DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1DTE - DE0005557508 - Common Stock
26.89 EUR
-0.71 (-2.57%)
Taking everything into account, 1DTE scores 5 out of 10 in our fundamental rating. 1DTE was compared to 36 industry peers in the Diversified Telecommunication Services industry. While 1DTE has a great profitability rating, there are some minor concerns on its financial health. 1DTE has a decent growth rate and is not valued too expensively.
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.
- 1DTE had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1DTE had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1DTE (4.20%) is comparable to the rest of the industry.
- 1DTE has a Return On Equity of 19.80%. This is in the better half of the industry: 1DTE outperforms 69.44% of its industry peers.
- 1DTE has a better Return On Invested Capital (7.86%) than 75.00% of its industry peers.
- 1DTE had an Average Return On Invested Capital over the past 3 years of 5.80%. This is below the industry average of 7.93%.
- The last Return On Invested Capital (7.86%) for 1DTE is above the 3 year average (5.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 19.8% | ||
| ROIC | 7.86% |
ROA(3y)4.16%
ROA(5y)3.11%
ROE(3y)21.81%
ROE(5y)17.36%
ROIC(3y)5.8%
ROIC(5y)5.16%
1.3 Margins
- 1DTE's Profit Margin of 10.20% is fine compared to the rest of the industry. 1DTE outperforms 61.11% of its industry peers.
- In the last couple of years the Profit Margin of 1DTE has grown nicely.
- With a decent Operating Margin value of 22.62%, 1DTE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1DTE has grown nicely.
- 1DTE has a Gross Margin of 61.45%. This is in the better half of the industry: 1DTE outperforms 61.11% of its industry peers.
- In the last couple of years the Gross Margin of 1DTE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.62% | ||
| PM (TTM) | 10.2% | ||
| GM | 61.45% |
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.
- 1DTE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1DTE has been increased compared to 5 years ago.
- The debt/assets ratio for 1DTE has been reduced compared to a year ago.
2.2 Solvency
- 1DTE has an Altman-Z score of 1.05. This is a bad value and indicates that 1DTE is not financially healthy and even has some risk of bankruptcy.
- 1DTE's Altman-Z score of 1.05 is in line compared to the rest of the industry. 1DTE outperforms 47.22% of its industry peers.
- The Debt to FCF ratio of 1DTE is 6.50, which is on the high side as it means it would take 1DTE, 6.50 years of fcf income to pay off all of its debts.
- 1DTE has a better Debt to FCF ratio (6.50) than 69.44% of its industry peers.
- 1DTE has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- 1DTE's Debt to Equity ratio of 2.03 is on the low side compared to the rest of the industry. 1DTE is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.38
WACC5.69%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that 1DTE should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.00, 1DTE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- 1DTE has a Quick Ratio of 1.00. This is a bad value and indicates that 1DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1DTE (0.93) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.60% over the past year.
- Measured over the past years, 1DTE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
- Looking at the last year, 1DTE shows a small growth in Revenue. The Revenue has grown by 3.58% in the last year.
- The Revenue has been growing slightly by 7.53% on average over the past years.
EPS 1Y (TTM)13.6%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%17.02%
Revenue 1Y (TTM)3.58%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%1.52%
3.2 Future
- The Earnings Per Share is expected to grow by 11.45% 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 2.92% yearly.
EPS Next Y6.08%
EPS Next 2Y8.76%
EPS Next 3Y9.95%
EPS Next 5Y11.45%
Revenue Next Year2.41%
Revenue Next 2Y2.8%
Revenue Next 3Y3%
Revenue Next 5Y2.92%
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 stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 13.25, the valuation of 1DTE can be described as correct.
- Based on the Price/Earnings ratio, 1DTE is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, 1DTE is valued rather cheaply.
- With a Price/Forward Earnings ratio of 12.05, 1DTE is valued correctly.
- Based on the Price/Forward Earnings ratio, 1DTE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- 1DTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1DTE is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- 86.11% of the companies in the same industry are more expensive than 1DTE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.16 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1DTE does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 1DTE may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.05
EPS Next 2Y8.76%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
- 1DTE has a Yearly Dividend Yield of 3.72%.
- 1DTE's Dividend Yield is comparable with the industry average which is at 3.26.
- Compared to an average S&P500 Dividend Yield of 1.81, 1DTE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
- On average, the dividend of 1DTE grows each year by 8.56%, which is quite nice.
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1DTE pays out 53.30% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1DTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.3%
EPS Next 2Y8.76%
EPS Next 3Y9.95%
DEUTSCHE TELEKOM AG-REG / 1DTE.MI FAQ
Can you provide the ChartMill fundamental rating for DEUTSCHE TELEKOM AG-REG?
ChartMill assigns a fundamental rating of 5 / 10 to 1DTE.MI.
What is the valuation status of DEUTSCHE TELEKOM AG-REG (1DTE.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to DEUTSCHE TELEKOM AG-REG (1DTE.MI). This can be considered as Fairly Valued.
How profitable is DEUTSCHE TELEKOM AG-REG (1DTE.MI) stock?
DEUTSCHE TELEKOM AG-REG (1DTE.MI) has a profitability rating of 7 / 10.
What is the financial health of DEUTSCHE TELEKOM AG-REG (1DTE.MI) stock?
The financial health rating of DEUTSCHE TELEKOM AG-REG (1DTE.MI) is 4 / 10.
Is the dividend of DEUTSCHE TELEKOM AG-REG sustainable?
The dividend rating of DEUTSCHE TELEKOM AG-REG (1DTE.MI) is 6 / 10 and the dividend payout ratio is 53.3%.