DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - Euronext Milan - DE0005557508 - Common Stock - Currency: EUR
Taking everything into account, 1DTE scores 5 out of 10 in our fundamental rating. 1DTE was compared to 27 industry peers in the Diversified Telecommunication Services industry. 1DTE scores excellent on profitability, but there are some minor concerns on its financial health. 1DTE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1DTE had positive earnings in the past year.
In the past year 1DTE had a positive cash flow from operations.
Each year in the past 5 years 1DTE has been profitable.
Each year in the past 5 years 1DTE had a positive operating cash flow.
1.2 Ratios
1DTE has a better Return On Assets (3.96%) than 63.33% of its industry peers.
Looking at the Return On Equity, with a value of 18.84%, 1DTE belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.16%, 1DTE is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
1DTE had an Average Return On Invested Capital over the past 3 years of 5.79%. This is in line with the industry average of 7.76%.
The 3 year average ROIC (5.79%) for 1DTE is below the current ROIC(7.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROIC | 7.16% |
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 10.27%, 1DTE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
1DTE's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 22.15%, 1DTE is doing good in the industry, outperforming 80.00% of the companies in the same industry.
1DTE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 61.57%, 1DTE is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
In the last couple of years the Gross Margin of 1DTE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% |
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
1DTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1DTE has less shares outstanding
The number of shares outstanding for 1DTE has been increased compared to 5 years ago.
1DTE has a better debt/assets ratio than last year.
2.2 Solvency
1DTE has an Altman-Z score of 1.08. This is a bad value and indicates that 1DTE is not financially healthy and even has some risk of bankruptcy.
1DTE's Altman-Z score of 1.08 is in line compared to the rest of the industry. 1DTE outperforms 43.33% of its industry peers.
The Debt to FCF ratio of 1DTE is 6.65, which is on the high side as it means it would take 1DTE, 6.65 years of fcf income to pay off all of its debts.
1DTE's Debt to FCF ratio of 6.65 is in line compared to the rest of the industry. 1DTE outperforms 60.00% of its industry peers.
A Debt/Equity ratio of 2.08 is on the high side and indicates that 1DTE has dependencies on debt financing.
The Debt to Equity ratio of 1DTE (2.08) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.08 |
ROIC/WACC1.26
WACC5.7%
2.3 Liquidity
1DTE has a Current Ratio of 1.23. This is a normal value and indicates that 1DTE is financially healthy and should not expect problems in meeting its short term obligations.
1DTE has a better Current ratio (1.23) than 86.67% of its industry peers.
1DTE has a Quick Ratio of 1.16. This is a normal value and indicates that 1DTE is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1DTE (1.16) is better than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
1DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.97%, which is quite impressive.
The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
1DTE shows a small growth in Revenue. In the last year, the Revenue has grown by 4.90%.
1DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 8.84% on average over the next years. This is quite good.
Based on estimates for the next years, 1DTE will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 16.06, the valuation of 1DTE can be described as correct.
1DTE's Price/Earnings ratio is a bit cheaper when compared to the industry. 1DTE is cheaper than 63.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1DTE to the average of the S&P500 Index (27.45), we can say 1DTE is valued slightly cheaper.
A Price/Forward Earnings ratio of 13.55 indicates a correct valuation of 1DTE.
1DTE's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, 1DTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
1DTE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1DTE is cheaper than 66.67% of the companies in the same industry.
80.00% of the companies in the same industry are more expensive than 1DTE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.91 | ||
| EV/EBITDA | 5.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1DTE may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)1.27
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
1DTE has a Yearly Dividend Yield of 2.93%.
1DTE's Dividend Yield is comparable with the industry average which is at 4.71.
1DTE's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
5.2 History
On average, the dividend of 1DTE grows each year by 8.56%, which is quite nice.
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
47.14% of the earnings are spent on dividend by 1DTE. This is a bit on the high side, but may be sustainable.
The dividend of 1DTE is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP47.14%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
BIT:1DTE (6/16/2025, 7:00:00 PM)
31.16
-2.91 (-8.54%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.36%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap155.38B
Analysts82.31
Price Target38.04 (22.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP47.14%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.6%
Min EPS beat(2)7%
Max EPS beat(2)10.21%
EPS beat(4)3
Avg EPS beat(4)7.57%
Min EPS beat(4)-3.25%
Max EPS beat(4)16.33%
EPS beat(8)4
Avg EPS beat(8)1.75%
EPS beat(12)8
Avg EPS beat(12)18.67%
EPS beat(16)10
Avg EPS beat(16)16.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)-0.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)0.51%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)6
Avg Revenue beat(12)12%
Revenue beat(16)7
Avg Revenue beat(16)8.68%
PT rev (1m)1.31%
PT rev (3m)5.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.32 | ||
| P/FCF | 6.91 | ||
| P/OCF | 3.75 | ||
| P/B | 2.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.57 |
EPS(TTM)1.94
EY6.23%
EPS(NY)2.3
Fwd EY7.38%
FCF(TTM)4.51
FCFY14.48%
OCF(TTM)8.31
OCFY26.66%
SpS23.58
BVpS12.85
TBVpS-15.76
PEG (NY)1.53
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.96% | ||
| ROE | 18.84% | ||
| ROCE | 9.79% | ||
| ROIC | 7.16% | ||
| ROICexc | 7.79% | ||
| ROICexgc | 18.7% | ||
| OM | 22.15% | ||
| PM (TTM) | 10.27% | ||
| GM | 61.57% | ||
| FCFM | 19.13% |
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-Score9
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 79% | ||
| Cap/Sales | 16.1% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 82.84% | ||
| Profit Quality | 186.37% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 1.08 |
F-Score9
WACC5.7%
ROIC/WACC1.26
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)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y8.84%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.54%
EBIT growth 1Y15.13%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year89.24%
EBIT Next 3Y27.54%
EBIT Next 5Y15.59%
FCF growth 1Y58.19%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y15.12%
OCF growth 3Y7.34%
OCF growth 5Y11.56%