DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - Euronext Milan - DE0005557508 - Common Stock - Currency: EUR
1DTE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Diversified Telecommunication Services industry. 1DTE has an excellent profitability rating, but there are some minor concerns on its financial health. 1DTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1DTE was profitable.
In the past year 1DTE had a positive cash flow from operations.
1DTE had positive earnings in each of the past 5 years.
1DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1DTE has a Return On Assets of 3.68%. This is in the better half of the industry: 1DTE outperforms 60.71% of its industry peers.
1DTE's Return On Equity of 17.71% is amongst the best of the industry. 1DTE outperforms 82.14% of its industry peers.
1DTE has a Return On Invested Capital (6.76%) which is comparable to the rest of the industry.
1DTE had an Average Return On Invested Capital over the past 3 years of 5.79%. This is below the industry average of 8.31%.
The last Return On Invested Capital (6.76%) for 1DTE 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
1DTE has a Profit Margin of 9.68%. This is in the better half of the industry: 1DTE outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of 1DTE has grown nicely.
With a decent Operating Margin value of 21.55%, 1DTE is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of 1DTE has grown nicely.
With a decent Gross Margin value of 61.35%, 1DTE is doing good in the industry, outperforming 67.86% of the companies in the same industry.
1DTE'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1DTE is still creating some value.
The number of shares outstanding for 1DTE has been reduced compared to 1 year ago.
Compared to 5 years ago, 1DTE has more shares outstanding
Compared to 1 year ago, 1DTE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that 1DTE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.02, 1DTE is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
The Debt to FCF ratio of 1DTE is 7.07, which is on the high side as it means it would take 1DTE, 7.07 years of fcf income to pay off all of its debts.
1DTE's Debt to FCF ratio of 7.07 is fine compared to the rest of the industry. 1DTE outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 2.12 is on the high side and indicates that 1DTE has dependencies on debt financing.
With a Debt to Equity ratio value of 2.12, 1DTE is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.16
WACC5.81%
2.3 Liquidity
A Current Ratio of 1.06 indicates that 1DTE should not have too much problems paying its short term obligations.
1DTE's Current ratio of 1.06 is amongst the best of the industry. 1DTE outperforms 89.29% of its industry peers.
1DTE has a Quick Ratio of 1.06. This is a bad value and indicates that 1DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
1DTE's Quick ratio of 0.99 is amongst the best of the industry. 1DTE outperforms 89.29% of its industry peers.
| 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.
Measured over the past years, 1DTE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.65% on average per year.
1DTE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.39%.
The Revenue has been growing slightly by 7.53% on average over the past years.
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
Based on estimates for the next years, 1DTE will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.31% on average per year.
Based on estimates for the next years, 1DTE will show a small growth in Revenue. The Revenue will grow by 3.45% on average per year.
EPS Next Y11.22%
EPS Next 2Y11.49%
EPS Next 3Y11.19%
EPS Next 5Y14.31%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y3.45%
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
The Price/Earnings ratio is 16.67, which indicates a correct valuation of 1DTE.
1DTE's Price/Earnings ratio is in line with the industry average.
1DTE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
1DTE is valuated correctly with a Price/Forward Earnings ratio of 15.01.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1DTE is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1DTE to the average of the S&P500 Index (20.42), we can say 1DTE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1DTE indicates a somewhat cheap valuation: 1DTE is cheaper than 60.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1DTE is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| EV/EBITDA | 5.84 |
4.3 Compensation for Growth
1DTE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1DTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)1.32
EPS Next 2Y11.49%
EPS Next 3Y11.19%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.65%, 1DTE has a reasonable but not impressive dividend return.
1DTE's Dividend Yield is comparable with the industry average which is at 4.52.
Compared to an average S&P500 Dividend Yield of 2.43, 1DTE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
The dividend of 1DTE is nicely growing with an annual growth rate of 8.56%!
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1DTE pays out 49.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1DTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.89%
EPS Next 2Y11.49%
EPS Next 3Y11.19%
BIT:1DTE (4/30/2025, 7:00:00 PM)
31.5
-1.98 (-5.91%)
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 Cap157.07B
Analysts81.54
Price Target37.44 (18.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP49.89%
Div Incr Years0
Div Non Decr Years0
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)7.4%
PT rev (3m)10.71%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.04%
EPS NY rev (3m)4.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 15.01 | ||
| P/S | 1.36 | ||
| P/FCF | 7.59 | ||
| P/OCF | 3.94 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.84 |
EPS(TTM)1.89
EY6%
EPS(NY)2.1
Fwd EY6.66%
FCF(TTM)4.15
FCFY13.18%
OCF(TTM)8
OCFY25.39%
SpS23.22
BVpS12.69
TBVpS-17.21
PEG (NY)1.49
PEG (5Y)1.32
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 | 1.02 |
F-Score6
WACC5.81%
ROIC/WACC1.16
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 Y11.22%
EPS Next 2Y11.49%
EPS Next 3Y11.19%
EPS Next 5Y14.31%
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 5Y3.45%
EBIT growth 1Y14.09%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year94.27%
EBIT Next 3Y29.01%
EBIT Next 5Y16.68%
FCF growth 1Y6.41%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y6.84%
OCF growth 3Y7.34%
OCF growth 5Y11.56%