1.90

11.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • freenet is good value based on earnings compared to the Europe Wireless Telecom industry average.
  • freenet is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does freenet's expected growth come at a high price?
Raw Data
DB:FNTN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
1.2%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 2.38x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

DB:FNTN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.23x ÷ 1.2%

9.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • freenet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on freenet's assets?
Raw Data
DB:FNTN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in EUR €9.90
XTRA:FNTN Share Price * XTRA (2019-11-18) in EUR €21.32
Europe Wireless Telecom Industry PB Ratio Median Figure of 9 Publicly-Listed Wireless Telecom Companies 1.82x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.84x
DB:FNTN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= XTRA:FNTN Share Price ÷ Book Value per Share (both in EUR)

= 21.32 ÷ 9.90

2.15x

* Primary Listing of freenet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • freenet is overvalued based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess freenet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. freenet has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is freenet expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is freenet expected to grow at an attractive rate?
  • freenet's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • freenet's earnings growth is positive but not above the Germany market average.
  • freenet's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FNTN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FNTN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 1.2%
DB:FNTN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 0.3%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FNTN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FNTN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,094 1
2022-12-31 2,881 343 234 4
2021-12-31 2,904 353 226 10
2020-12-31 2,910 361 228 11
2019-12-31 2,898 361 218 11
2019-11-18
DB:FNTN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-09-30 2,961 394 243
2019-06-30 2,937 382 226
2019-03-31 2,934 387 233
2018-12-31 2,934 369 223
2018-09-30 3,090 333 186
2018-06-30 3,252 343 303
2018-03-31 3,395 362 291
2017-12-31 3,544 385 287
2017-09-30 3,534 405 319
2017-06-30 3,522 385 219
2017-03-31 3,491 395 222
2016-12-31 3,400 390 228

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • freenet's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
  • freenet's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FNTN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from freenet Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FNTN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.74 1.78 1.70 2.00
2021-12-31 1.81 1.99 1.48 9.00
2020-12-31 1.80 1.96 1.65 11.00
2019-12-31 1.77 1.94 1.59 10.00
2019-11-18
DB:FNTN Past Financials Data
Date (Data in EUR Millions) EPS *
2019-09-30 1.90
2019-06-30 1.76
2019-03-31 1.82
2018-12-31 1.74
2018-09-30 1.45
2018-06-30 2.37
2018-03-31 2.28
2017-12-31 2.24
2017-09-30 2.50
2017-06-30 1.71
2017-03-31 1.73
2016-12-31 1.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • freenet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess freenet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
freenet has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has freenet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare freenet's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • freenet's year on year earnings growth rate has been positive over the past 5 years.
  • freenet's 1-year earnings growth exceeds its 5-year average (31% vs 0.8%)
  • freenet's earnings growth has exceeded the Europe Wireless Telecom industry average in the past year (31% vs 21%).
Earnings and Revenue History
freenet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from freenet Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FNTN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 2,961.40 243.11 148.94
2019-06-30 2,936.59 225.92 148.94
2019-03-31 2,934.04 232.76 148.94
2018-12-31 2,933.67 223.14 148.94
2018-09-30 3,090.03 185.59 167.78
2018-06-30 3,252.16 303.02 167.78
2018-03-31 3,395.13 291.39 167.78
2017-12-31 3,544.29 286.67 167.78
2017-09-30 3,534.44 319.44 157.71
2017-06-30 3,521.76 219.27 157.71
2017-03-31 3,490.69 221.91 157.71
2016-12-31 3,399.84 228.42 157.71
2016-09-30 3,265.63 215.02 130.00
2016-06-30 3,186.17 217.32 130.00
2016-03-31 3,129.90 216.75 130.00
2015-12-31 3,129.36 220.97 130.00
2015-09-30 3,136.51 239.70 128.86
2015-06-30 3,111.38 244.10 128.86
2015-03-31 3,085.04 246.10 128.86
2014-12-31 3,053.92 247.47 128.86
2014-09-30 3,039.68 240.17 125.00
2014-06-30 3,066.24 237.57 125.00
2014-03-31 3,147.28 236.06 125.00
2013-12-31 3,204.08 238.94 125.00
2013-09-30 3,198.86 221.01 138.07
2013-06-30 3,163.33 206.28 138.07
2013-03-31 3,109.85 192.71 138.07
2012-12-31 3,091.83 173.10 138.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • freenet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • freenet used its assets less efficiently than the Europe Wireless Telecom industry average last year based on Return on Assets.
  • freenet's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess freenet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
freenet has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is freenet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up freenet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • freenet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • freenet's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of freenet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from freenet Company Filings, last reported 1 month ago.

DB:FNTN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 1,281.03 1,784.73 224.47
2019-06-30 1,242.03 1,831.22 205.80
2019-03-31 1,381.37 1,736.35 227.36
2018-12-31 1,280.75 1,722.90 161.24
2018-09-30 1,315.31 1,956.33 550.98
2018-06-30 1,327.03 1,674.93 468.41
2018-03-31 1,473.61 1,672.68 552.46
2017-12-31 1,462.90 1,673.15 337.07
2017-09-30 1,441.43 1,739.53 333.74
2017-06-30 1,288.93 1,735.49 260.51
2017-03-31 1,445.63 1,733.39 356.40
2016-12-31 1,402.27 1,734.17 334.64
2016-09-30 1,329.49 1,734.27 260.52
2016-06-30 1,273.90 1,730.88 204.02
2016-03-31 1,426.93 1,914.73 503.43
2015-12-31 1,379.04 638.91 284.20
2015-09-30 1,280.07 633.02 203.68
2015-06-30 1,217.33 624.40 124.09
2015-03-31 1,345.98 546.61 172.99
2014-12-31 1,293.62 538.38 111.94
2014-09-30 1,234.76 563.49 91.53
2014-06-30 1,168.49 654.21 108.87
2014-03-31 1,296.99 546.17 121.26
2013-12-31 1,239.58 537.60 110.77
2013-09-30 1,179.24 572.66 100.72
2013-06-30 1,115.68 664.25 127.08
2013-03-31 1,239.22 625.26 203.82
2012-12-31 1,177.55 655.92 204.62
  • freenet's level of debt (139.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.9% vs 139.3% today).
  • Debt is well covered by operating cash flow (22.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess freenet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. freenet has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is freenet's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.74%
Current annual income from freenet dividends. Estimated to be 7.32% next year.
If you bought €2,000 of freenet shares you are expected to receive €155 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • freenet's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.33%).
  • freenet's dividend is above the markets top 25% of dividend payers in Germany (3.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FNTN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FNTN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.44 4.00
2021-12-31 1.53 12.00
2020-12-31 1.54 13.00
2019-12-31 1.65 13.00
2019-11-18
DB:FNTN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.650 8.997
2018-05-17 1.650 8.139
2017-06-01 1.600 5.614
2016-05-06 1.600 6.040
2016-05-04 1.600 6.088
2016-03-29 1.600 6.036
2016-03-03 1.600 5.837
2015-05-21 1.500 5.060
2014-03-27 1.450 6.168
2014-02-27 1.450 6.001
2013-05-23 1.350 7.039
2012-08-08 1.000 6.739
2012-05-10 1.200 10.356
2011-03-24 0.800 8.451
2011-02-22 0.800 9.900
2010-07-06 0.200 2.447

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • freenet has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but freenet only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of freenet's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess freenet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can freenet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. freenet has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of freenet's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Christoph Vilanek
COMPENSATION €2,469,000
AGE 51
TENURE AS CEO 10.5 years
CEO Bio

Mr. Christoph Vilaneke serves as the Managing Director at freenet digital GmbH and iLove GmbH. He also acts as advisor at Remagine Ventures. Mr. Vilanek serves as the Member of the Supervisory Board at Ceconomy AG since May 2019. Mr. Vilanek has been the Chief Executive Officer of freenet AG, Büdelsdorf since May 1, 2009 and its Chairman of Executive Board since February 21, 2014. He served as Managing Director of Ravensburger Interactive Media GmbH from 2000 to 2001. Mr. Vilanek served as Vice President Customer Care, Customer Management at debitel AG in Stuttgart from 2005 to 2008. He served as Managing Director of the online fashion business at boo.com GmbH from 1999 to 2000. He served as Marketing Director of Meister Verlag from 1997 to 1998. He served as Head of Electronic Publishing at Gräfe und Unzer Verlag from 1995 to 1997. He served as a Joint Managing Director of iPUBLISH GmbH from 2004 to 2005. His foremost achievement was to substantially reduce customer churn rates while also reducing customer retention costs. He began his career at Time-Life International GmbH in 1991 and continued to work in mail-order retail for ten years and served as its Director Business Development until 1995. He served as a Consultant for the German and Eastern European telecommunications sector for McKinsey & Co. and Engagement Manager from 2001 to 2004. He has been the Chairman of the Board of Directors at EXARING AG since 2015. He has been the Chairman of Supervisory Board at Ströer SE & Co. KGaA (alternate name, Ströer SE) since June 2014 and has been its Member of Supervisory Board since April 10, 2013. He served as a Member of the Supervisory Board at gamigo AG since September 29, 2015 until February 21, 2018. He has been a Non-Executive Director of Sunrise Communications Group AG since April 15, 2016. He has been a Non-Executive Director of Netzpiloten AG since 1999 to March 2017. He has experience of working with MEDIA BROADCAST GmbH, Cologne; mobilcom-debitel GmbH, Büdelsdorf and Ströer Management SE, Düsseldorf holding Membership in statutory Supervisory boards. Mr. Vilanek is an Economist by training. He studied Magister Business Administration from Leopold Franzens University in Innsbruck Austria in 1991.

CEO Compensation
  • Christoph's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Christoph's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the freenet management team in years:

10.5
Average Tenure
  • The average tenure for the freenet management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Christoph Vilanek

TITLE
Chairman of Executive Board & CEO
COMPENSATION
€2M
AGE
51
TENURE
10.5 yrs

Stephan Esch

TITLE
CTO & Member of Executive Board
COMPENSATION
€1M
TENURE
13.8 yrs

Antonius Fromme

TITLE
Member of Executive Board & CCE
COMPENSATION
€600K

Rickmann Platen

TITLE
Member of Executive Board & Chief Commercial Officer
COMPENSATION
€601K

Claudia Anderleit

TITLE
Head of Human Resource Management & Personal Systems and Member of Supervisory Board
COMPENSATION
€68K
AGE
46

Ingo Arnold

TITLE
CFO & Member of Executive Board
TENURE
0.9 yrs

Tim-Frederik Oehr

TITLE
Head of Investor Relations

Nadline Mette

TITLE
Head of PR

Nicole Enghardt-Gille

TITLE
Head of Group Human Resources

Jan Sperlich

TITLE
Managing Director of GRAVIS
Board of Directors Tenure

Average tenure and age of the freenet board of directors in years:

4.8
Average Tenure
53.5
Average Age
  • The tenure for the freenet board of directors is about average.
Board of Directors

Helmut Thoma

TITLE
Chairman of Supervisory Board
COMPENSATION
€144K
AGE
80
TENURE
2.4 yrs

Knut Mackeprang

TITLE
Vice Chairman of Supervisory Board
COMPENSATION
€102K
AGE
49

Claudia Anderleit

TITLE
Head of Human Resource Management & Personal Systems and Member of Supervisory Board
COMPENSATION
€68K
AGE
46
TENURE
11.3 yrs

Thorsten Kraemer

TITLE
Member of Supervisory Board
COMPENSATION
€68K
AGE
51
TENURE
7.5 yrs

Robert Weidinger

TITLE
Member of Supervisory Board
COMPENSATION
€74K
AGE
57
TENURE
7.5 yrs

Marc Tüngler

TITLE
Member of Supervisory Board
COMPENSATION
€69K
AGE
51
TENURE
7.5 yrs

Sabine Christiansen

TITLE
Member of Supervisory Board
COMPENSATION
€67K
AGE
62
TENURE
4.8 yrs

Thomas Reimann

TITLE
Member of Supervisory Board
COMPENSATION
€67K
AGE
56
TENURE
2.6 yrs

Franzi Kuhne

TITLE
Member of Supervisory Board
COMPENSATION
€64K
TENURE
2.4 yrs

Theo-Benneke Bretsch

TITLE
Supervisory Board Member
COMPENSATION
€41K
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess freenet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. freenet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

freenet AG (FRA:FNTN): What Does The Future Look Like?

After freenet AG's (FRA:FNTN) recent earnings announcement in March 2019, analyst forecasts seem bearish, as a 5.6% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 1.3%. … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of FNTN's earnings growth over these next few years. … DB:FNTN Past and Future Earnings, August 8th 2019 By 2022, FNTN's earnings should reach €221m, from current levels of €223m, resulting in an annual growth rate of 2.1%.

Simply Wall St -

Is freenet (FRA:FNTN) Using Too Much Debt?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … The first step when considering a company's debt levels is to consider its cash and debt together. … DB:FNTN Historical Debt, August 2nd 2019 A Look At freenet's Liabilities According to the last reported balance sheet, freenet had liabilities of €1.06b due within 12 months, and liabilities of €2.54b due beyond 12 months.

Simply Wall St -

Does freenet AG's (FRA:FNTN) CEO Pay Matter?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for freenet How Does Christoph Vilanek's Compensation Compare With Similar Sized Companies? … Our data indicates that freenet AG is worth €2.3b, and total annual CEO compensation is €2.5m.

Simply Wall St -

Does The freenet AG (FRA:FNTN) Share Price Fall With The Market?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

freenet AG (FRA:FNTN) Investors Should Think About This Before Buying It For Its Dividend

Is freenet AG (FRA:FNTN) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. Unfortunately, it's common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments. In this case, freenet likely looks attractive to dividend investors, given its 9.4% dividend yield and nine-year payment history. We'd agree the yield does look enticing. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on freenet! DB:FNTN Historical Dividend Yield, June 17th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. freenet paid out 91% of its profit as dividends, over the trailing twelve month period. This is quite a high payout ratio that suggests the dividend is not well covered by earnings. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. freenet paid out 63% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. It's good to see that while freenet's dividends were not well covered by profits, at least they are affordable from a free cash flow perspective. Still, if the company continues paying out such a high percentage of its profits, the dividend could be at risk if business turns sour. Is freenet's Balance Sheet Risky? As freenet's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … While there may be fluctuations in the past , freenet's earnings per share have basically not grown from where they were five years ago. … Earnings per share are down, and freenet's dividend has been cut at least once in the past, which is disappointing.

Simply Wall St -

Did You Manage To Avoid freenet's (FRA:FNTN) 23% Share Price Drop?

Investors in freenet AG (FRA:FNTN) have tasted that bitter downside in the last year, as the share price dropped 23%. … This proportional reduction in earnings per share isn't far from the 23% decrease in the share price. … Instead, the change in the share price seems to reduction in earnings per share, alone.

Simply Wall St -

A Closer Look At freenet AG's (FRA:FNTN) Impressive ROE

Our data shows freenet has a return on equity of 17% for the last year. … One way to conceptualize this, is that for each €1 of shareholders' equity it has, the company made €0.17 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Has freenet AG (FRA:FNTN) Been Employing Capital Shrewdly?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

How Do Analysts See freenet AG (FRA:FNTN) Performing In The Next Couple Of Years?

The most recent earnings release freenet AG's (FRA:FNTN) announced in December 2018a … signalled

Simply Wall St -

freenet AG (FRA:FNTN): Poised For Long Term Success?

In September 2018, freenet AG (FRA:FNTN) announced its earnings update. … with earnings expected to grow by 25% in the upcoming year … the past 5-year average growth rate of 2.5%

Simply Wall St -

Company Info

Description

freenet AG provides telecommunication, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. The company operates through Mobile Communications, TV and Media, and Other/Holding segments. It provides a portfolio of services and products primarily in the area of mobile voice and data services. The company offers its postpaid services under the mobilcom-debitel brand; and no-frills services under the klarmobil, freenetMobile, callMobile, and debitel light brands, as well as provides prepaid and landline services. It also supplies digital applications related to home automation and security, health, data security, and entertainment and infotainment, including smart phones, tablets, notebooks, and accessories. In addition, the company offers services related to IPTV, including planning, project management, installation, operation, services, and marketing of broadcast-related solutions for business-clients in the radio and media sectors, as well as DVB-T2 services for end users; high-definition digital TV services, including Freenet TV for terrestrial TV and waipu.tv for IPTV entertainment; payment services for end customers; and digital products and entertainment formats for downloading, displaying, and use on mobile devices. Further, it distributes and sells mobile communications devices and additional services for mobile data communications and digital lifestyle; and offers e-commerce/advertising services, as well as develops and provides communication and IT solutions, and other services for corporate customers. It operates approximately 550 mobilcom-debitel stores, as well as operates GRAVIS stores for digital lifestyle products. The company also sells its products through approximately 400 electronic stores; and online platforms. freenet AG was founded in 2005 and is headquartered in Büdelsdorf, Germany.

Details
Name: freenet AG
FNTN
Exchange: DB
Founded: 2005
€2,728,980,250
128,061,016
Website: http://www.freenet-group.de
Address: freenet AG
Hollerstrasse 126,
Büdelsdorf,
Schleswig-Holstein, 24782,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
XTRA FNTN Ordinary Shares XETRA Trading Platform DE EUR 10. Dec 1999
OTCPK FRTA.F Ordinary Shares Pink Sheets LLC US USD 10. Dec 1999
DB FNTN Ordinary Shares Deutsche Boerse AG DE EUR 10. Dec 1999
LSE 0MV2 Ordinary Shares London Stock Exchange GB EUR 10. Dec 1999
SWX FNTN Ordinary Shares SIX Swiss Exchange CH CHF 10. Dec 1999
WBAG FNTN Ordinary Shares Wiener Boerse AG AT EUR 10. Dec 1999
BATS-CHIXE FNTND Ordinary Shares BATS 'Chi-X Europe' GB EUR 10. Dec 1999
Number of employees
Current staff
Staff numbers
4,222
freenet employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 21:02
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/15
Last earnings filing: 2019/11/06
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.