XTRA:DRI

Stock Analysis Report

Executive Summary

1&1 Drillisch AG, together with its subsidiaries, operates as a telecommunications provider in Germany.

Rewards

Trading at 89.8% below its fair value

Earnings are forecast to grow 5.09% per year

Earnings grew by 21% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Deutsche Telekom

XTRA:DTE

Share Price & News

How has 1&1 Drillisch's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.5%

DRI

-4.5%

DE Wireless Telecom

-0.3%

DE Market


1 Year Return

-47.0%

DRI

-8.8%

DE Wireless Telecom

14.9%

DE Market

Return vs Industry: DRI underperformed the German Wireless Telecom industry which returned -8.8% over the past year.

Return vs Market: DRI underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

DRIIndustryMarket
7 Day-4.5%-4.5%-0.3%
30 Day-2.4%-6.7%0.08%
90 Day-19.7%-4.9%7.5%
1 Year-46.9%-47.0%-4.4%-8.8%18.4%14.9%
3 Yearn/a-0.5%-16.6%20.0%9.5%
5 Yearn/a-0.3%-25.7%38.0%19.3%

Price Volatility Vs. Market

How volatile is 1&1 Drillisch's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 1&1 Drillisch undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DRI (€22.94) is trading below our estimate of fair value (€225.53)

Significantly Below Fair Value: DRI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DRI is good value based on its PE Ratio (10.3x) compared to the Wireless Telecom industry average (21.4x).

PE vs Market: DRI is good value based on its PE Ratio (10.3x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: DRI is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DRI is good value based on its PB Ratio (0.9x) compared to the XE Wireless Telecom industry average (1.5x).


Next Steps

Future Growth

How is 1&1 Drillisch forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRI's forecast earnings growth (5.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: DRI's earnings (5.1% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: DRI's earnings are forecast to grow, but not significantly.

Revenue vs Market: DRI's revenue (2% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: DRI's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRI's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has 1&1 Drillisch performed over the past 5 years?

21.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: DRI has high quality earnings.

Growing Profit Margin: DRI's current net profit margins (10.6%) are higher than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if DRI's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare DRI's past year earnings growth to its 5-year average.

Earnings vs Industry: DRI earnings growth over the past year (21%) exceeded the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: DRI's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 1&1 Drillisch's financial position?


Financial Position Analysis

Short Term Liabilities: DRI's short term assets (€1.2B) exceed its short term liabilities (€510.2M).

Long Term Liabilities: DRI's short term assets (€1.2B) do not cover its long term liabilities (€1.3B).


Debt to Equity History and Analysis

Debt Level: DRI is debt free.

Reducing Debt: DRI had no debt 5 years ago.

Debt Coverage: DRI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: DRI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: DRI has a low level of unsold assets or inventory.

Debt Coverage by Assets: DRI's debt is not covered by short term assets (assets are -49.8x debt).


Next Steps

Dividend

What is 1&1 Drillisch's current dividend yield, its reliability and sustainability?

7.85%

Current Dividend Yield


Dividend Yield vs Market

company7.8%marketbottom25%1.4%markettop25%3.6%industryaverage5.0%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: DRI's dividend (7.85%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: DRI's dividend (7.85%) is in the top 25% of dividend payers in the German market (3.6%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, DRI has been paying a dividend for less than 10 years.

Growing Dividend: DRI's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), DRI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DRI's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

What is the CEO of 1&1 Drillisch's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Ralph Dommermuth (56yo)

1.9yrs

Tenure

0

Mr. Ralph Dommermuth is Chief Executive Officer and Chairman of the Management Board at 1&1 Drillisch AG since January 1, 2018. Mr. Dommermuth founded 1&1 Internet, Inc. in 1992 and serves as its Chief Mar ...


Management Age and Tenure

1.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: DRI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: DRI's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.6%.


Management Team

  • Ralph Dommermuth (56yo)

    CEO & Chairman of Management Board

    • Tenure: 1.9yrs
  • Oliver Keil

    Head of Investor Relations

    • Tenure: 0yrs
  • André Driesen (50yo)

    CFO & Member of Management Board

    • Tenure: 4.7yrs
    • Compensation: €863.00k
  • Alessandro Nava (47yo)

    Member of the Management Board

    • Tenure: 0.4yrs
  • Markus Huhn (51yo)

    Member of Management Board

    • Tenure: 0.9yrs

Board Members

  • Michael Scheeren (62yo)

    Chairman of Supervisory Board

    • Tenure: 2.1yrs
  • Kai-Uwe Ricke (58yo)

    Deputy Chairperson of Supervisory Board

    • Tenure: 2.1yrs
  • Kurt Dobitsch (65yo)

    Member of Supervisory Board

    • Tenure: 2.2yrs
  • Vlasios Choulidis (61yo)

    Member of Supervisory Board

    • Tenure: 1.9yrs
  • Norbert Lang (58yo)

    Member of Supervisory Board

    • Tenure: 4.1yrs
  • Claudia Borgas-Herold (56yo)

    Member of Supervisory Board

    • Tenure: 1.9yrs

Company Information

1&1 Drillisch AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 1&1 Drillisch AG
  • Ticker: DRI
  • Exchange: XTRA
  • Founded: 1988
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: €4.065b
  • Shares outstanding: 176.26m
  • Website: https://www.1und1-drillisch.de

Number of Employees


Location

  • 1&1 Drillisch AG
  • Wilhelm-Roentgen-Strasse 1-5
  • Maintal
  • Hessen
  • 63477
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRIWBAG (Wiener Boerse AG)YesShare CapitalATEURSep 2017
DRIDB (Deutsche Boerse AG)YesShare CapitalDEEURSep 2017
DRIXTRA (XETRA Trading Platform)YesShare CapitalDEEURSep 2017
0E6YLSE (London Stock Exchange)YesShare CapitalGBEURSep 2017
DRIDBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBEURSep 2017
DRISWX (SIX Swiss Exchange)YesShare CapitalCHCHFSep 2017

Biography

1&1 Drillisch AG, together with its subsidiaries, operates as a telecommunications provider in Germany. The company operates in two segments, Access and Other. It provides its customers with a portfolio of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 22:19
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.