XTRA:NFN

Stock Analysis Report

Executive Summary

NFON AG provides cloud private branch exchange (PBX) services in Germany, Austria, Italy, the United Kingdom, and Spain.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has NFON's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

NFN

-3.2%

DE Telecom

7.2%

DE Market


1 Year Return

-0.8%

NFN

-21.3%

DE Telecom

-17.5%

DE Market

Return vs Industry: NFN exceeded the German Telecom industry which returned -22.7% over the past year.

Return vs Market: NFN exceeded the German Market which returned -14.1% over the past year.


Shareholder returns

NFNIndustryMarket
7 Day-2.0%-3.2%7.2%
30 Day-21.8%-24.1%-22.3%
90 Day-6.6%-19.9%-26.1%
1 Year-0.8%-0.8%-17.0%-21.3%-14.9%-17.5%
3 Yearn/a-20.5%-33.1%-18.7%-25.7%
5 Yearn/a-19.5%-36.6%-17.8%-29.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NFON undervalued compared to its fair value and its price relative to the market?

43.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NFN (€9) is trading below our estimate of fair value (€15.95)

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


Price To Earnings Ratio

PE vs Industry: NFN is unprofitable, so we can't compare its PE Ratio to the Telecom industry average.

PE vs Market: NFN is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NFN is overvalued based on its PB Ratio (3.3x) compared to the DE Telecom industry average (1.1x).


Next Steps

Future Growth

How is NFON forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

45.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NFN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: NFN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NFN's is expected to become profitable in the next 3 years.

Revenue vs Market: NFN's revenue (15% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: NFN's revenue (15% 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.


Next Steps

Past Performance

How has NFON performed over the past 5 years?

-23.6%

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, and losses have increased over the past 5 years at a rate of -23.6% 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 (10.4%).


Return on Equity

High ROE: NFN has a negative Return on Equity (-24.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is NFON's financial position?


Financial Position Analysis

Short Term Liabilities: NFN's short term assets (€39.3M) exceed its short term liabilities (€25.7M).

Long Term Liabilities: NFN's short term assets (€39.3M) exceed its long term liabilities (€3.9M).


Debt to Equity History and Analysis

Debt Level: NFN's debt to equity ratio (36.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NFN's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NFN's debt is covered by short term assets (assets are 2.8x debt).


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: Insufficient data to determine if NFN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


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 payouts.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NFN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Hans Szymanski (56yo)

8.17s

Tenure

Mr. Hans Szymanski is Chief Executive Officer and Chief Financial Officer at NFON AG since July 1, 2016 and has been its Member of Management Board since 2012. Mr. Szymanski served as the Chief Executive O ...


Leadership Team

NamePositionTenureCompensationOwnership
Hans Szymanski
CEO, CFO & Member of Management Board8.17yrsno datano data
César Rodríguez
Chief Sales Officer & Member of Management Board2yrsno datano data
Jan-Peter Koopmann
CTO & Member of Management Board7.42yrsno datano data
Markus Stumpf
Vice President of Operations & Infrastructureno datano datano data
Sabina Prüser
Head of Investor Relationsno datano datano data
Thorsten Wehner
Vice President of Public Relationsno datano datano data
Jan Forster
Vice President of Marketing & Strategyno datano datano data
Joachim Fischer
Head of Partner Management AT & CEE1.92yrsno datano data
Gernot Hofstetter
Managing Director of Austria & CEE1.83yrsno datano data
Marco Pasculli
Managing Director of Italy1.17yrsno datano data

2.0yrs

Average Tenure

47yo

Average Age

Experienced Management: NFN's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Florian Schuhbauer
Member of Supervisory Board0.25yrno datano data
Günter Müller
Member of Supervisory Board0.25yrno datano data
Rainer Koppitz
Chairman of Supervisory Board1.92yrsno datano data
Rupert Doehner
Deputy Chairman of Supervisory Board1.92yrsno datano data

1.1yrs

Average Tenure

48yo

Average Age

Experienced Board: NFN's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 45%.


Top Shareholders

Company Information

NFON AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NFON AG
  • Ticker: NFN
  • Exchange: XTRA
  • Founded: 2007
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: €127.972m
  • Shares outstanding: 15.06m
  • Website: https://www.nfon.com

Number of Employees


Location

  • NFON AG
  • Machtlfinger Strasse 7
  • Munich
  • Bavaria
  • 81379
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NFNDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURMay 2018
NFNDUSE (Dusseldorf Stock Exchange)YesOrdinary Bearer SharesDEEURMay 2018
NFNXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURMay 2018

Biography

NFON AG provides cloud private branch exchange (PBX) services in Germany, Austria, Italy, the United Kingdom, and Spain. The company offers Cloudya cloud telephone system, a public multi-tenant PBX delivering servicing from the cloud; and specialist solutions. Its services enable communication for customers and their employees on various devices, including smartphones, tablets, personal computers, and desk phones. The company offers its products to small office/home office customers and large businesses through a network of distributors and dealers. NFON AG was founded in 2007 and is headquartered in Munich, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 23:18
End of Day Share Price2020/03/27 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.