DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
FRA:DTE - Deutsche Boerse Ag - DE0005557508 - Common Stock - Currency: EUR
Taking everything into account, DTE scores 5 out of 10 in our fundamental rating. DTE was compared to 26 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years DTE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.68%, DTE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
DTE's Return On Equity of 17.71% is amongst the best of the industry. DTE outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.76%, DTE is in line with its industry, outperforming 57.69% 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 7.93%.
The last Return On Invested Capital (6.76%) for DTE is above the 3 year average (5.79%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 17.71% | ||
| ROIC | 6.76% |
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
With a decent Profit Margin value of 9.68%, DTE is doing good in the industry, outperforming 69.23% of the companies in the same industry.
DTE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 21.55%, DTE is doing good in the industry, outperforming 76.92% of the companies in the same industry.
DTE's Operating Margin has improved in the last couple of years.
DTE has a better Gross Margin (61.35%) than 65.38% of its industry peers.
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 | 21.55% | ||
| PM (TTM) | 9.68% | ||
| GM | 61.35% |
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.
Compared to 1 year ago, DTE has less shares outstanding
Compared to 5 years ago, DTE has more shares outstanding
DTE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that DTE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DTE (1.04) is worse than 61.54% of its industry peers.
DTE has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as DTE would need 7.07 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.07, DTE is doing good in the industry, outperforming 73.08% of the companies in the same industry.
A Debt/Equity ratio of 2.12 is on the high side and indicates that DTE has dependencies on debt financing.
DTE's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. DTE is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.04 |
ROIC/WACC1.17
WACC5.8%
2.3 Liquidity
DTE has a Current Ratio of 1.06. 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 Current ratio of 1.06. This is amongst the best in the industry. DTE outperforms 84.62% of its industry peers.
DTE has a Quick Ratio of 1.06. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.99, DTE belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.64% 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 3.39% in the past year.
DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)26.64%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%27.03%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%5.37%
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 13.38% yearly.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y13.38%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y2.61%
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 16.50, which indicates a correct valuation of DTE.
DTE's Price/Earnings ratio is in line with the industry average.
DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.96, which indicates a correct valuation of DTE.
DTE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. DTE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 14.96 |
4.2 Price Multiples
DTE's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTE indicates a rather cheap valuation: DTE is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.51 | ||
| EV/EBITDA | 5.97 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DTE may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.3
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.08, DTE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, DTE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
DTE pays out 49.89% 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.
DP49.89%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
FRA:DTE (4/25/2025, 7:00:00 PM)
31.18
-1.57 (-4.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners45.68%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap155.48B
Analysts81.54
Price Target37.31 (19.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP49.89%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.48%
Min EPS beat(2)-3.25%
Max EPS beat(2)10.21%
EPS beat(4)3
Avg EPS beat(4)11.23%
Min EPS beat(4)-3.25%
Max EPS beat(4)21.62%
EPS beat(8)4
Avg EPS beat(8)1.28%
EPS beat(12)8
Avg EPS beat(12)21.51%
EPS beat(16)9
Avg EPS beat(16)15.53%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)-0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)0.51%
Revenue beat(8)4
Avg Revenue beat(8)3.14%
Revenue beat(12)6
Avg Revenue beat(12)12.02%
Revenue beat(16)7
Avg Revenue beat(16)8.5%
PT rev (1m)3.35%
PT rev (3m)9.98%
EPS NQ rev (1m)4.61%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.72%
EPS NY rev (3m)3.36%
Revenue NQ rev (1m)-2.82%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 14.96 | ||
| P/S | 1.34 | ||
| P/FCF | 7.51 | ||
| P/OCF | 3.9 | ||
| P/B | 2.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.97 |
EPS(TTM)1.89
EY6.06%
EPS(NY)2.08
Fwd EY6.69%
FCF(TTM)4.15
FCFY13.32%
OCF(TTM)8
OCFY25.65%
SpS23.22
BVpS12.69
TBVpS-17.21
PEG (NY)1.58
PEG (5Y)1.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 17.71% | ||
| ROCE | 9.25% | ||
| ROIC | 6.76% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 16.93% | ||
| OM | 21.55% | ||
| PM (TTM) | 9.68% | ||
| GM | 61.35% | ||
| FCFM | 17.88% |
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-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 79.79% | ||
| Cap/Sales | 16.56% | ||
| Interest Coverage | 3.11 | ||
| Cash Conversion | 81.41% | ||
| Profit Quality | 184.7% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.04 |
F-Score6
WACC5.8%
ROIC/WACC1.17
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)26.64%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%27.03%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y13.38%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%5.37%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y2.61%
EBIT growth 1Y14.09%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year94.04%
EBIT Next 3Y28.89%
EBIT Next 5Y15.73%
FCF growth 1Y6.41%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y6.84%
OCF growth 3Y7.34%
OCF growth 5Y11.56%