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United Internet AG

UTDI.DE
39
Telecommunications Services · Communication Services
Exchange
Frankfurt Stock Exchange
Winston Score
39
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
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Good
Valuation
Good

Winston Score History

The full picture

United Internet AG is a German technology and telecommunications company. It provides internet access, web hosting, and online services to millions of customers across Europe. Its best-known brands include 1&1, IONOS, GMX, and WEB.DE, which offer everything from home broadband and mobile plans to email accounts and cloud hosting for small businesses.

The company makes money through monthly subscriptions for internet and mobile contracts, plus fees from businesses that use its hosting and cloud services. It operates mainly in Germany and other European markets and reported a market cap of around $4.6 billion. Its large installed customer base and well-recognized consumer brands give it a degree of pricing stability, though its low ROIC of 4.3% suggests heavy capital spending is weighing on returns. The key risk going forward is the ongoing cost of building out 1&1's own mobile network in Germany, which requires significant investment before it can generate meaningful returns.

Growth Profile

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

Revenue Growth

-5.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+12.9% YoY

YoY Growth Rate

Steady EPS growth

Insider Activity

54.4%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€570M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Revenue declining

United Internet 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

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Quality

Profit per sale
Gross Margin
31.9%
Modest — 31.9% gross margin
Profit after running costs
Operating Margin
9.7%
Modest — 9.7% operating margin
Return on the money invested
ROCE
7.0%
Weak — 7.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-5.6%
Shrinking sales (-5.6% YoY)
Profit growth
EPS YoY
N/A
Data not available
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
444%
Turns 444% of profit into real cash
Spare cash per sale
FCF Margin
9.4%
Modest free cash flow (9.4%)

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
0.72
Moderate — manageable debt (0.72)
Covers its interest
Interest Cover
3.75x
Tight — interest eats into profit (3.8x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
13.6x
no trend
Attractive valuation — P/E 13.6

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
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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