NFON AG

NFN.DE

Software - Infrastructure · Technology

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Strong

Stability

Good

Valuation

Weak

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Winston Score History

The full picture

NFON AG is a German technology company that provides cloud-based phone systems for businesses. Instead of using old-fashioned office phone hardware, NFON's customers — mostly small and medium-sized businesses across Europe — connect their calls and communications through the internet using NFON's software platform. The company is one of the larger cloud telephony providers headquartered in Germany.

NFON makes money by charging businesses a recurring monthly fee per user, which is a subscription model. The company operates primarily in German-speaking countries but has expanded into other European markets including the UK, Italy, and Spain, giving it a pan-European footprint. Its main competitive advantage is its focus on the European market and compliance with local data regulations, but it faces strong competition from larger global players like Microsoft Teams and Cisco, which could pressure pricing and slow customer growth.

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

-2.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-336.8% YoY

YoY Growth Rate

Earnings declining

Insider Activity

65.4%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€13M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Revenue declining

NFON AG's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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

32.1%

Modest — 32.1% gross margin

Profit after running costs

Operating Margin

-1.4%

Losing money on operations — -1.4%

Return on the money invested

ROCE

4.5%

Weak — 4.5% 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

+0.4%

Nearly flat sales (+0.4% YoY)

Profit growth

EPS YoY

+298.7%

Earnings growing fast (+298.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

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

546%

Turns 546% of profit into real cash

Spare cash per sale

FCF Margin

5.8%

Thin free cash flow (5.8%)

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

0.41

Conservative — low debt load (0.41)

Covers its interest

Interest Cover

3.20x

Tight — interest eats into profit (3.2x)

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

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Valuation

Price vs profit

P/E Ratio (TTM)

40.1x

no trend

Pricey — P/E 40.1

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

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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