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IONOS Group SE

IOS.DE
69
Software - Services · Technology
Price
€33.94
+0.96 (+2.91%)
Market Cap
€4.64B
Exchange
Frankfurt Stock Exchange
Winston Score
69
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Exceptional
Stability
Mixed
Valuation
Strong

Winston Score History

The full picture

IONOS Group SE is a German technology company that provides web hosting, cloud storage, and online tools to small and medium-sized businesses across Europe and North America. Its core products include domain registration, website builders, managed cloud servers, and email services. IONOS is one of the largest web hosting providers in Europe and is a subsidiary of United Internet AG.

The company makes money by charging monthly or annual subscription fees for its hosting plans, cloud services, and digital tools. IONOS operates primarily in Germany, the United Kingdom, Spain, France, and the United States, serving roughly 6 million customers worldwide. Its main competitive advantage is its large, sticky customer base of small businesses that rarely switch providers once their websites and emails are set up. The key growth driver is expanding its cloud and managed hosting products to capture more spending from small businesses moving their operations online, while the main risk is intense price competition from larger global players like GoDaddy and Amazon Web Services.

Share count broadly stable

+0.4% over 4y

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

Diluted shares outstanding: 140.0M (2021) → 140.6M (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
60.2%
Premium pricing power — 60.2% gross margin
Profit after running costs
Operating Margin
26.6%
Excellent — 26.6% operating margin
Return on the money invested
ROCE
22.5%
Exceptional — 22.5% 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
-34.1%
Shrinking sales (-34.1% YoY)
Profit growth
EPS YoY
+5.9%
Modest earnings growth (+5.9% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
143%
Turns 143% of profit into real cash
Spare cash per sale
FCF Margin
19.9%
Converts sales into free cash efficiently (19.9%)

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
2.41
Heavy debt load (2.41)
Covers its interest
Interest Cover
5.68x
Adequate interest coverage (5.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
21.0x
Growth-priced — P/E 21.0

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+8.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (21.0 → 12.5)

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Dividends

Not applicable for this business.
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