DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
FRA:DTE - Deutsche Boerse Ag - DE0005557508 - Common Stock - Currency: EUR
DTE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 industry peers in the Diversified Telecommunication Services industry. While DTE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DTE was profitable.
In the past year DTE had a positive cash flow from operations.
Each year in the past 5 years DTE has been profitable.
DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DTE has a Return On Assets of 3.96%. This is in the better half of the industry: DTE outperforms 67.86% of its industry peers.
DTE's Return On Equity of 18.84% is amongst the best of the industry. DTE outperforms 85.71% of its industry peers.
With a decent Return On Invested Capital value of 7.16%, DTE is doing good in the industry, outperforming 67.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DTE is in line with the industry average of 7.49%.
The 3 year average ROIC (5.79%) for DTE is below the current ROIC(7.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROIC | 7.16% |
ROA(3y)4.16%
ROA(5y)3.11%
ROE(3y)21.81%
ROE(5y)17.36%
ROIC(3y)5.79%
ROIC(5y)5.15%
1.3 Margins
DTE has a better Profit Margin (10.27%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of DTE has grown nicely.
Looking at the Operating Margin, with a value of 22.15%, DTE belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
DTE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.57%, DTE is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
In the last couple of years the Gross Margin of DTE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DTE is creating some value.
DTE has less shares outstanding than it did 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 1.07, we must say that DTE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DTE (1.07) is comparable to the rest of the industry.
DTE has a debt to FCF ratio of 6.65. This is a slightly negative value and a sign of low solvency as DTE would need 6.65 years to pay back of all of its debts.
DTE's Debt to FCF ratio of 6.65 is fine compared to the rest of the industry. DTE outperforms 60.71% of its industry peers.
DTE has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DTE (2.08) is worse than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.26
WACC5.69%
2.3 Liquidity
DTE has a Current Ratio of 1.23. This is a normal value and indicates that DTE is financially healthy and should not expect problems in meeting its short term obligations.
DTE's Current ratio of 1.23 is amongst the best of the industry. DTE outperforms 89.29% of its industry peers.
A Quick Ratio of 1.16 indicates that DTE should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.16, DTE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.97%, which is quite impressive.
Measured over the past years, DTE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
DTE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
Based on estimates for the next years, DTE will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 15.74 indicates a correct valuation of DTE.
Compared to the rest of the industry, the Price/Earnings ratio of DTE indicates a somewhat cheap valuation: DTE is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. DTE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.28, which indicates a correct valuation of DTE.
DTE's Price/Forward Earnings is on the same level as the industry average.
DTE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
DTE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DTE is cheaper than 67.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DTE is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.77 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
DTE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DTE has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.5
PEG (5Y)1.24
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.61, DTE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, DTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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
DTE pays out 47.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of DTE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.14%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
FRA:DTE (7/11/2025, 7:00:00 PM)
30.54
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap152.29B
Analysts82.31
Price Target37.94 (24.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP47.14%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.6%
Min EPS beat(2)7%
Max EPS beat(2)10.21%
EPS beat(4)3
Avg EPS beat(4)7.57%
Min EPS beat(4)-3.25%
Max EPS beat(4)16.33%
EPS beat(8)4
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)18.67%
EPS beat(16)10
Avg EPS beat(16)16.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)6
Avg Revenue beat(12)12%
Revenue beat(16)7
Avg Revenue beat(16)8.68%
PT rev (1m)-0.14%
PT rev (3m)1.69%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-4.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 13.28 | ||
| P/S | 1.3 | ||
| P/FCF | 6.77 | ||
| P/OCF | 3.68 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.51 |
EPS(TTM)1.94
EY6.35%
EPS(NY)2.3
Fwd EY7.53%
FCF(TTM)4.51
FCFY14.77%
OCF(TTM)8.31
OCFY27.21%
SpS23.58
BVpS12.85
TBVpS-15.76
PEG (NY)1.5
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROCE | 9.79% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.79% | ||
| ROICexgc | 18.7% | ||
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% | ||
| FCFM | 19.13% |
ROA(3y)4.16%
ROA(5y)3.11%
ROE(3y)21.81%
ROE(5y)17.36%
ROIC(3y)5.79%
ROIC(5y)5.15%
ROICexc(3y)5.96%
ROICexc(5y)5.33%
ROICexgc(3y)13.64%
ROICexgc(5y)12.14%
ROCE(3y)7.91%
ROCE(5y)7.04%
ROICexcg growth 3Y18.94%
ROICexcg growth 5Y6.74%
ROICexc growth 3Y18.32%
ROICexc growth 5Y4.18%
OM growth 3Y19.59%
OM growth 5Y10.99%
PM growth 3Y35.63%
PM growth 5Y15.06%
GM growth 3Y2.66%
GM growth 5Y1.43%
F-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 79% | ||
| Cap/Sales | 16.1% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 82.84% | ||
| Profit Quality | 186.37% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.07 |
F-Score9
WACC5.69%
ROIC/WACC1.26
Cap/Depr(3y)74.69%
Cap/Depr(5y)79.23%
Cap/Sales(3y)17.88%
Cap/Sales(5y)19.33%
Profit Quality(3y)146.72%
Profit Quality(5y)140.1%
High Growth Momentum
Growth
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
EBIT growth 1Y15.13%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year89.24%
EBIT Next 3Y27.54%
EBIT Next 5Y15.59%
FCF growth 1Y58.19%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y15.12%
OCF growth 3Y7.34%
OCF growth 5Y11.56%