DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - Borsa Italiana Milan - DE0005557508 - Common Stock - Currency: EUR
Overall 1DTE gets a fundamental rating of 5 out of 10. We evaluated 1DTE against 31 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.
1DTE had a positive operating cash flow in the past year.
Each year in the past 5 years 1DTE has been profitable.
1DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.08%, 1DTE is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
1DTE has a Return On Equity of 10.21%. This is comparable to the rest of the industry: 1DTE outperforms 57.14% of its industry peers.
With a decent Return On Invested Capital value of 7.19%, 1DTE is doing good in the industry, outperforming 64.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1DTE is below the industry average of 7.24%.
The 3 year average ROIC (5.07%) for 1DTE is below the current ROIC(7.19%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 5.25%. This is comparable to the rest of the industry: 1DTE outperforms 42.86% of its industry peers.
1DTE's Profit Margin has improved in the last couple of years.
1DTE has a better Operating Margin (21.08%) than 71.43% of its industry peers.
1DTE's Operating Margin has improved in the last couple of years.
The Gross Margin of 1DTE (61.37%) is better than 64.29% of its industry peers.
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.
The number of shares outstanding for 1DTE remains at a similar level compared to 1 year ago.
1DTE has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1DTE has an improved debt to assets ratio.
2.2 Solvency
1DTE has an Altman-Z score of 1.07. This is a bad value and indicates that 1DTE is not financially healthy and even has some risk of bankruptcy.
1DTE has a Altman-Z score (1.07) which is comparable to the rest of the industry.
1DTE has a debt to FCF ratio of 6.77. This is a slightly negative value and a sign of low solvency as 1DTE would need 6.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.77, 1DTE is doing good in the industry, outperforming 67.86% 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: 89.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | 6.77 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.3
WACC5.53%
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.
1DTE has a better Current ratio (1.15) than 85.71% of its industry peers.
A Quick Ratio of 1.08 indicates that 1DTE should not have too much problems paying its short term obligations.
1DTE's Quick ratio of 1.08 is amongst the best of the industry. 1DTE outperforms 82.14% of its industry peers.
| 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.
The Earnings Per Share has been growing by 9.19% on average over the past years. This is quite good.
Looking at the last year, 1DTE shows a small growth in Revenue. The Revenue has grown by 1.66% in the last year.
1DTE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.16% yearly.
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 14.17% yearly.
Based on estimates for the next years, 1DTE will show a small growth in Revenue. The Revenue will grow by 3.32% on average per year.
EPS Next Y22.84%
EPS Next 2Y16.34%
EPS Next 3Y15.71%
EPS Next 5Y14.17%
Revenue Next Year3.45%
Revenue Next 2Y3.72%
Revenue Next 3Y3.57%
Revenue Next 5Y3.32%
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
A Price/Earnings ratio of 18.17 indicates a rather expensive valuation of 1DTE.
Based on the Price/Earnings ratio, 1DTE is valued a bit more expensive than 60.71% of the companies in the same industry.
1DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
1DTE is valuated correctly with a Price/Forward Earnings ratio of 16.13.
1DTE's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1DTE is more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1DTE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1DTE indicates a somewhat cheap valuation: 1DTE is cheaper than 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1DTE is valued a bit cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| EV/EBITDA | 5.85 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1DTE has a very decent profitability rating, which may justify a higher PE ratio.
1DTE's earnings are expected to grow with 15.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.98
EPS Next 2Y16.34%
EPS Next 3Y15.71%
5. Dividend
5.1 Amount
1DTE has a Yearly Dividend Yield of 2.97%. Purely for dividend investing, there may be better candidates out there.
1DTE's Dividend Yield is slightly below the industry average, which is at 5.48.
Compared to an average S&P500 Dividend Yield of 2.28, 1DTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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
90.85% of the earnings are spent on dividend by 1DTE. This is not a sustainable payout ratio.
The dividend of 1DTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP90.85%
EPS Next 2Y16.34%
EPS Next 3Y15.71%
DEUTSCHE TELEKOM AG-REG
BIT:1DTE (2/3/2025, 7:00:00 PM)
32.53
+0.24 (+0.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners44.54%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap162.21B
Analysts83.7
Price Target33.81 (3.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)8.74%
PT rev (3m)12.12%
EPS NQ rev (1m)2.58%
EPS NQ rev (3m)23.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 16.13 | ||
| P/S | 1.42 | ||
| P/FCF | 7.76 | ||
| P/OCF | 4.11 | ||
| P/B | 2.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.85 |
EPS(TTM)1.79
EY5.5%
EPS(NY)2.02
Fwd EY6.2%
FCF(TTM)4.19
FCFY12.89%
OCF(TTM)7.91
OCFY24.32%
SpS22.9
BVpS11.77
TBVpS-15.45
PEG (NY)0.8
PEG (5Y)1.98
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 | 1.07 |
F-Score7
WACC5.53%
ROIC/WACC1.3
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 Y22.84%
EPS Next 2Y16.34%
EPS Next 3Y15.71%
EPS Next 5Y14.17%
Revenue 1Y (TTM)1.66%
Revenue growth 3Y3.5%
Revenue growth 5Y8.16%
Sales Q2Q%3.43%
Revenue Next Year3.45%
Revenue Next 2Y3.72%
Revenue Next 3Y3.57%
Revenue Next 5Y3.32%
EBIT growth 1Y15.76%
EBIT growth 3Y18.07%
EBIT growth 5Y19.27%
EBIT Next Year105.95%
EBIT Next 3Y30.93%
EBIT Next 5Y20.36%
FCF growth 1Y98.79%
FCF growth 3Y57.53%
FCF growth 5Y28.99%
OCF growth 1Y16.59%
OCF growth 3Y16.39%
OCF growth 5Y15.78%