DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - Euronext Milan - DE0005557508 - Common Stock - Currency: EUR
1DTE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Diversified Telecommunication Services industry. 1DTE has only an average score on both its financial health and profitability. 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.
In the past year 1DTE had a positive cash flow from operations.
1DTE had positive earnings in 4 of the past 5 years.
Of the past 5 years 1DTE 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.08%, 1DTE is in line with its industry, outperforming 40.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.21%, 1DTE is in line with its industry, outperforming 51.85% of the companies in the same industry.
1DTE has a better Return On Invested Capital (7.19%) than 62.96% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1DTE is below the industry average of 7.55%.
The last Return On Invested Capital (7.19%) for 1DTE is above the 3 year average (5.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 10.21% | ||
| ROIC | 7.19% |
ROA(3y)3.43%
ROA(5y)2.83%
ROE(3y)19.17%
ROE(5y)16.26%
ROIC(3y)5.07%
ROIC(5y)5.07%
1.3 Margins
1DTE's Profit Margin of 5.25% is in line compared to the rest of the industry. 1DTE outperforms 44.44% of its industry peers.
1DTE's Profit Margin has improved in the last couple of years.
1DTE's Operating Margin of 21.08% is fine compared to the rest of the industry. 1DTE outperforms 74.07% of its industry peers.
1DTE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.37%, 1DTE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
1DTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.08% | ||
| PM (TTM) | 5.25% | ||
| GM | 61.37% |
OM growth 3Y14.08%
OM growth 5Y10.27%
PM growth 3Y56.85%
PM growth 5Y40.88%
GM growth 3Y1%
GM growth 5Y2.7%
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
1DTE has an Altman-Z score of 1.10. This is a bad value and indicates that 1DTE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1DTE (1.10) is comparable to the rest of the industry.
The Debt to FCF ratio of 1DTE is 6.77, which is on the high side as it means it would take 1DTE, 6.77 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.77, 1DTE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
1DTE has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.16, 1DTE is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 6.77 | ||
| Altman-Z | 1.1 |
ROIC/WACC1.26
WACC5.73%
2.3 Liquidity
1DTE has a Current Ratio of 1.15. This is a normal value and indicates that 1DTE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1DTE (1.15) is better than 92.59% of its industry peers.
A Quick Ratio of 1.08 indicates that 1DTE should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, 1DTE belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
1DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.57%, which is quite good.
1DTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
Looking at the last year, 1DTE shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)17.57%
EPS 3Y7.18%
EPS 5Y9.19%
EPS Q2Q%30.56%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y3.5%
Revenue growth 5Y8.16%
Sales Q2Q%3.43%
3.2 Future
1DTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.90% yearly.
The Revenue is expected to grow by 3.07% on average over the next years.
EPS Next Y27.63%
EPS Next 2Y18.64%
EPS Next 3Y17.06%
EPS Next 5Y13.9%
Revenue Next Year3.51%
Revenue Next 2Y3.87%
Revenue Next 3Y3.67%
Revenue Next 5Y3.07%
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 accelerating.
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
1DTE is valuated rather expensively with a Price/Earnings ratio of 18.49.
Based on the Price/Earnings ratio, 1DTE is valued a bit more expensive than 62.96% of the companies in the same industry.
1DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
1DTE is valuated correctly with a Price/Forward Earnings ratio of 15.78.
Based on the Price/Forward Earnings ratio, 1DTE is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of 1DTE to the average of the S&P500 Index (22.10), we can say 1DTE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
1DTE's Enterprise Value to EBITDA is on the same level as the industry average.
81.48% 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 | 7.89 | ||
| EV/EBITDA | 6.06 |
4.3 Compensation for Growth
1DTE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1DTE may justify a higher PE ratio.
1DTE's earnings are expected to grow with 17.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)2.01
EPS Next 2Y18.64%
EPS Next 3Y17.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, 1DTE has a reasonable but not impressive dividend return.
1DTE's Dividend Yield is comparable with the industry average which is at 5.01.
Compared to an average S&P500 Dividend Yield of 2.33, 1DTE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of 1DTE has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1DTE pays out 90.85% of its income as dividend. This is not a sustainable payout ratio.
1DTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP90.85%
EPS Next 2Y18.64%
EPS Next 3Y17.06%
BIT:1DTE (3/6/2025, 7:00:00 PM)
33.1
+0.14 (+0.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners45.68%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap165.05B
Analysts84.62
Price Target34.86 (5.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.81
Dividend Growth(5Y)4.49%
DP90.85%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.54%
Min EPS beat(2)-3.25%
Max EPS beat(2)16.33%
EPS beat(4)2
Avg EPS beat(4)6.69%
Min EPS beat(4)-7.96%
Max EPS beat(4)21.62%
EPS beat(8)4
Avg EPS beat(8)11.54%
EPS beat(12)7
Avg EPS beat(12)20.44%
EPS beat(16)9
Avg EPS beat(16)18.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.51%
Revenue beat(4)2
Avg Revenue beat(4)-0.03%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)0.92%
Revenue beat(8)5
Avg Revenue beat(8)6.33%
Revenue beat(12)6
Avg Revenue beat(12)11.84%
Revenue beat(16)7
Avg Revenue beat(16)8.42%
PT rev (1m)1.48%
PT rev (3m)10.36%
EPS NQ rev (1m)4.12%
EPS NQ rev (3m)29%
EPS NY rev (1m)3.9%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)-7.51%
Revenue NQ rev (3m)-5.92%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.49 | ||
| Fwd PE | 15.78 | ||
| P/S | 1.45 | ||
| P/FCF | 7.89 | ||
| P/OCF | 4.18 | ||
| P/B | 2.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.06 |
EPS(TTM)1.79
EY5.41%
EPS(NY)2.1
Fwd EY6.34%
FCF(TTM)4.19
FCFY12.67%
OCF(TTM)7.91
OCFY23.9%
SpS22.9
BVpS11.77
TBVpS-15.45
PEG (NY)0.67
PEG (5Y)2.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 10.21% | ||
| ROCE | 9.49% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.71% | ||
| ROICexgc | 18.07% | ||
| OM | 21.08% | ||
| PM (TTM) | 5.25% | ||
| GM | 61.37% | ||
| FCFM | 18.31% |
ROA(3y)3.43%
ROA(5y)2.83%
ROE(3y)19.17%
ROE(5y)16.26%
ROIC(3y)5.07%
ROIC(5y)5.07%
ROICexc(3y)5.22%
ROICexc(5y)5.26%
ROICexgc(3y)11.86%
ROICexgc(5y)11.65%
ROCE(3y)6.69%
ROCE(5y)6.68%
ROICexcg growth 3Y12.81%
ROICexcg growth 5Y0.71%
ROICexc growth 3Y12.71%
ROICexc growth 5Y1.93%
OM growth 3Y14.08%
OM growth 5Y10.27%
PM growth 3Y56.85%
PM growth 5Y40.88%
GM growth 3Y1%
GM growth 5Y2.7%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 6.77 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | 77% | ||
| Cap/Sales | 16.23% | ||
| Interest Coverage | 3 | ||
| Cash Conversion | 81.92% | ||
| Profit Quality | 348.95% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.1 |
F-Score7
WACC5.73%
ROIC/WACC1.26
Cap/Depr(3y)80.42%
Cap/Depr(5y)79.83%
Cap/Sales(3y)20.52%
Cap/Sales(5y)19.58%
Profit Quality(3y)132.04%
Profit Quality(5y)148.25%
High Growth Momentum
Growth
EPS 1Y (TTM)17.57%
EPS 3Y7.18%
EPS 5Y9.19%
EPS Q2Q%30.56%
EPS Next Y27.63%
EPS Next 2Y18.64%
EPS Next 3Y17.06%
EPS Next 5Y13.9%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y3.5%
Revenue growth 5Y8.16%
Sales Q2Q%3.43%
Revenue Next Year3.51%
Revenue Next 2Y3.87%
Revenue Next 3Y3.67%
Revenue Next 5Y3.07%
EBIT growth 1Y15.76%
EBIT growth 3Y18.07%
EBIT growth 5Y19.27%
EBIT Next Year105.95%
EBIT Next 3Y30.93%
EBIT Next 5Y19%
FCF growth 1Y98.79%
FCF growth 3Y57.53%
FCF growth 5Y28.99%
OCF growth 1Y16.59%
OCF growth 3Y16.39%
OCF growth 5Y15.78%