freenet AG (ETR:FNTN) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
Freenet AG's stock has declined 1.9% recently, but its fundamentals, particularly a 19% Return on Equity (ROE), suggest potential for long-term growth. The company's ROE is significantly higher than the industry average of 9.3%, contributing to a 10% earnings growth over the past five years, despite industry declines. However, a high payout ratio of 116% indicates that it pays out more to shareholders than it earns. Analysts expect the payout ratio to decrease to 88% in the next three years, but earnings growth may slow down. Overall, freenet shows positive factors but needs to improve profit reinvestment.
Simplywall·