Announcement • Nov 12
1&1 AG Confirms Earnings Guidance for the Full Year 2025 1&1 AG confirmed earnings guidance for the full year 2025. For the year, the company confirms its service revenue and earnings forecast and expects for 2025 a stable contract base and service revenue at the previous year’s level (2024: €3,303.1 million). Announcement • Jun 30
1&1 AG Reaffirms Revenue Guidance for the Fiscal Year 2025 1&1 AG reaffirmed revenue guidance for the fiscal year 2025. For the year, the contract portfolio and service revenue are still expected to remain unchanged at the previous year’s level (2024: €3,303.1 million). Announcement • May 13
1&1 AG Confirms Earnings Guidance for the Financial Year 2025 1&1 AG confirmed earnings guidance for the financial year 2025. For the year, the company confirms its forecast and expects a stable contract base and service revenue at the previous year’s level for the 2025 fiscal year (2024: €3,303.1 million). Reported Earnings • Nov 13
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: €0.34 (down from €0.41 in 3Q 2023). Revenue: €1.00b (down 3.6% from 3Q 2023). Net income: €59.9m (down 18% from 3Q 2023). Profit margin: 6.0% (down from 7.0% in 3Q 2023). Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 09
Second quarter 2024 earnings released: EPS: €0.30 (vs €0.49 in 2Q 2023) Second quarter 2024 results: EPS: €0.30 (down from €0.49 in 2Q 2023). Revenue: €991.5m (up 2.0% from 2Q 2023). Net income: €53.8m (down 38% from 2Q 2023). Profit margin: 5.4% (down from 8.8% in 2Q 2023). Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 3.6% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to €12.30, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Wireless Telecom industry in Europe. Total loss to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €16.40 per share. Buy Or Sell Opportunity • Aug 05
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 26% to €12.30. The fair value is estimated to be €16.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.6%. For the next 3 years, revenue is forecast to grow by 2.2% per annum. Earnings are also forecast to grow by 0.6% per annum over the same time period. Upcoming Dividend • May 10
Upcoming dividend of €0.05 per share Eligible shareholders must have bought the stock before 17 May 2024. Payment date: 22 May 2024. Payout ratio is a comfortable 2.9% but the company is not cash flow positive. Trailing yield: 0.3%. Lower than top quartile of German dividend payers (4.6%). Lower than average of industry peers (8.4%). Reported Earnings • May 08
First quarter 2024 earnings released: EPS: €0.47 (vs €0.53 in 1Q 2023) First quarter 2024 results: EPS: €0.47 (down from €0.53 in 1Q 2023). Revenue: €1.02b (flat on 1Q 2023). Net income: €82.7m (down 12% from 1Q 2023). Profit margin: 8.1% (down from 9.2% in 1Q 2023). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, while revenues in the Wireless Telecom industry in Europe are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Declared Dividend • Mar 24
Dividend of €0.05 announced Dividend of €0.05 is the same as last year. Ex-date: 17th May 2024 Payment date: 21st May 2024 Dividend yield will be 0.3%, which is lower than the industry average of 3.6%. Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €18.22, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 13x in the Wireless Telecom industry in Europe. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €13.09 per share. Reported Earnings • Nov 12
Third quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2023 results: EPS: €0.41 (down from €0.56 in 3Q 2022). Revenue: €1.04b (up 4.0% from 3Q 2022). Net income: €73.0m (down 25% from 3Q 2022). Profit margin: 7.0% (down from 9.8% in 3Q 2022). Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 9.4%. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €16.08, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Wireless Telecom industry in Europe. Total loss to shareholders of 33% over the past three years. New Risk • Aug 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 9.0% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Reported Earnings • Aug 03
Second quarter 2023 earnings released: EPS: €0.49 (vs €0.55 in 2Q 2022) Second quarter 2023 results: EPS: €0.49 (down from €0.55 in 2Q 2022). Revenue: €972.1m (flat on 2Q 2022). Net income: €86.0m (down 12% from 2Q 2022). Profit margin: 8.8% (down from 10.0% in 2Q 2022). Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 1.5% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 10
Upcoming dividend of €0.05 per share at 0.5% yield Eligible shareholders must have bought the stock before 17 May 2023. Payment date: 22 May 2023. Payout ratio is a comfortable 2.4% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of German dividend payers (4.7%). Lower than average of industry peers (6.6%). Reported Earnings • Apr 16
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: €2.08 (down from €2.10 in FY 2021). Revenue: €3.96b (up 1.4% from FY 2021). Net income: €367.3m (flat on FY 2021). Profit margin: 9.3% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.5%. Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 1.3% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: €0.56 (vs €0.55 in 3Q 2021) Third quarter 2022 results: EPS: €0.56 (up from €0.55 in 3Q 2021). Revenue: €998.3m (up 2.8% from 3Q 2021). Net income: €97.8m (up 1.6% from 3Q 2021). Profit margin: 9.8% (in line with 3Q 2021). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 1.9% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • Nov 12
Third quarter 2022 earnings released: EPS: €0.56 (vs €0.55 in 3Q 2021) Third quarter 2022 results: EPS: €0.56 (up from €0.55 in 3Q 2021). Revenue: €998.3m (up 2.8% from 3Q 2021). Net income: €97.8m (up 1.6% from 3Q 2021). Profit margin: 9.8% (in line with 3Q 2021). Revenue is forecast to grow 1.9% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Wireless Telecom industry in Europe. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 16% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 05
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: €0.55 (up from €0.53 in 2Q 2021). Revenue: €976.1m (up 2.0% from 2Q 2021). Net income: €97.4m (up 4.1% from 2Q 2021). Profit margin: 10.0% (in line with 2Q 2021). Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 9.8%. Over the next year, revenue is forecast to grow 2.2%, compared to a 2.0% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 14% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 13
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: €0.58 (down from €0.65 in 1Q 2021). Revenue: €975.9m (flat on 1Q 2021). Net income: €101.6m (down 11% from 1Q 2021). Profit margin: 10% (down from 12% in 1Q 2021). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 15%. Over the next year, revenue is forecast to grow 2.7%, compared to a 1.7% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 11% per year and the company’s share price has also fallen by 11% per year. Upcoming Dividend • May 12
Upcoming dividend of €0.05 per share Eligible shareholders must have bought the stock before 19 May 2022. Payment date: 23 May 2022. Payout ratio is a comfortable 2.4% and this is well supported by cash flows. Trailing yield: 0.3%. Lower than top quartile of German dividend payers (4.2%). Lower than average of industry peers (6.7%). Reported Earnings • Mar 19
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: €2.10 (up from €1.25 in FY 2020). Revenue: €3.91b (up 3.2% from FY 2020). Net income: €370.0m (up 69% from FY 2020). Profit margin: 9.5% (up from 5.8% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.1%. Over the next year, revenue is forecast to grow 2.1%, compared to a 3.3% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 18% per year. Reported Earnings • Nov 10
Third quarter 2021 earnings released: EPS €0.55 (vs €0.32 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €971.4m (up 4.2% from 3Q 2020). Net income: €96.2m (up 73% from 3Q 2020). Profit margin: 9.9% (up from 6.0% in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 06
Second quarter 2021 earnings released: EPS €0.53 (vs €0.55 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings, although profit margins were flat and revenues improved. Second quarter 2021 results: Revenue: €956.9m (up 1.7% from 2Q 2020). Net income: €93.6m (down 3.0% from 2Q 2020). Profit margin: 9.8% (in line with 2Q 2020). Over the last 3 years on average, earnings per share has fallen by 18% per year whereas the company’s share price has fallen by 19% per year. Upcoming Dividend • May 20
Upcoming dividend of €0.05 per share Eligible shareholders must have bought the stock before 27 May 2021. Payment date: 31 May 2021. Trailing yield: 0.2%. Lower than top quartile of German dividend payers (3.2%). Lower than average of industry peers (5.0%). Reported Earnings • May 12
First quarter 2021 earnings released: EPS €0.65 (vs €0.50 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: €973.7m (up 3.5% from 1Q 2020). Net income: €113.7m (up 29% from 1Q 2020). Profit margin: 12% (up from 9.4% in 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 25% per year, which means it is performing significantly worse than earnings. Reported Earnings • Mar 27
Full year 2020 earnings released: EPS €1.25 (vs €2.12 in FY 2019) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: €3.79b (up 3.0% from FY 2019). Net income: €219.6m (down 41% from FY 2019). Profit margin: 5.8% (down from 10% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Is New 90 Day High Low • Mar 06
New 90-day high: €24.63 The company is up 19% from its price of €20.68 on 04 December 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Wireless Telecom industry, which is down 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €37.54 per share. Is New 90 Day High Low • Feb 06
New 90-day high: €21.90 The company is up 20% from its price of €18.19 on 06 November 2020. The German market is up 15% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Wireless Telecom industry, which is up 22% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €53.19 per share. Is New 90 Day High Low • Jan 05
New 90-day high: €21.20 The company is up 8.0% from its price of €19.71 on 07 October 2020. The German market is also up 8.0% over the last 90 days, indicating the company’s price trend is similar to the market over that time. However, it underperformed the Wireless Telecom industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €55.81 per share. Is New 90 Day High Low • Dec 20
New 90-day high: €21.10 The company is up 19% from its price of €17.66 on 21 September 2020. The German market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Wireless Telecom industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €35.47 per share. Analyst Estimate Surprise Post Earnings • Nov 11
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 3.3% compared to a 1.7% decline forecast for the Wireless Telecom industry in Germany. Reported Earnings • Nov 11
Third quarter 2020 earnings released: EPS €0.32 The company reported a poor third quarter result with weaker earnings and profit margins, although revenues were flat. Third quarter 2020 results: Revenue: €932.6m (flat on 3Q 2019). Net income: €55.6m (down 37% from 3Q 2019). Profit margin: 6.0% (down from 9.5% in 3Q 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 32% per year, which means it is significantly lagging earnings. Price Target Changed • Sep 30
Price target lowered to €28.08 Down from €30.32, the current price target is an average from 16 analysts. The new target price is 48% above the current share price of €18.99. As of last close, the stock is down 33% over the past year. Is New 90 Day High Low • Sep 22
New 90-day low: €17.66 The company is down 24% from its price of €23.25 on 24 June 2020. The German market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Wireless Telecom industry, which is down 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €43.06 per share.