NFON (XTRA:NFN) - Share price, News & Analysis

NFN fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

NFN Stock Overview

NFON AG provides cloud-based telecommunication services to business customers in Germany, Austria, Italy, the United Kingdom, Spain, France, and Portugal.

Rewards

Revenue is forecast to grow 11.22% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

NFON Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NFON
Historical stock prices
Current Share Price	€11.75
52 Week High	€19.70
52 Week Low	€11.10
Beta	1.44
1 Month Change	-4.47%
3 Month Change	-12.96%
1 Year Change	-24.19%
3 Year Change	2.62%
5 Year Change	n/a
Change since IPO	-11.39%

Shareholder Returns

	NFN	DE Telecom	DE Market
7D	0%	2.9%	-0.1%
1Y	-24.2%	4.2%	-22.0%

Return vs Industry: NFN underperformed the German Telecom industry which returned 4.2% over the past year.

Return vs Market: NFN underperformed the German Market which returned -22% over the past year.

Price Volatility

Is NFN's price volatile compared to industry and market?
NFN volatility
NFN Average Weekly Movement	3.8%
Telecom Industry Average Movement	3.8%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	10.0%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: NFN is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NFN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	503	Klaus Rottkay	https://www.nfon.com

NFON AG provides cloud-based telecommunication services to business customers in Germany, Austria, Italy, the United Kingdom, Spain, France, and Portugal. It offers Cloudya and centrexx products for customers with the required brokerage service from the cloud in its data centers through the cloud private branch exchange; and telephone conference services. The company also provides various solutions, such as Nconnect voice for IP communications; Nconnect data, which allows Internet access; Ncontactcenter, a cloud contact centre solution, that facilitates customer support for various channels, agents, and locations; Nhospitality, which integrates cloud telephony into property management systems for hotel industry; Neorecording that allows companies to record conversations and retain them in a tamper-proof and encrypted environment; Nmonitoring Queues to monitor and track internal work performance; and Noperatorpanel, which provides a professional voice reception panel for customers to receive incoming calls and forward certain calls to their intended recipients.

NFON Fundamentals Summary

How do NFON's earnings and revenue compare to its market cap?
NFN fundamental statistics
Market Cap	€194.59m
Earnings (TTM)	-€10.63m
Revenue (TTM)	€77.28m

2.5x

P/S Ratio

-18.3x

P/E Ratio

Is NFN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NFN income statement (TTM)
Revenue	€77.28m
Cost of Revenue	€47.00m
Gross Profit	€30.28m
Other Expenses	€40.91m
Earnings	-€10.63m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 18, 2022

Earnings per share (EPS)	-0.64
Gross Margin	39.18%
Net Profit Margin	-13.76%
Debt/Equity Ratio	3.1%

How did NFN perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is NFN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NFN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for NFN. This is calculated by dividing NFN's market cap by their current preferred multiple.
What is NFN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€194.59m

NFN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	-22x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NFN's PS Ratio compare to its peers?

NFN PS Ratio vs Peers

The above table shows the PS ratio for NFN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.7x

Forward PS

Price-To-Sales vs Peers: NFN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (1.7x).

Price to Earnings Ratio vs Industry

How does NFN's PE Ratio compare vs other companies in the Telecom Industry?

Price-To-Sales vs Industry: NFN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the German Telecom industry average (1.1x)

Price to Sales Ratio vs Fair Ratio

What is NFN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NFN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.5x
Fair PS Ratio	1.7x

Price-To-Sales vs Fair Ratio: NFN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

Share Price vs Fair Value

What is the Fair Price of NFN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate NFN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NFN's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NFN's PEG Ratio to determine if it is good value.

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Future Growth

How is NFON forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

53.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: NFN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: NFN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: NFN's revenue (11.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: NFN's revenue (11.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NFN is forecast to be unprofitable in 3 years.

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Past Performance

How has NFON performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

3.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NFN is currently unprofitable.

Growing Profit Margin: NFN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NFN is unprofitable, but has reduced losses over the past 5 years at a rate of 3.4% per year.

Accelerating Growth: Unable to compare NFN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NFN is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (72.1%).

Return on Equity

High ROE: NFN has a negative Return on Equity (-17.26%), as it is currently unprofitable.

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Financial Health

How is NFON's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NFN's short term assets (€38.5M) exceed its short term liabilities (€15.3M).

Long Term Liabilities: NFN's short term assets (€38.5M) exceed its long term liabilities (€7.1M).

Debt to Equity History and Analysis

Debt Level: NFN has more cash than its total debt.

Reducing Debt: NFN's debt to equity ratio has reduced from 47.1% to 3.1% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NFN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NFN has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 18.6% each year

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Dividend

What is NFON current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate NFN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NFN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NFN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NFN's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NFN has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure

CEO

Klaus Rottkay (51 yo)

1.5yrs

Tenure

Dr. Klaus Von Rottkay serves as Chief Executive Officer at NFON AG since December 01, 2020 and its Member of Management Board. In 2006, he joined Microsoft Germany, where he was initially responsible for t...

Leadership Team

Experienced Management: NFN's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: NFN's board of directors are considered experienced (3.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31