freenet AG

FNTN.DE

Telecommunications Services · Communication Services

Price

€24.34

+0.40 (+1.67%)

Market Cap

€2.87B

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Strong

Stability

Strong

Valuation

Strong

Dividends

Exceptional

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Share count falling — buybacks

−3.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 122.4M (2021) → 117.9M (2025)

Winston Score History

The full picture

freenet AG is a German telecommunications company that sells mobile phone plans and digital entertainment services to everyday consumers. It does not own its own mobile network — instead, it buys capacity from major German carriers like Telekom, Vodafone, and O2, then resells it under its own brands, including freenet and klarmobil. This makes freenet one of Germany's largest network-independent mobile service providers.

The company earns money through monthly subscription fees for mobile contracts and its digital TV and streaming services, including its MEDIA BROADCAST and waipu.tv platforms. It operates almost entirely in Germany and Austria, with a customer base of several million subscribers. freenet's main advantage is its large retail distribution network and its ability to bundle mobile and TV services together, which helps keep customers from leaving. The key growth driver is expanding its streaming TV subscriber base, while the main risk is continued pressure on mobile pricing in a competitive German market.

Growth Profile

For growth stock investors

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

Revenue Growth

+23.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-29.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

€0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

2.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€280M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

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

Growth + cash flow

freenet AG is a rare growth stock that's already generating positive cash flow while growing at 23%. 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.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

19.4%

Thin — 19.4% gross margin

Profit after running costs

Operating Margin

11.3%

Modest — 11.3% operating margin

Return on the money invested

ROCE

17.9%

Strong — 17.9% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+9.9%

Steady sales growth (+9.9% YoY)

Profit growth

EPS YoY

-7.3%

Earnings shrinking (-7.3% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

157%

Turns 157% of profit into real cash

Spare cash per sale

FCF Margin

11.8%

Modest free cash flow (11.8%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.50

Conservative — low debt load (0.50)

Covers its interest

Interest Cover

11.79x

Comfortably covers interest (11.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

11.9x

Attractive valuation — P/E 11.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+1.7

GROWING

Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend

Dividend Yield

8.50%

Healthy income — 8.50% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+52.5%

Dividend growing fast (52.5% YoY)

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