WinstonWınston
Stock

1&1 AG

1U1.DE
39
Telecommunications Services · Communication Services
Price
€24.25
+0.20 (+0.83%)
Market Cap
€4.28B
Exchange
Frankfurt Stock Exchange
Winston Score
39
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Oct 6, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Weak
5/30
Growth
Weak
4/20
Cash Flow
Strong
7/10
Stability
Good
6/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Weak
1/5

39 of 100 counted points = Winston Score 39.

§Winston Score History

The full picture

1&1 AG is a German telecommunications company that sells mobile phone plans and internet connections to everyday consumers and small businesses. It is one of Germany's largest internet service providers and operates under the 1&1 brand, offering products like SIM-only mobile plans, broadband home internet, and bundled phone services. The company is a subsidiary of United Internet AG, one of Germany's biggest digital services groups.

1&1 makes money by charging customers monthly subscription fees for mobile and internet services. It operates almost entirely in Germany, with roughly 15 million customer contracts across its mobile and broadband segments. The company is currently building its own 5G mobile network, which would reduce its dependence on renting network capacity from larger rivals like Telekom and Vodafone — but this buildout requires heavy capital spending, and delays or cost overruns in completing that network remain the central risk to the business in the years ahead.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-55.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

€0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

83.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€303M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

1&1 AG is a rare growth stock that's already generating positive cash flow while growing at 14%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.5% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 176.6M (2021) → 177.4M (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
21.6%
Thin — 21.6% gross margin
Profit after running costs
Operating Margin
3.6%
Thin — 3.6% operating margin
Return on the money invested
ROCE
2.5%
Weak — 2.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+8.5%
Steady sales growth (+8.5% YoY)
Profit growth
EPS YoY
-21.0%
Earnings shrinking (-21.0% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
576%
Turns 576% of profit into real cash
Spare cash per sale
FCF Margin
4.2%
Thin free cash flow (4.2%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.02
Conservative — low debt load (0.02)
Covers its interest
Interest Cover
1.53x
Dangerous — barely covers interest (1.5x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
35.6x
Pricey — P/E 35.6

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+18.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (35.6 → 17.4)

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Dividends

Dividend
Dividend Yield
0.21%
Small dividend — 0.21% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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