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%)
DTE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 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.
- DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 4.20%, DTE perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- The Return On Equity of DTE (19.80%) is better than 72.22% of its industry peers.
- DTE's Return On Invested Capital of 7.86% is fine compared to the rest of the industry. DTE outperforms 77.78% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for DTE is below the industry average of 7.93%.
- The last Return On Invested Capital (7.86%) for DTE 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
- The Profit Margin of DTE (10.20%) is better than 63.89% of its industry peers.
- DTE's Profit Margin has improved in the last couple of years.
- The Operating Margin of DTE (22.62%) is better than 80.56% of its industry peers.
- In the last couple of years the Operating Margin of DTE has grown nicely.
- Looking at the Gross Margin, with a value of 61.45%, DTE is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
- 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.
- The number of shares outstanding for DTE has been reduced compared to 1 year ago.
- DTE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DTE has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.05, we must say that DTE is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of DTE (1.05) is comparable to the rest of the 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.
- The Debt to FCF ratio of DTE (6.50) is better than 72.22% of its industry peers.
- DTE has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of DTE (2.03) is worse than 80.56% 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
- DTE has a Current Ratio of 1.00. This is a normal value and indicates that DTE is financially healthy and should not expect problems in meeting its short term obligations.
- DTE has a better Current ratio (1.00) than 80.56% of its industry peers.
- DTE has a Quick Ratio of 1.00. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
- DTE has a better Quick ratio (0.93) than 77.78% 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.
- 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 3.58% in the past 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
- DTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.45% yearly.
- The Revenue is expected to grow by 2.92% on average over the next years.
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
- 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
- The Price/Earnings ratio is 13.33, which indicates a correct valuation of DTE.
- Based on the Price/Earnings ratio, DTE is valued a bit cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of DTE to the average of the S&P500 Index (27.30), we can say DTE is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 12.16, the valuation of DTE can be described as correct.
- Based on the Price/Forward Earnings ratio, DTE is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
- DTE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
- 86.11% of the companies in the same industry are more expensive than DTE, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, DTE is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 5.06 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DTE does not grow enough to justify the current Price/Earnings ratio.
- DTE has a very decent profitability rating, which 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
- With a Yearly Dividend Yield of 3.59%, DTE has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.36, DTE has a dividend in line with its industry peers.
- DTE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
5.2 History
- The dividend of DTE is nicely growing with an annual growth rate of 8.56%!
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.
- The dividend of DTE is growing, but earnings are growing more, so the dividend growth is 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%.