DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
26.9 EUR
-0.16 (-0.59%)
We assign a fundamental rating of 5 out of 10 to DTE. DTE was compared to 35 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year DTE was profitable.
- DTE had a positive operating cash flow in the past year.
- In the past 5 years DTE has always 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 4.20%, DTE is in line with its industry, outperforming 51.43% of the companies in the same industry.
- With a decent Return On Equity value of 19.80%, DTE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- DTE's Return On Invested Capital of 7.86% is fine compared to the rest of the industry. DTE outperforms 71.43% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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 Profit Margin of 10.20%. This is in the better half of the industry: DTE outperforms 62.86% of its industry peers.
- In the last couple of years the Profit Margin of DTE has grown nicely.
- The Operating Margin of DTE (22.62%) is better than 77.14% of its industry peers.
- In the last couple of years the Operating Margin of DTE has grown nicely.
- DTE has a better Gross Margin (61.45%) than 62.86% 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so DTE is still 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.
- Compared to 1 year ago, DTE has an improved debt to assets ratio.
2.2 Solvency
- DTE has an Altman-Z score of 1.06. This is a bad value and indicates that DTE is not financially healthy and even has some risk of bankruptcy.
- DTE's Altman-Z score of 1.06 is in line compared to the rest of the industry. DTE outperforms 45.71% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.50, DTE is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
- 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 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.38
WACC5.7%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that DTE should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.00, DTE is in the better half of the industry, outperforming 80.00% 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.
- Looking at the Quick ratio, with a value of 0.93, DTE is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
| 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.
- 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 3.58%.
- 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
- Based on estimates for the next years, DTE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.45% on average per year.
- DTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
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
- DTE is valuated correctly with a Price/Earnings ratio of 13.25.
- Based on the Price/Earnings ratio, DTE is valued a bit cheaper than 62.86% of the companies in the same industry.
- DTE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 12.09, DTE is valued correctly.
- 62.86% of the companies in the same industry are more expensive than DTE, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DTE to the average of the S&P500 Index (25.98), we can say DTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DTE is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- DTE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DTE is cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.16 | ||
| EV/EBITDA | 5.08 |
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)2.15
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%. Purely for dividend investing, there may be better candidates out there.
- 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 13.25 and the Price/Book (PB) ratio is 2.16.
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%.