Latest news with #Frequentis
Yahoo
13-07-2025
- Business
- Yahoo
Frequentis (ETR:FQT) Hasn't Managed To Accelerate Its Returns
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. With that in mind, the ROCE of Frequentis (ETR:FQT) looks decent, right now, so lets see what the trend of returns can tell us. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on Frequentis is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.12 = €33m ÷ (€395m - €133m) (Based on the trailing twelve months to December 2024). Therefore, Frequentis has an ROCE of 12%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Aerospace & Defense industry average of 13%. View our latest analysis for Frequentis In the above chart we have measured Frequentis' prior ROCE against its prior performance, but the future is arguably more important. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Frequentis . While the current returns on capital are decent, they haven't changed much. Over the past five years, ROCE has remained relatively flat at around 12% and the business has deployed 50% more capital into its operations. Since 12% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. In the end, Frequentis has proven its ability to adequately reinvest capital at good rates of return. And the stock has done incredibly well with a 205% return over the last five years, so long term investors are no doubt ecstatic with that result. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. Frequentis could be trading at an attractive price in other respects, so you might find our on our platform quite valuable. For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
CertiCon, an HTEC Company, Honored With Supplier Award 2024 by Frequentis for Outstanding Performance and Sustainability
VIENNA, June 04, 2025--(BUSINESS WIRE)--CertiCon, a high-tech engineering company and part of the HTEC Group, has been awarded the prestigious Supplier Award 2024 by Frequentis, a global leader in communication and information systems for safety-critical applications. This marks the second consecutive year that CertiCon has been recognized as one of the three Frequentis's top-performing suppliers. The award celebrates exceptional supplier performance across key criteria including quality, pricing, technical support, customer care, and sustainability. CertiCon stood out not only for its reliable and innovative engineering services, but also for its commitment to corporate social responsibility. In addition to the supplier ranking, CertiCon received a special Sustainability Award, distinguishing it as the only supplier recognized in this category. The award highlights CertiCon's consistent efforts to promote ethical business practices, uphold labor standards, foster inclusive employee programs, support local communities, and minimize environmental impact. Both awards were presented at the Frequentis Supplier Award Ceremony held on May 14, 2025, at the company's headquarters in Vienna, by Mr. Karl Wannenmacher, CTO and member of the Frequentis executive board. "We are proud to see CertiCon being recognized by one of our most valued partners," said Adrian Karas, Software Solutions Director at CertiCon. "This award reinforces the excellence of CertiCon's people and their deep commitment to delivering premium high-tech engineering services and advancing human well-being through technology." Now part of the HTEC Group, CertiCon continues to blend applied research with cutting-edge development to deliver advanced digital solutions across sectors such as medical technology, industrial automation, and automotive systems. About HTEC HTEC Group Inc. is a global AI-first provider of strategic, software and hardware embedded design and engineering services, specializing in Advanced Technologies, Financial Services, MedTech, Automotive, Telco, and Enterprise Software & Platforms. HTEC has a proven track record of helping Fortune 500 and hyper-growth companies solve complex engineering challenges, drive efficiency, reduce risks, and accelerate time to market. HTEC prides itself on attracting top talent and has strategically chosen the locations of its 20+ excellence centers to enable this. View source version on Contacts For media inquiries please contact HTEC Media Relations, media@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
04-06-2025
- Business
- Business Wire
CertiCon, an HTEC Company, Honored With Supplier Award 2024 by Frequentis for Outstanding Performance and Sustainability
VIENNA--(BUSINESS WIRE)--CertiCon, a high-tech engineering company and part of the HTEC Group, has been awarded the prestigious Supplier Award 2024 by Frequentis, a global leader in communication and information systems for safety-critical applications. This marks the second consecutive year that CertiCon has been recognized as one of the three Frequentis's top-performing suppliers. 'This award reinforces the excellence of CertiCon's people and their deep commitment to delivering premium high-tech engineering services and advancing human well-being through technology," said Adrian Karas, Software Solutions Director at CertiCon. Share The award celebrates exceptional supplier performance across key criteria including quality, pricing, technical support, customer care, and sustainability. CertiCon stood out not only for its reliable and innovative engineering services, but also for its commitment to corporate social responsibility. In addition to the supplier ranking, CertiCon received a special Sustainability Award, distinguishing it as the only supplier recognized in this category. The award highlights CertiCon's consistent efforts to promote ethical business practices, uphold labor standards, foster inclusive employee programs, support local communities, and minimize environmental impact. Both awards were presented at the Frequentis Supplier Award Ceremony held on May 14, 2025, at the company's headquarters in Vienna, by Mr. Karl Wannenmacher, CTO and member of the Frequentis executive board. 'We are proud to see CertiCon being recognized by one of our most valued partners,' said Adrian Karas, Software Solutions Director at CertiCon. 'This award reinforces the excellence of CertiCon's people and their deep commitment to delivering premium high-tech engineering services and advancing human well-being through technology.' Now part of the HTEC Group, CertiCon continues to blend applied research with cutting-edge development to deliver advanced digital solutions across sectors such as medical technology, industrial automation, and automotive systems. About HTEC HTEC Group Inc. is a global AI-first provider of strategic, software and hardware embedded design and engineering services, specializing in Advanced Technologies, Financial Services, MedTech, Automotive, Telco, and Enterprise Software & Platforms. HTEC has a proven track record of helping Fortune 500 and hyper-growth companies solve complex engineering challenges, drive efficiency, reduce risks, and accelerate time to market. HTEC prides itself on attracting top talent and has strategically chosen the locations of its 20+ excellence centers to enable this.
Yahoo
30-05-2025
- Business
- Yahoo
An Intrinsic Calculation For Frequentis AG (ETR:FQT) Suggests It's 42% Undervalued
Frequentis' estimated fair value is €81.33 based on 2 Stage Free Cash Flow to Equity Frequentis is estimated to be 42% undervalued based on current share price of €47.10 Analyst price target for FQT is €45.55 which is 44% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Frequentis AG (ETR:FQT) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €37.0m €32.7m €34.4m €40.7m €46.4m €50.5m €53.7m €56.4m €58.6m €60.4m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x2 Analyst x1 Est @ 8.75% Est @ 6.51% Est @ 4.94% Est @ 3.84% Est @ 3.07% Present Value (€, Millions) Discounted @ 5.9% €35.0 €29.2 €28.9 €32.4 €34.8 €35.8 €36.0 €35.6 €34.9 €34.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €337m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.3%. We discount the terminal cash flows to today's value at a cost of equity of 5.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €60m× (1 + 1.3%) ÷ (5.9%– 1.3%) = €1.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €1.3b÷ ( 1 + 5.9%)10= €743m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €1.1b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of €47.1, the company appears quite undervalued at a 42% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Frequentis as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.9%, which is based on a levered beta of 0.954. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Frequentis Strength Debt is not viewed as a risk. Weakness Earnings growth over the past year underperformed the Aerospace & Defense industry. Dividend is low compared to the top 25% of dividend payers in the Aerospace & Defense market. Opportunity Annual revenue is forecast to grow faster than the German market. Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to grow slower than the German market. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Frequentis, we've put together three essential aspects you should explore: Financial Health: Does FQT have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does FQT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
30-05-2025
- Business
- Yahoo
An Intrinsic Calculation For Frequentis AG (ETR:FQT) Suggests It's 42% Undervalued
Frequentis' estimated fair value is €81.33 based on 2 Stage Free Cash Flow to Equity Frequentis is estimated to be 42% undervalued based on current share price of €47.10 Analyst price target for FQT is €45.55 which is 44% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Frequentis AG (ETR:FQT) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €37.0m €32.7m €34.4m €40.7m €46.4m €50.5m €53.7m €56.4m €58.6m €60.4m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x2 Analyst x1 Est @ 8.75% Est @ 6.51% Est @ 4.94% Est @ 3.84% Est @ 3.07% Present Value (€, Millions) Discounted @ 5.9% €35.0 €29.2 €28.9 €32.4 €34.8 €35.8 €36.0 €35.6 €34.9 €34.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €337m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.3%. We discount the terminal cash flows to today's value at a cost of equity of 5.9%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €60m× (1 + 1.3%) ÷ (5.9%– 1.3%) = €1.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €1.3b÷ ( 1 + 5.9%)10= €743m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €1.1b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of €47.1, the company appears quite undervalued at a 42% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Frequentis as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.9%, which is based on a levered beta of 0.954. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Frequentis Strength Debt is not viewed as a risk. Weakness Earnings growth over the past year underperformed the Aerospace & Defense industry. Dividend is low compared to the top 25% of dividend payers in the Aerospace & Defense market. Opportunity Annual revenue is forecast to grow faster than the German market. Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to grow slower than the German market. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Frequentis, we've put together three essential aspects you should explore: Financial Health: Does FQT have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does FQT's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
