DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
26.74 EUR
-0.25 (-0.93%)
Overall DTE gets a fundamental rating of 5 out of 10. We evaluated DTE against 35 industry peers in the Diversified Telecommunication Services industry. While DTE has a great profitability rating, 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.
- 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
- The Return On Assets of DTE (4.20%) is comparable to the rest of the industry.
- DTE has a better Return On Equity (19.80%) than 71.43% of its industry peers.
- 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.
- DTE had an Average Return On Invested Capital over the past 3 years of 5.80%. This 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.
- DTE has a Operating Margin of 22.62%. This is in the better half of the industry: DTE outperforms 77.14% of its industry peers.
- DTE's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 61.45%, DTE is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
- DTE's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for DTE has been increased compared to 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 1.06, we must say that DTE is in the distress zone and 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.
- 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 68.57% of its industry peers.
- A Debt/Equity ratio of 2.03 is on the high side and indicates that DTE has dependencies on debt financing.
- DTE has a worse Debt to Equity ratio (2.03) 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.
- With a decent Current ratio value of 1.00, DTE is doing good in 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.
- With a decent Quick ratio value of 0.93, DTE is doing good in 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%.
- DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
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
- The Earnings Per Share is expected to grow by 11.45% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.92% on average over the next years.
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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 13.17, the valuation of DTE can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of DTE indicates a somewhat cheap valuation: DTE is cheaper than 62.86% of the companies listed in the same industry.
- DTE is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 12.02, which indicates a correct valuation of DTE.
- DTE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DTE is cheaper than 62.86% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of DTE to the average of the S&P500 Index (25.95), we can say DTE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 12.02 |
4.2 Price Multiples
- DTE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DTE is cheaper than 80.00% 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 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.12 | ||
| EV/EBITDA | 5.07 |
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)2.14
PEG (5Y)1.04
EPS Next 2Y8.6%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.72%, DTE has a reasonable but not impressive dividend return.
- DTE's Dividend Yield is comparable with the industry average which is at 3.26.
- 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
- 53.30% of the earnings are spent on dividend by DTE. 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 13.17 and the Price/Book (PB) ratio is 2.15.
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%.