DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - Euronext Milan - DE0005557508 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1DTE. 1DTE was compared to 27 industry peers in the Diversified Telecommunication Services industry. While 1DTE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1DTE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1DTE had positive earnings in the past year.
1DTE had a positive operating cash flow in the past year.
In the past 5 years 1DTE has always been profitable.
In the past 5 years 1DTE always reported a positive cash flow from operatings.
1.2 Ratios
1DTE's Return On Assets of 3.96% is fine compared to the rest of the industry. 1DTE outperforms 63.33% of its industry peers.
The Return On Equity of 1DTE (18.84%) is better than 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.16%, 1DTE is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1DTE is in line with the industry average of 7.76%.
The last Return On Invested Capital (7.16%) for 1DTE is above the 3 year average (5.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROIC | 7.16% |
ROA(3y)4.16%
ROA(5y)3.11%
ROE(3y)21.81%
ROE(5y)17.36%
ROIC(3y)5.79%
ROIC(5y)5.15%
1.3 Margins
1DTE has a better Profit Margin (10.27%) than 66.67% of its industry peers.
1DTE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 22.15%, 1DTE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
1DTE's Operating Margin has improved in the last couple of years.
1DTE has a better Gross Margin (61.57%) than 63.33% of its industry peers.
1DTE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% |
OM growth 3Y19.59%
OM growth 5Y10.99%
PM growth 3Y35.63%
PM growth 5Y15.06%
GM growth 3Y2.66%
GM growth 5Y1.43%
2. Health
2.1 Basic Checks
1DTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1DTE has been reduced compared to 1 year ago.
1DTE has more shares outstanding than it did 5 years ago.
1DTE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that 1DTE is in the distress zone and has some risk of bankruptcy.
1DTE has a Altman-Z score (1.08) which is in line with its industry peers.
The Debt to FCF ratio of 1DTE is 6.65, which is on the high side as it means it would take 1DTE, 6.65 years of fcf income to pay off all of its debts.
1DTE has a Debt to FCF ratio (6.65) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.08 is on the high side and indicates that 1DTE has dependencies on debt financing.
The Debt to Equity ratio of 1DTE (2.08) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.08 |
ROIC/WACC1.26
WACC5.7%
2.3 Liquidity
1DTE has a Current Ratio of 1.23. This is a normal value and indicates that 1DTE is financially healthy and should not expect problems in meeting its short term obligations.
1DTE's Current ratio of 1.23 is amongst the best of the industry. 1DTE outperforms 86.67% of its industry peers.
A Quick Ratio of 1.16 indicates that 1DTE should not have too much problems paying its short term obligations.
1DTE's Quick ratio of 1.16 is amongst the best of the industry. 1DTE outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.97% over the past year.
The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.90% in the past year.
1DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
1DTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.06, 1DTE is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 1DTE indicates a somewhat cheap valuation: 1DTE is cheaper than 63.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1DTE to the average of the S&P500 Index (27.21), we can say 1DTE is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.55, 1DTE is valued correctly.
1DTE's Price/Forward Earnings is on the same level as the industry average.
1DTE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than 1DTE, based on the Enterprise Value to EBITDA ratio.
1DTE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1DTE is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1DTE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)1.27
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
1DTE has a Yearly Dividend Yield of 2.93%.
1DTE's Dividend Yield is comparable with the industry average which is at 4.71.
Compared to an average S&P500 Dividend Yield of 2.42, 1DTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
The dividend of 1DTE is nicely growing with an annual growth rate of 8.56%!
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.14% of the earnings are spent on dividend by 1DTE. This is a bit on the high side, but may be sustainable.
1DTE's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.14%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
BIT:1DTE (6/16/2025, 7:00:00 PM)
31.16
-2.91 (-8.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap155.38B
Analysts82.31
Price Target38.04 (22.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP47.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.6%
Min EPS beat(2)7%
Max EPS beat(2)10.21%
EPS beat(4)3
Avg EPS beat(4)7.57%
Min EPS beat(4)-3.25%
Max EPS beat(4)16.33%
EPS beat(8)4
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)18.67%
EPS beat(16)10
Avg EPS beat(16)16.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)6
Avg Revenue beat(12)12%
Revenue beat(16)7
Avg Revenue beat(16)8.68%
PT rev (1m)1.31%
PT rev (3m)5.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.32 | ||
| P/FCF | 6.91 | ||
| P/OCF | 3.75 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.57 |
EPS(TTM)1.94
EY6.23%
EPS(NY)2.3
Fwd EY7.38%
FCF(TTM)4.51
FCFY14.48%
OCF(TTM)8.31
OCFY26.66%
SpS23.58
BVpS12.85
TBVpS-15.76
PEG (NY)1.53
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROCE | 9.79% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.79% | ||
| ROICexgc | 18.7% | ||
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% | ||
| FCFM | 19.13% |
ROA(3y)4.16%
ROA(5y)3.11%
ROE(3y)21.81%
ROE(5y)17.36%
ROIC(3y)5.79%
ROIC(5y)5.15%
ROICexc(3y)5.96%
ROICexc(5y)5.33%
ROICexgc(3y)13.64%
ROICexgc(5y)12.14%
ROCE(3y)7.91%
ROCE(5y)7.04%
ROICexcg growth 3Y18.94%
ROICexcg growth 5Y6.74%
ROICexc growth 3Y18.32%
ROICexc growth 5Y4.18%
OM growth 3Y19.59%
OM growth 5Y10.99%
PM growth 3Y35.63%
PM growth 5Y15.06%
GM growth 3Y2.66%
GM growth 5Y1.43%
F-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 79% | ||
| Cap/Sales | 16.1% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 82.84% | ||
| Profit Quality | 186.37% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.08 |
F-Score9
WACC5.7%
ROIC/WACC1.26
Cap/Depr(3y)74.69%
Cap/Depr(5y)79.23%
Cap/Sales(3y)17.88%
Cap/Sales(5y)19.33%
Profit Quality(3y)146.72%
Profit Quality(5y)140.1%
High Growth Momentum
Growth
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
EBIT growth 1Y15.13%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year89.24%
EBIT Next 3Y27.54%
EBIT Next 5Y15.59%
FCF growth 1Y58.19%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y15.12%
OCF growth 3Y7.34%
OCF growth 5Y11.56%