# freenet AG (FNTN.XETRA)

Canonical: https://gigainvestors.com/s/FNTN.XETRA

Analysis as of: 2026-10-16T07:39:17.285Z. Financial observations: FY2004–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 22.74 per share; close as of 2026-10-15.

Estimated value: low EUR 28.11 per share, central EUR 31.95 per share, high EUR 37.07 per share. Buy at or below the central value EUR 31.95 per share. Valuation as of 2026-10-16T07:39:17.285Z; scenarios are not confidence intervals.

Expected annual return: 13.0% at the stated quote. About 13.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; DE 10-year bond 3.4% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.07×

- FY2018: 0.11×

- FY2019: 0.11×

- FY2020: 0.12×

- FY2021: 0.12×

- FY2022: 0.06×

- FY2023: 0.09×

- FY2024: 0.16×

- FY2025: 0.14×

### moat: fail

- Recent gross margin fell 5.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 19.5%

- ROIC, second-lowest year: 13.9%

- Typical minus recent gross margin: 5.6 pp

- Typical gross margin (annual median): 31.5%

- Recent gross margin (lower of latest and 3-year median): 25.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 11.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.9%

- FY2017: 16.0%

- FY2018: 16.4%

- FY2019: 12.7%

- FY2020: 21.1%

- FY2021: 24.6%

- FY2022: 13.9%

- FY2023: 25.8%

- FY2024: 54.2%

- FY2025: 36.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.45×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 1.4B

- Net income, five-year total: EUR 950M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 3.2 pp

- Working capital / revenue, final three-year average: 4.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.05×

- FY2022: 3.54×

- FY2023: 1.81×

- FY2024: 1.18×

- FY2025: 1.17×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.4% vs 36.4%

- Per-share earnings: 1.79 to 2.08 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -1.7%

- Market cap gain: EUR 25M

- Cumulative retained earnings: EUR 497M

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -1.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.9%

- Per-share value change: EUR 0.29

- Per-share value, starting three-year median: EUR 1.79

- Per-share value, ending three-year median: EUR 2.08

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 2.2%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 544M

- Cumulative net income, 10 years: EUR 2.1B

- ROIC, first three-year median: 16.4%

- ROIC, last three-year median: 36.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 1.79

- FY2017: EUR 2.24

- FY2018: EUR 1.74

- FY2019: EUR 1.49

- FY2020: EUR 1.49

- FY2021: EUR 1.63

- FY2022: EUR 0.67

- FY2023: EUR 1.30

- FY2024: EUR 2.08

- FY2025: EUR 2.31

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.8%

- FY2017: -2.3%

- FY2018: -3.2%

- FY2019: -3.6%

- FY2020: -3.7%

- FY2021: -4.3%

- FY2022: -8.7%

- FY2023: -7.1%

- FY2024: -3.7%

- FY2025: -3.7%

## Holders

## Price story

Down 38% since Apr 2025 · sales -1.5%

Story as of 2026-10-16T10:00:10.708Z; price observation 2026-10-15.

Price needs cash profits to shrink 3.4% a year for ten years

### Sales · FY2024–2025

sales -1.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 3.4B 

- FY2017: EUR 3.5B 

- FY2018: EUR 2.9B 

- FY2019: EUR 2.9B 

- FY2020: EUR 2.6B 

- FY2021: EUR 2.6B 

- FY2022: EUR 2.6B 

- FY2023: EUR 2.6B 

- FY2024: EUR 2.5B 

- FY2025: EUR 2.4B 

### Gross margin · FY2025

gross margin 25.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 27.3% 

- FY2017: 27.6% 

- FY2018: 31.8% 

- FY2019: 31.3% 

- FY2020: 34.3% 

- FY2021: 34.3% 

- FY2022: 35.7% 

- FY2023: 27.0% 

- FY2024: 40.3% 

- FY2025: 25.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are EUR 2.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2025: revenue 2439900000; grossProfit 632700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FNTN.XETRA: freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in marketing mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offering additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company was formerly known as telunico holding AG and changed its name to freenet AG in March 2005. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

### Why customers stay

Margins ranged from 25.9% to 40.3% during 2023–25; it earns 19.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2023: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2024: grossProfit / revenue = 40.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2025: grossProfit / revenue = 25.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); 10-year return on capital observations [[2016,0.17862875719488516],[2017,0.16048901630647794],[2018,0.16411811586804495],[2019,0.1274273406485553],[2020,0.2114922330642865],[2021,0.24554872545234066],[2022,0.1387843157678163],[2023,0.2579629415274051],[2024,0.5419552024741163],[2025,0.36432630079944356]]; median 0.19506049512958584. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

At the time of the Annual General Meeting, the share price was EUR 35.76 (prior year: EUR 25.34).

- Source: https://www.freenet.ag/binaries/_ts_1773989613599/content/assets/freenetgroup/pdf/ir-englisch/finanzberichte/2025/freenet_2025_annual_report_web.pdf (filed ); After a significant price increase in the first few months of the year, the share price reached its high for the year at EUR 37.28 at the beginning of May (prior year: EUR 29.70), which was also the highest level in the last ten years. At the time of the Annual General Meeting, the share price was EUR 35.76 (prior year: EUR 25.34). Up to that point, the market value of the freenet share was well above the average analyst’s expec [Noncontiguous filing excerpt] Share, Technology All Share Share capital / number of shares: EUR 118,900,598 / 118,900,598 units Voting rights: One vote per share Offical trade: Regulated Market / Prime Standard: Frankfurt; Regulated Unofficial Market: Berlin, Hamburg, Stuttgart, Düsseldorf, Hannover, Munich Abbreviation / Reuters Instrument Code: FNTN / FNTGn.DE 13 2025 Annual report | To our shareholders Back to contents Performance of freenet shares vs. benchmark indices in 2025 Indexed as of 31 December 2024 In % 145% 135% 125% 115% 105% 95% 85% January freenet February SXKGR March April May MDAX June TecDax July August September October November December Ø Peers Share performance in 2025 At the end of 2025, the freenet share achieved a TSR of 14%, which was below the previous year's TSR (2024: 9%; 2025: 7%) lower than the prior year's TSR (16%).

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 60 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2016: growth capex 0; upkeep 62792000; owner earnings 289940000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2017: growth capex 0; upkeep 61118000; owner earnings 373574000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2018: growth capex 0; upkeep 57193000; owner earnings 295141000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2019: growth capex 0; upkeep 45155000; owner earnings 191929800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2020: growth capex 0; upkeep 49881000; owner earnings 195505800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2021: growth capex 0; upkeep 48226000; owner earnings 208225800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2022: growth capex 0; upkeep 62942000; owner earnings 280841400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2023: growth capex 0; upkeep 55600000; owner earnings 279799000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2024: growth capex 0; upkeep 43700000; owner earnings 292378000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2025: growth capex 0; upkeep 41900000; owner earnings 317240000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); Dividend observations: [[2016,198417000],[2017,204818000],[2018,211218000],[2019,211218000],[2020,5120000],[2021,203734000],[2022,186595000],[2023,199700000],[2024,210400000],[2025,234100000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); FY2025: cash repurchases 60000000 EUR.

### Are managers owners

Insiders own 0% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FNTN.XETRA SharesStats.PercentInsiders = 0 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 3.4% yearly over ten years; actual growth was 2.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:17.285Z); Ten-year compound average after fade. Initial solved rate -0.06078651786947792. Price 22.74; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.039765533411489 → FY2025 2.69890424011434. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 26.11 per share

- 2016-11: EUR 24.07 per share

- 2016-12: EUR 26.76 per share

- 2017-01: EUR 27.76 per share

- 2017-02: EUR 28.17 per share

- 2017-03: EUR 30.49 per share

- 2017-04: EUR 28.81 per share

- 2017-05: EUR 31.79 per share

- 2017-06: EUR 27.93 per share

- 2017-07: EUR 28.53 per share

- 2017-08: EUR 28.06 per share

- 2017-09: EUR 28.29 per share

- 2017-10: EUR 28.69 per share

- 2017-11: EUR 31.85 per share

- 2017-12: EUR 30.82 per share

- 2018-01: EUR 30.86 per share

- 2018-02: EUR 28.46 per share

- 2018-03: EUR 24.71 per share

- 2018-04: EUR 26.32 per share

- 2018-05: EUR 24.55 per share

- 2018-06: EUR 22.69 per share

- 2018-07: EUR 24.50 per share

- 2018-08: EUR 22.91 per share

- 2018-09: EUR 20.70 per share

- 2018-10: EUR 19.89 per share

- 2018-11: EUR 18.18 per share

- 2018-12: EUR 16.95 per share

- 2019-01: EUR 18.58 per share

- 2019-02: EUR 18.52 per share

- 2019-03: EUR 19.16 per share

- 2019-04: EUR 20.90 per share

- 2019-05: EUR 17.37 per share

- 2019-06: EUR 17.60 per share

- 2019-07: EUR 17.75 per share

- 2019-08: EUR 17.78 per share

- 2019-09: EUR 18.89 per share

- 2019-10: EUR 19.90 per share

- 2019-11: EUR 21.13 per share

- 2019-12: EUR 20.44 per share

- 2020-01: EUR 20.04 per share

- 2020-02: EUR 17.69 per share

- 2020-03: EUR 16.07 per share

- 2020-04: EUR 17.31 per share

- 2020-05: EUR 15.58 per share

- 2020-06: EUR 14.32 per share

- 2020-07: EUR 14.65 per share

- 2020-08: EUR 18.10 per share

- 2020-09: EUR 17.27 per share

- 2020-10: EUR 15.21 per share

- 2020-11: EUR 17.13 per share

- 2020-12: EUR 17.20 per share

- 2021-01: EUR 17.23 per share

- 2021-02: EUR 17.55 per share

- 2021-03: EUR 20.41 per share

- 2021-04: EUR 20.25 per share

- 2021-05: EUR 22.48 per share

- 2021-06: EUR 19.92 per share

- 2021-07: EUR 20.20 per share

- 2021-08: EUR 20.90 per share

- 2021-09: EUR 22.63 per share

- 2021-10: EUR 22.28 per share

- 2021-11: EUR 22.38 per share

- 2021-12: EUR 23.27 per share

- 2022-01: EUR 24.09 per share

- 2022-02: EUR 23.98 per share

- 2022-03: EUR 24.30 per share

- 2022-04: EUR 26.31 per share

- 2022-05: EUR 24.30 per share

- 2022-06: EUR 23.67 per share

- 2022-07: EUR 22.99 per share

- 2022-08: EUR 21.70 per share

- 2022-09: EUR 19.45 per share

- 2022-10: EUR 19.91 per share

- 2022-11: EUR 21.22 per share

- 2022-12: EUR 20.42 per share

- 2023-01: EUR 22.30 per share

- 2023-02: EUR 23.60 per share

- 2023-03: EUR 23.95 per share

- 2023-04: EUR 25.84 per share

- 2023-05: EUR 22.94 per share

- 2023-06: EUR 22.98 per share

- 2023-07: EUR 22.52 per share

- 2023-08: EUR 22.10 per share

- 2023-09: EUR 22.18 per share

- 2023-10: EUR 23.94 per share

- 2023-11: EUR 25.76 per share

- 2023-12: EUR 25.34 per share

- 2024-01: EUR 25.62 per share

- 2024-02: EUR 24.94 per share

- 2024-03: EUR 26.08 per share

- 2024-04: EUR 26.04 per share

- 2024-05: EUR 23.98 per share

- 2024-06: EUR 24.80 per share

- 2024-07: EUR 25.58 per share

- 2024-08: EUR 26.36 per share

- 2024-09: EUR 26.72 per share

- 2024-10: EUR 27.30 per share

- 2024-11: EUR 29.26 per share

- 2024-12: EUR 27.54 per share

- 2025-01: EUR 29.74 per share

- 2025-02: EUR 31.40 per share

- 2025-03: EUR 35.24 per share

- 2025-04: EUR 36.64 per share

- 2025-05: EUR 29.08 per share

- 2025-06: EUR 27.64 per share

- 2025-07: EUR 28.46 per share

- 2025-08: EUR 28.52 per share

- 2025-09: EUR 27.22 per share

- 2025-10: EUR 26.98 per share

- 2025-11: EUR 28.52 per share

- 2025-12: EUR 29.34 per share

- 2026-01: EUR 30.38 per share

- 2026-02: EUR 27.68 per share

- 2026-03: EUR 26.42 per share

- 2026-04: EUR 27.14 per share

- 2026-05: EUR 25.28 per share

- 2026-06: EUR 22.54 per share

- 2026-07: EUR 24.32 per share

- 2026-08: EUR 24.36 per share

- 2026-09: EUR 22.72 per share

- 2026-10: EUR 22.10 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 26.86 per share, central EUR 30.27 per share, high EUR 34.82 per share

- FY2017: low EUR 27.92 per share, central EUR 31.48 per share, high EUR 36.23 per share

- FY2018: low EUR 24.68 per share, central EUR 28.05 per share, high EUR 32.52 per share

- FY2019: low EUR 23.24 per share, central EUR 26.39 per share, high EUR 30.58 per share

- FY2020: low EUR 23.89 per share, central EUR 26.51 per share, high EUR 29.99 per share

- FY2021: low EUR 20.81 per share, central EUR 23.39 per share, high EUR 26.84 per share

- FY2022: low EUR 20.34 per share, central EUR 22.98 per share, high EUR 26.49 per share

- FY2023: low EUR 20.58 per share, central EUR 23.29 per share, high EUR 26.90 per share

- FY2024: low EUR 25.37 per share, central EUR 28.71 per share, high EUR 33.16 per share

- FY2025: low EUR 25.94 per share, central EUR 29.37 per share, high EUR 33.95 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:45:09.033Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations