-2.53%
4.84%
-16.93%
-19.59%
-33.33%
-55.41%
-45.55%

Company Description

United Internet AG, through its subsidiaries, operates as an Internet service provider.The company operates through Consumer Access, Business Access, Consumer Applications, and Business Applications segments.It offers landline-based broadband and mobile internet products, including home networks, online storage, telephony, and IPTV for private users; and telecommunication products ranging from fiber-optic direct connections to tailored ICT solutions, which include voice, data, and network solutions, as well as infrastructure services to national and international carriers and ISPs. The company also provides ad-financed and fee-based application products for consumer and business customers, including domains, websites, web hosting, servers, cloud solutions, and e-shops; personal information management applications, such as email, to-do lists, appointments, and addresses; and group works, online storage, and office software.


It offers its access products through the yourfone, smartmobile.de, 1&1, and 1&1 versatel brands; and applications through GMX, mail.com, WEB.DE, home.pl, Arsys, STRATO, IONOS, Fasthosts, InterNetX, united-domains, and World4You brand names.In addition, the company offers customers professional services in the fields of active domain management under the Sedo brand; and online advertising services under the United Internet Media brand name.It has operations in Germany, the United States, the United Kingdom, Spain, France, Poland, Italy, Austria, Hungary, Romania, Bulgaria, the Czech Republic, Slovakia, the Netherlands, Switzerland, Canada, and Mexico.


The company was founded in 1988 and is headquartered in Montabaur, Germany.

Market Data

Last Price 15.8
Change Percentage -2.53%
Open 15.79
Previous Close 16.21
Market Cap ( Millions) 2731
Volume 45751
Year High 24.64
Year Low 14.58
M A 50 15.51
M A 200 18.76

Financial Ratios

FCF Yield -0.14%
Dividend Yield 3.16%
ROE -0.04%
Debt / Equity 57.46%
Net Debt / EBIDTA 209.41%
Price To Book 0.57
Price Earnings Ratio -1540.23
Price To FCF -710.41
Price To sales 0.43
EV / EBITDA 4.2

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Consumer Access

Expected Growth : 3.5 %

What the company do ?

Consumer Access from United Internet AG provides internet access to private customers, offering various tariffs and services for broadband, mobile, and TV.

Why we expect these perspectives ?

United Internet AG's Consumer Access segment growth of 3.5% is driven by increasing demand for high-speed internet and mobile services, particularly among younger demographics. Additionally, the company's strategic acquisitions and partnerships have expanded its customer base, while investments in network infrastructure have improved service quality and reliability, attracting more subscribers.

Segment nΒ°2 -> Business Applications

Expected Growth : 4.2 %

What the company do ?

United Internet AG's Business Applications segment offers a range of cloud-based services and tools for businesses, including website creation, online marketing, and e-commerce solutions.

Why we expect these perspectives ?

United Internet AG's 4.2% growth in Business Applications is driven by increasing demand for cloud-based services, digital transformation, and rising adoption of IoT devices. Additionally, the company's strategic acquisitions, innovative product offerings, and strong partnerships have contributed to its growth momentum.

Segment nΒ°3 -> Business Access

Expected Growth : 3.8 %

What the company do ?

Business Access from United Internet AG provides high-speed internet and voice services to businesses in Germany, offering reliable and secure connectivity solutions.

Why we expect these perspectives ?

United Internet AG's 3.8% business access growth is driven by increasing demand for high-speed internet and digital services, particularly among SMEs and households. Additionally, the company's strategic acquisitions, network expansion, and investments in 5G infrastructure have enhanced its market position, contributing to the growth.

Segment nΒ°4 -> Consumer Applications

Expected Growth : 4.5 %

What the company do ?

Consumer Applications from United Internet AG refers to a range of software applications and services designed for individual users, including email, cloud storage, and online security solutions.

Why we expect these perspectives ?

United Internet AG's Consumer Applications segment growth of 4.5% is driven by increasing demand for online services, expansion of 5G networks, and rising adoption of cloud-based solutions. Additionally, the company's strategic acquisitions and partnerships have enhanced its product offerings, leading to increased customer engagement and retention.

Segment nΒ°5 -> Corporate

Expected Growth : 3.2 %

What the company do ?

United Internet AG is a German corporate entity that provides internet services, including 1&1 Ionos, GMX, and WEB.DE, offering a range of products and services for private and business customers.

Why we expect these perspectives ?

United Internet AG's 3.2% growth is driven by increasing demand for digital services, expansion of its fiber-optic network, and strategic acquisitions. The company's focus on cloud-based services, cybersecurity, and IoT solutions also contributes to its growth. Additionally, the rise of remote work and online shopping during the pandemic has boosted demand for its internet and cloud services.

United Internet Ag Products

Product Range What is it ?
1&1 IONOS A cloud-based web hosting and server solutions provider
GMX Mail A free email service provider with unlimited storage and advanced security features
WEB.DE A web-based email and online storage service provider
Fasthosts A UK-based web hosting and domain registration service provider
InterNetX A domain registration and web hosting service provider for resellers and businesses
Strato A European-based web hosting and server solutions provider

United Internet AG's Porter Forces

United Internet AG operates in a highly competitive market, and customers have various alternatives to choose from. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes to some extent.

United Internet AG's customers have significant bargaining power due to the availability of alternative service providers. The company's pricing strategy and customer service play a crucial role in retaining customers.

United Internet AG has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it an upper hand in negotiations with suppliers.

The threat of new entrants in the internet services market is moderate, as it requires significant investments in infrastructure and technology. However, the low barriers to entry in certain segments, such as web hosting, pose a threat to United Internet AG's market share.

The internet services market is highly competitive, with several established players competing for market share. United Internet AG faces intense competition from rivals such as Deutsche Telekom and Vodafone.

Capital Structure

Value
Debt Weight 40.03%
Debt Cost 4.75%
Equity Weight 59.97%
Equity Cost 6.82%
WACC 5.99%
Leverage 66.75%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
TEL2-B.ST Tele2 AB (publ), a telecom operator, provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers mobile telephony and data, fixed broadband, fixed …
PROX.BR Proximus PLC provides digital services and communication solutions in Belgium and internationally. It operates through Domestic, International Carrier Services, and TeleSign segments. The company offers fixed and mobile telephony, internet, …
FNTN.DE freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany. It provides a portfolio of services and products primarily in the areas of …
KPN.AS Koninklijke KPN N.V. provides telecommunications and information technology (IT) services in the Netherlands. It operates through Consumer; Business; Wholesale; and Network, Operations & IT segments. The company offers fixed and …
TELIA.ST Telia Company AB (publ) provides communication services in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. The company offers mobile, broadband, television, and fixed-line services to businesses, individuals, families, and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
15.8$
Current Price
15.8$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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