DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
26.99 EUR
+0.09 (+0.33%)
Overall DTE gets a fundamental rating of 5 out of 10. We evaluated DTE against 35 industry peers in the Diversified Telecommunication Services industry. DTE scores excellent on profitability, 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.
- In the past year DTE had a positive cash flow from operations.
- In the past 5 years DTE has always been profitable.
- In the past 5 years DTE always reported a positive cash flow from operatings.
1.2 Ratios
- DTE has a Return On Assets (4.20%) which is in line with its industry peers.
- DTE has a Return On Equity of 19.80%. This is in the better half of the industry: DTE outperforms 74.29% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.86%, DTE is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for DTE 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 has a better Profit Margin (10.20%) than 65.71% of its industry peers.
- DTE's Profit Margin has improved in the last couple of years.
- DTE has a better Operating Margin (22.62%) than 80.00% 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 65.71% 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 | 22.62% | ||
| 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
- 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.
- Compared to 5 years ago, DTE has more shares outstanding
- The debt/assets ratio for DTE has been reduced compared to a year ago.
2.2 Solvency
- DTE has an Altman-Z score of 1.05. This is a bad value and indicates that DTE is not financially healthy and even has some risk of bankruptcy.
- DTE has a Altman-Z score of 1.05. This is comparable to the rest of the industry: DTE outperforms 42.86% of its industry peers.
- DTE has a debt to FCF ratio of 6.50. This is a slightly negative value and a sign of low solvency as DTE would need 6.50 years to pay back of all of its debts.
- DTE has a Debt to FCF ratio of 6.50. This is in the better half of the industry: DTE outperforms 71.43% 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.
- DTE has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: DTE underperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.38
WACC5.7%
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.
- Looking at the Current ratio, with a value of 1.00, DTE belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- 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 80.00% 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.
- Looking at the last year, DTE shows a small growth in Revenue. The Revenue has grown by 3.58% in the last 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
- 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.
- Based on estimates for the next years, DTE will show a small growth in Revenue. The Revenue will grow by 2.92% on average per year.
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.
- 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
- The Price/Earnings ratio is 13.30, which 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 65.71% of the companies listed in the same industry.
- DTE is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 12.13, DTE is valued correctly.
- Based on the Price/Forward Earnings ratio, DTE is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, DTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.3 | ||
| Fwd PE | 12.13 |
4.2 Price Multiples
- DTE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DTE is cheaper than 82.86% of the companies in the same industry.
- DTE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DTE is cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.18 | ||
| EV/EBITDA | 5.06 |
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 1.82, 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
- DTE pays out 53.30% of its income as dividend. 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 13.3 and the Price/Book (PB) ratio is 2.17.
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%.