DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
27.06 EUR
+0.21 (+0.78%)
Taking everything into account, DTE scores 5 out of 10 in our fundamental rating. DTE was compared to 35 industry peers in the Diversified Telecommunication Services industry. DTE has an excellent profitability rating, but there are some minor concerns on its financial health. DTE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- DTE had positive earnings in the past year.
- DTE had a positive operating cash flow in the past year.
- In the past 5 years DTE has always been profitable.
- Each year in the past 5 years DTE had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.20%, DTE is in line with its industry, outperforming 52.78% of the companies in the same industry.
- With a decent Return On Equity value of 19.80%, DTE is doing good in the industry, outperforming 69.44% of the companies in the same industry.
- With a decent Return On Invested Capital value of 7.86%, DTE is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- DTE had an Average Return On Invested Capital over the past 3 years of 5.80%. This is below the industry average of 8.42%.
- The 3 year average ROIC (5.80%) for DTE is below the current ROIC(7.86%), indicating increased profibility in the last year.
| 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
- DTE's Profit Margin of 10.20% is fine compared to the rest of the industry. DTE outperforms 61.11% of its industry peers.
- DTE's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 22.62%, DTE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of DTE has grown nicely.
- DTE has a Gross Margin of 61.45%. This is in the better half of the industry: DTE outperforms 61.11% of its industry peers.
- DTE's Gross Margin has been stable in the last couple of years.
| 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
- DTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- DTE has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for DTE has been increased compared to 5 years ago.
- The debt/assets ratio for DTE has been reduced compared to a year ago.
2.2 Solvency
- DTE has an Altman-Z score of 1.06. This is a bad value and indicates that DTE is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.06, DTE is in line with its industry, outperforming 47.22% of the companies in the same industry.
- The Debt to FCF ratio of DTE is 6.50, which is on the high side as it means it would take DTE, 6.50 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 6.50, DTE is doing good in the industry, outperforming 69.44% of the companies in the same industry.
- DTE has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 2.03, DTE is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.38
WACC5.7%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that DTE should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.00, DTE is doing good in the industry, outperforming 77.78% of the companies in the same industry.
- A Quick Ratio of 0.93 indicates that DTE may have some problems paying its short term obligations.
- DTE has a better Quick ratio (0.93) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
- DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.60%, which is quite good.
- DTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
- The Revenue has been growing slightly by 3.58% in the past year.
- Measured over the past years, DTE shows a small growth in Revenue. The Revenue has been growing by 7.53% on average per year.
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
- Based on estimates for the next years, DTE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.45% on average per year.
- DTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y6.17%
EPS Next 2Y8.6%
EPS Next 3Y9.73%
EPS Next 5Y11.45%
Revenue Next Year2.41%
Revenue Next 2Y2.8%
Revenue Next 3Y3%
Revenue Next 5Y2.92%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 13.33, the valuation of DTE can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of DTE indicates a somewhat cheap valuation: DTE is cheaper than 63.89% of the companies listed in the same industry.
- DTE is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.16, the valuation of DTE can be described as correct.
- DTE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DTE is cheaper than 63.89% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. DTE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
- 80.56% of the companies in the same industry are more expensive than DTE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTE indicates a rather cheap valuation: DTE is cheaper than 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of DTE may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)1.05
EPS Next 2Y8.6%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
- DTE has a Yearly Dividend Yield of 3.72%.
- Compared to an average industry Dividend Yield of 3.26, DTE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, DTE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
5.2 History
- On average, the dividend of DTE grows each year by 8.56%, which is quite nice.
Dividend Growth(5Y)8.56%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 53.30% of the earnings are spent on dividend by DTE. This is a bit on the high side, but may be sustainable.
- DTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP53.3%
EPS Next 2Y8.6%
EPS Next 3Y9.73%
DEUTSCHE TELEKOM AG-REG / DTE.DE FAQ
What is the ChartMill fundamental rating of DEUTSCHE TELEKOM AG-REG (DTE.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to DTE.DE.
What is the valuation status of DEUTSCHE TELEKOM AG-REG (DTE.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to DEUTSCHE TELEKOM AG-REG (DTE.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for DEUTSCHE TELEKOM AG-REG?
DEUTSCHE TELEKOM AG-REG (DTE.DE) has a profitability rating of 7 / 10.
What is the valuation of DEUTSCHE TELEKOM AG-REG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DEUTSCHE TELEKOM AG-REG (DTE.DE) is 13.33 and the Price/Book (PB) ratio is 2.18.
How sustainable is the dividend of DEUTSCHE TELEKOM AG-REG (DTE.DE) stock?
The dividend rating of DEUTSCHE TELEKOM AG-REG (DTE.DE) is 6 / 10 and the dividend payout ratio is 53.3%.