OTCPK:FRTA.F

Stock Analysis Report

Executive Summary

freenet AG provides telecommunication, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany.

Snowflake

Fundamentals

Fair value second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

FRTA.F

1.6%

US Wireless Telecom

1.8%

US Market


1 Year Return

n/a

FRTA.F

3.2%

US Wireless Telecom

7.3%

US Market

Return vs Industry: Insufficient data to determine how FRTA.F performed against the US Wireless Telecom industry.

Return vs Market: Insufficient data to determine how FRTA.F performed against the US Market.


Shareholder returns

FRTA.FIndustryMarket
7 Day0%1.6%1.8%
30 Day0%-0.9%-0.7%
90 Dayn/a-2.8%0.06%
1 Yearn/a4.5%3.2%9.7%7.3%
3 Year-31.1%-31.1%34.5%29.6%46.3%36.9%
5 Year-21.5%-21.5%51.5%37.8%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: FRTA.F ($19.3) is trading below our estimate of fair value ($31.35)

Significantly Undervalued: FRTA.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FRTA.F is good value based on its PE Ratio (11.4x) compared to the Wireless Telecom industry average (22.1x).

PE vs Market: FRTA.F is good value based on its PE Ratio (11.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: FRTA.F is poor value based on its PEG Ratio (37.5x)


Price to Book Ratio

PB vs Industry: FRTA.F is overvalued based on its PB Ratio (2.1x) compared to the US Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is freenet forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRTA.F's forecast earnings growth (0.3% per year) is below the savings rate (2.7%).

Earnings vs Market: FRTA.F's earnings (0.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: FRTA.F's revenue (0.08% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FRTA.F's revenue (0.08% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FRTA.F's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has freenet performed over the past 5 years?

0.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FRTA.F's earnings have grown by 0.8% per year over the past 5 years.

Accelerating Growth: FRTA.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FRTA.F had negative earnings growth (-25.4%) over the past year, making it difficult to compare to the Wireless Telecom industry average (7.7%).


Return on Equity

High ROE: FRTA.F's Return on Equity (17.4%) is considered low.


Return on Assets

ROA vs Industry: FRTA.F has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: FRTA.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is freenet's financial position?


Financial Position Analysis

Short Term Liabilities: FRTA.F's short term assets (€707.2M) do not cover its short term liabilities (€1.2B)

Long Term Liabilities: FRTA.F's short term assets (707.2M) do not cover its long term liabilities (2.5B)


Debt to Equity History and Analysis

Debt Level: FRTA.F's debt to equity ratio (147.4%) is considered high

Reducing Debt: FRTA.F's debt to equity ratio has increased from 51.8% to 147.4% over the past 5 years.

Debt Coverage: FRTA.F's debt is well covered by operating cash flow (20.9%).

Interest Coverage: FRTA.F's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: FRTA.F's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

8.18%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%1.5%markettop25%3.7%industryaverage7.9%forecastin3Years7.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FRTA.F's dividend (8.18%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FRTA.F's dividend (8.18%) is in the top 25% of dividend payers in the US market (3.72%)

Stable Dividend: FRTA.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: FRTA.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.5%), FRTA.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRTA.F's dividends in 3 years are forecast to be covered by earnings (84.6% payout ratio).


Next Steps

Management

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

10.4yrs

Average management tenure


CEO

Christoph Vilanek (51yo)

10.4yrs

Tenure

€2,469,000

Compensation

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 Cec ...


CEO Compensation Analysis

Compensation vs. Market: Christoph's total compensation ($USD2.75M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Christoph's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.4yrs

Average Tenure

Experienced Management: FRTA.F's management team is seasoned and experienced (10.4 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

53.5yo

Average Age

Experienced Board: FRTA.F's board of directors are considered experienced (4.7 years average tenure).


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


Management Team

  • Stephan Esch

    CTO & Member of Executive Board

    • Tenure: 13.7yrs
    • Compensation: €1.24m
  • Claudia Anderleit (46yo)

    Head of Human Resource Management & Personal Systems and Member of Supervisory Board

    • Tenure: 11.3yrs
    • Compensation: €68.00k
  • Christoph Vilanek (51yo)

    Chairman of Executive Board & CEO

    • Tenure: 10.4yrs
    • Compensation: €2.47m
  • Ingo Arnold

    CFO & Member of Executive Board

    • Tenure: 0.8yrs
  • Nadline Mette

    Head of PR

    • Tenure: 0yrs
  • Nicole Enghardt-Gille

    Head of Group Human Resources

    • Tenure: 0yrs
  • Antonius Fromme

    Member of Executive Board & CCE

    • Tenure: 0yrs
    • Compensation: €600.00k
  • Rickmann Platen

    Member of Executive Board & Chief Commercial Officer

    • Tenure: 0yrs
    • Compensation: €601.00k
  • Tim-Frederik Oehr

    Head of Investor Relations

    • Tenure: 0yrs
  • Jan Sperlich

    Managing Director of GRAVIS

    • Tenure: 0yrs

Board Members

  • Helmut Thoma (80yo)

    Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €144.00k
  • Robert Weidinger (57yo)

    Member of Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €74.00k
  • Thorsten Kraemer (51yo)

    Member of Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €68.00k
  • Claudia Anderleit (46yo)

    Head of Human Resource Management & Personal Systems and Member of Supervisory Board

    • Tenure: 11.3yrs
    • Compensation: €68.00k
  • Marc Tüngler (51yo)

    Member of Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €69.00k
  • Knut Mackeprang (49yo)

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €102.00k
  • Sabine Christiansen (62yo)

    Member of Supervisory Board

    • Tenure: 4.7yrs
    • Compensation: €67.00k
  • Thomas Reimann (56yo)

    Member of Supervisory Board

    • Tenure: 2.5yrs
    • Compensation: €67.00k
  • Franzi Kuhne

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €64.00k
  • Theo-Benneke Bretsch

    Supervisory Board Member

    • Tenure: 1.4yrs
    • Compensation: €40.50k

Company Information

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


Key Information

  • Name: freenet AG
  • Ticker: FRTA.F
  • Exchange: OTCPK
  • Founded: 2005
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: €2.582b
  • Listing Market Cap: €2.871b
  • Shares outstanding: 128.06m
  • Website: https://www.freenet-group.de

Number of Employees


Location

  • freenet AG
  • Hollerstrasse 126
  • Büdelsdorf
  • Schleswig-Holstein
  • 24782
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNTNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1999
0MV2LSE (London Stock Exchange)YesOrdinary SharesGBEURDec 1999
FRTA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1999
FNTNXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURDec 1999
FNTNDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 1999
FNTNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 1999
FNTNWBAG (Wiener Boerse AG)YesOrdinary SharesATEURDec 1999

Biography

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 Me ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:05
End of Day Share Price2019/08/26 00:00
Earnings2019/06/30
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.