DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
27.43 EUR
+0.18 (+0.66%)
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
- 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
- DTE's Return On Assets of 4.20% is in line compared to the rest of the industry. DTE outperforms 51.43% of its industry peers.
- DTE's Return On Equity of 19.80% is fine compared to the rest of the industry. DTE outperforms 71.43% of its industry peers.
- With a decent Return On Invested Capital value of 7.86%, DTE is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- 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 last Return On Invested Capital (7.86%) for DTE is above the 3 year average (5.80%), which is a sign of increasing profitability.
| 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.
- DTE's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 22.62%, DTE is doing good in the industry, outperforming 77.14% 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 (61.45%) is better than 62.86% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), DTE 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
- 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.
- Looking at the Altman-Z score, with a value of 1.06, DTE is in line with its industry, outperforming 45.71% of the companies in the same industry.
- 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.
- DTE has a better Debt to FCF ratio (6.50) than 68.57% 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's Debt to Equity ratio of 2.03 is on the low side compared to the rest of the industry. DTE is outperformed by 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
WACC5.71%
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.
- DTE's Current ratio of 1.00 is fine compared to the rest of the industry. DTE outperforms 80.00% of its industry peers.
- 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's Quick ratio of 0.93 is fine compared to the rest of the industry. DTE outperforms 77.14% 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.
- 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
- 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.
- 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
- DTE is valuated correctly with a Price/Earnings ratio of 13.51.
- Based on the Price/Earnings ratio, DTE is valued a bit cheaper than 62.86% of the companies in the same industry.
- DTE is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 12.33, the valuation of DTE can be described as correct.
- Based on the Price/Forward Earnings ratio, DTE is valued a bit cheaper than 62.86% of the companies in the same industry.
- DTE is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 12.33 |
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.
- 88.57% of the companies in the same industry are more expensive than DTE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.28 | ||
| EV/EBITDA | 5.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- DTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)1.07
EPS Next 2Y8.6%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
- DTE has a Yearly Dividend Yield of 3.72%.
- DTE's Dividend Yield is comparable with the industry average which is at 3.26.
- DTE's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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.
- DTE's earnings are growing more than its dividend. This makes the dividend growth 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 13.51 and the Price/Book (PB) ratio is 2.21.
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%.