DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
FRA:DTE - Deutsche Boerse Ag - DE0005557508 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DTE. DTE was compared to 29 industry peers in the Diversified Telecommunication Services industry. DTE scores excellent on profitability, but there are some minor concerns on its financial health. DTE has a correct valuation and a medium 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.
Each year in the past 5 years DTE has 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 3.68%, DTE is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
DTE's Return On Equity of 17.71% is amongst the best of the industry. DTE outperforms 83.33% of its industry peers.
The Return On Invested Capital of DTE (6.76%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DTE is in line with the industry average of 7.55%.
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 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of DTE has grown nicely.
Looking at the Operating Margin, with a value of 21.55%, DTE is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Operating Margin of DTE has grown nicely.
The Gross Margin of DTE (61.35%) is better than 70.00% of its industry peers.
DTE's Gross Margin has been stable in the last couple of years.
| 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
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.
With a Altman-Z score value of 1.05, DTE perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
The Debt to FCF ratio of DTE is 7.07, which is on the high side as it means it would take DTE, 7.07 years of fcf income to pay off all of its debts.
DTE has a better Debt to FCF ratio (7.07) than 70.00% of its industry peers.
A Debt/Equity ratio of 2.12 is on the high side and indicates that DTE has dependencies on debt financing.
With a Debt to Equity ratio value of 2.12, 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 | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.18
WACC5.73%
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.
With an excellent Current ratio value of 1.06, DTE belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that DTE may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.99, DTE belongs to the best of the industry, outperforming 93.33% 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 27.71% over the past year.
DTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.84% yearly.
Looking at the last year, DTE shows a small growth in Revenue. The Revenue has grown by 3.39% 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)27.71%
EPS 3Y15.97%
EPS 5Y12.84%
EPS Q2Q%31.32%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%7.1%
3.2 Future
The Earnings Per Share is expected to grow by 11.89% 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 3.14% on average per year.
EPS Next Y10.34%
EPS Next 2Y12.25%
EPS Next 3Y10.74%
EPS Next 5Y11.89%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y3.14%
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
A Price/Earnings ratio of 17.93 indicates a rather expensive valuation of DTE.
DTE's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.35. DTE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.23, the valuation of DTE can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DTE indicates a slightly more expensive valuation: DTE is more expensive than 60.00% of the companies listed in the same industry.
DTE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DTE indicates a somewhat cheap valuation: DTE is cheaper than 63.33% of the companies listed in the same industry.
DTE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. DTE is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)1.4
EPS Next 2Y12.25%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.01, DTE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, DTE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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 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.
DTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.89%
EPS Next 2Y12.25%
EPS Next 3Y10.74%
FRA:DTE (3/7/2025, 7:00:00 PM)
34.07
+1.02 (+3.09%)
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 Cap169.89B
Analysts85.6
Price Target36.1 (5.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)5.14%
Min EPS beat(2)-3.25%
Max EPS beat(2)13.53%
EPS beat(4)3
Avg EPS beat(4)12.06%
Min EPS beat(4)-3.25%
Max EPS beat(4)21.62%
EPS beat(8)4
Avg EPS beat(8)1.7%
EPS beat(12)8
Avg EPS beat(12)21.78%
EPS beat(16)9
Avg EPS beat(16)15.74%
Revenue beat(2)1
Avg Revenue beat(2)5.39%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)11.39%
Revenue beat(4)2
Avg Revenue beat(4)2.58%
Min Revenue beat(4)-0.96%
Max Revenue beat(4)11.39%
Revenue beat(8)5
Avg Revenue beat(8)4.59%
Revenue beat(12)7
Avg Revenue beat(12)12.99%
Revenue beat(16)8
Avg Revenue beat(16)9.23%
PT rev (1m)5.16%
PT rev (3m)6.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.12%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.23 | ||
| P/S | 1.47 | ||
| P/FCF | 8.21 | ||
| P/OCF | 4.26 | ||
| P/B | 2.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.11 |
EPS(TTM)1.9
EY5.58%
EPS(NY)2.1
Fwd EY6.16%
FCF(TTM)4.15
FCFY12.19%
OCF(TTM)8
OCFY23.47%
SpS23.22
BVpS12.69
TBVpS-17.21
PEG (NY)1.73
PEG (5Y)1.4
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 | 1.05 |
F-Score6
WACC5.73%
ROIC/WACC1.18
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)27.71%
EPS 3Y15.97%
EPS 5Y12.84%
EPS Q2Q%31.32%
EPS Next Y10.34%
EPS Next 2Y12.25%
EPS Next 3Y10.74%
EPS Next 5Y11.89%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%7.1%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y3.14%
EBIT growth 1Y14.09%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year91.55%
EBIT Next 3Y30.6%
EBIT Next 5Y18.57%
FCF growth 1Y6.41%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y6.84%
OCF growth 3Y7.34%
OCF growth 5Y11.56%