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1. Company Snapshot

1.a. Company Description

Frequentis AG provides communication and information systems for safety-critical control centers worldwide.It operates through two segments, Air Traffic Management (ATM) and Public Safety & Transport.The company offers air traffic management solutions, including voice communication, network, remote digital tower, ATC towers, surveillance, aeronautical information management (AIM), and aeronautical message handling systems (AMHS) solutions, as well as ATM/unmanned traffic management integration services.


It also provides solutions for airports and airlines, and data management services; defense solutions comprising communications, networks, situational awareness, remote tower, military ATC, surveillance, AIM, and AMHS; emergency services, critical infrastructure, and public safety services; and operations communication, and incident and crisis management services.In addition, the company offers maritime systems consisting of search and rescue, coastal surveillance, and coastal radio, as well as port authority/vessel traffic systems; virtual maritime studio; and specialized communications systems, such as space and conference control systems, as well as professional services, including consulting, technical and user training, and technical support services.It serves civil and military air traffic control and air defense; and police forces, fire brigades, emergency rescue services, shipping, and railways.


The company was founded in 1947 and is headquartered in Vienna, Austria.Frequentis AG is a subsidiary of Frequentis Group Holding GmbH.

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1.b. Last Insights on FQT

Frequentis AG's recent performance was driven by a 14% year-over-year increase in revenue to €493.5m, surpassing market expectations. The company's robust financial results were bolstered by a strong showing in its core business, with revenue growth across all segments. Additionally, the board's decision to increase the dividend by 13% to €0.27 per share reflects the company's confidence in its financial position and commitment to returning value to shareholders.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Frequentis AG's (ETR:FQT) last week's 9.1% decline must have disappointed private companies who have a significant stake

Nov -20

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Frequentis AG (ETR:FQT) Shares Could Be 26% Below Their Intrinsic Value Estimate

Nov -06

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Airspace and Procedure Design Industry Research Report 2025-2033 Featuring Adacel, Leonardo, Frequentis, Advanced Navigation and Positioning, Honeywell, L3Harris, Indra Sistemas, RTX, Saab, THALES

Oct -27

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Is Frequentis AG's (ETR:FQT) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?

Jun -27

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Private companies account for 60% of Frequentis AG's (ETR:FQT) ownership, while individual investors account for 14%

Jun -13

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An Intrinsic Calculation For Frequentis AG (ETR:FQT) Suggests It's 42% Undervalued

May -30

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Frequentis Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags

Apr -10

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Frequentis' (ETR:FQT) Dividend Will Be Increased To €0.27

Apr -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.69%)

6. Segments

Air Traffic Management

Expected Growth: 8%

Frequentis AG's Air Traffic Management growth is driven by increasing air travel demand, need for efficient air traffic control systems, and adoption of digital technologies such as AI and automation. Additionally, growing concerns over air traffic safety, environmental impact, and regulatory requirements for modernization are contributing to the 8% growth.

Public Safety & Transport

Expected Growth: 7%

Frequentis AG's Public Safety & Transport segment growth is driven by increasing demand for advanced communication systems, rising adoption of digital technologies in public safety, and growing need for efficient transportation management. Additionally, government investments in infrastructure development and modernization of emergency response systems contribute to the 7% growth.

Reconciliation/Consolidation

Expected Growth: 10%

Frequentis AG's 10% growth in Reconciliation/Consolidation is driven by increasing demand for air traffic management solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization and automation of reconciliation processes, as well as its commitment to improving operational efficiency, have contributed to its growth.

7. Detailed Products

Air Traffic Management (ATM)

Frequentis ATM solutions provide air traffic controllers with advanced tools to manage air traffic safely and efficiently.

Public Safety and Emergency Response

Frequentis public safety solutions enable emergency responders to quickly respond to emergencies, saving lives and reducing response times.

Maritime and Coastal Surveillance

Frequentis maritime solutions provide coastal surveillance and monitoring systems to ensure safe and secure maritime operations.

Aeronautical Information Management (AIM)

Frequentis AIM solutions provide aeronautical information management systems to ensure safe and efficient air traffic operations.

Communication and Navigation Systems

Frequentis communication and navigation systems provide reliable and secure communication solutions for air traffic management and public safety.

Cybersecurity Solutions

Frequentis cybersecurity solutions provide advanced threat detection and response capabilities to protect critical infrastructure.

8. Frequentis AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Frequentis AG operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Frequentis AG's customers are largely dependent on the company's products and services, giving them limited bargaining power.

Bargaining Power Of Suppliers

Frequentis AG relies on a few key suppliers, but the company's strong relationships and diversified supply chain mitigate the bargaining power of suppliers.

Threat Of New Entrants

The high barriers to entry in the air traffic management industry, combined with Frequentis AG's established market position, make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The air traffic management industry is highly competitive, with several established players vying for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.72%
Debt Cost 4.75%
Equity Weight 93.28%
Equity Cost 6.85%
WACC 6.71%
Leverage 7.20%

11. Quality Control: Frequentis AG passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AudioCodes

A-Score: 5.1/10

Value: 5.8

Growth: 5.7

Quality: 5.9

Yield: 6.9

Momentum: 5.0

Volatility: 1.7

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A-Score: 4.8/10

Value: 2.1

Growth: 5.9

Quality: 5.6

Yield: 3.8

Momentum: 10.0

Volatility: 1.3

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Invisio

A-Score: 4.6/10

Value: 0.0

Growth: 8.3

Quality: 7.9

Yield: 0.6

Momentum: 8.0

Volatility: 3.0

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ADVA Optical Networking

A-Score: 4.4/10

Value: 3.5

Growth: 1.1

Quality: 2.2

Yield: 1.9

Momentum: 7.5

Volatility: 10.0

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Bittium

A-Score: 4.4/10

Value: 1.1

Growth: 5.9

Quality: 6.9

Yield: 1.2

Momentum: 10.0

Volatility: 1.0

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Frequentis

A-Score: 4.1/10

Value: 1.7

Growth: 4.4

Quality: 6.0

Yield: 0.6

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.8$

Current Price

69.8$

Potential

-0.00%

Expected Cash-Flows