OTCPK:UDIR.F

Stock Analysis Report

Executive Summary

United Internet AG, through its subsidiaries, operates as an Internet service provider.

Snowflake

Fundamentals

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

UDIR.F

-1.1%

US Telecom

-0.2%

US Market


1 Year Return

n/a

UDIR.F

7.0%

US Telecom

1.1%

US Market

No trading data on UDIR.F.

No trading data on UDIR.F.


Share holder returns

UDIR.FIndustryMarket
7 Day0%-1.1%-0.2%
30 Day0%5.6%2.5%
90 Dayn/a8.8%1.6%
1 Yearn/a12.7%7.0%3.4%1.1%
3 Year-20.3%-20.3%14.4%-2.2%45.2%35.8%
5 Year-21.3%-21.3%34.8%3.9%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is United Internet undervalued based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

United Internet's share price is below the future cash flow value, and at a moderate discount (> 20%).

United Internet's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

United Internet is overvalued based on earnings compared to the US Telecom industry average.

United Internet is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

United Internet is poor value based on expected growth next year.


Price Based on Value of Assets

United Internet is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is United Internet expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

United Internet's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

United Internet's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

United Internet's revenue growth is positive but not above the United States of America market average.

United Internet's earnings growth is positive but not above the United States of America market average.

United Internet's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

United Internet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has United Internet performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

United Internet's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

United Internet's 1-year earnings growth is negative, it can't be compared to the 5-year average.

United Internet's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

United Internet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

United Internet used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

United Internet's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is United Internet's financial position?


Financial Position Analysis

United Internet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

United Internet's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

United Internet's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (89.2% vs 37.9% today).

Debt is well covered by operating cash flow (31%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 28.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

2.28%

Expected Dividend Yield


Dividend Yield and Payments Analysis

United Internet's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

United Internet's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

United Internet is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

United Internet is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of United Internet's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).


Next Steps

Management

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


CEO

Ralph Dommermuth (56yo)

31.7yrs

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 ...


CEO Compensation Analysis

Ralph's remuneration is lower than average for companies of similar size in United States of America.

Ralph's compensation has been consistent with company performance over the past year, both up more than 20%.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ralph Dommermuth (56yo)

    Founder

    • Tenure: 31.7yrs
  • Marcus Schaps

    Head of Press and Public Relations

    • Tenure: 0yrs
  • Frank Krause (54yo)

    CFO & Member of the Management Board

    • Tenure: 4.3yrs
    • Compensation: €511.00k
  • Stephan Gramkow

    Investor Relations Officer

    • Tenure: 0yrs
  • Dominic Grossman

    Senior Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Michael Scheeren (62yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €19.00k
  • Kai-Uwe Ricke (58yo)

    Member of the Supervisory Board

    • Tenure: 11.6yrs
    • Compensation: €19.00k
  • Kurt Dobitsch (65yo)

    Chairman of the Supervisory Board

    • Tenure: 21.7yrs
    • Compensation: €34.00k

Company Information

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


Key Information

  • Name: United Internet AG
  • Ticker: UDIR.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €6.581b
  • Listing Market Cap: €7.272b
  • Shares outstanding: 199.41m
  • Website: https://www.united-internet.de

Number of Employees


Location

  • United Internet AG
  • Elgendorfer Strasse 57
  • Montabaur
  • Rhineland-Palatinate
  • 56410
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UTDIDB (Deutsche Boerse AG)YesRegistered SharesDEEURMar 1998
UTDIXTRA (XETRA Trading Platform)YesRegistered SharesDEEURMar 1998
0GE4LSE (London Stock Exchange)YesRegistered SharesGBEURMar 1998
UDIR.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDMar 1998
UTDIDBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURMar 1998
UTDISWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMar 1998
UTDIWBAG (Wiener Boerse AG)YesRegistered SharesATEURMar 1998

Biography

United Internet AG, through its subsidiaries, operates as an Internet service provider. It operates through four segment: Consumer Access, Business Access, Consumer Applications, and Business Applications. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 00:49
End of Day Share Price2019/06/26 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.