DEUTSCHE TELEKOM AG-REG (1DTE.MI) Stock Fundamental Analysis
BIT:1DTE - DE0005557508 - Common Stock
31.01 EUR
+0.7 (+2.31%)
1DTE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 31 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 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.
In the past 5 years 1DTE has always been profitable.
1DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.96%, 1DTE is doing good in the industry, outperforming 64.52% of the companies in the same industry.
With an excellent Return On Equity value of 18.84%, 1DTE belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
1DTE's Return On Invested Capital of 7.16% is fine compared to the rest of the industry. 1DTE outperforms 67.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1DTE is in line with the industry average of 7.60%.
The last Return On Invested Capital (7.16%) for 1DTE is above the 3 year average (5.79%), which is a sign of increasing profitability.
| 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
1DTE has a better Profit Margin (10.27%) than 70.97% of its industry peers.
In the last couple of years the Profit Margin of 1DTE has grown nicely.
With an excellent Operating Margin value of 22.15%, 1DTE belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
1DTE's Operating Margin has improved in the last couple of years.
The Gross Margin of 1DTE (61.57%) is better than 67.74% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1DTE is creating some value.
Compared to 1 year ago, 1DTE has less shares outstanding
1DTE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1DTE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that 1DTE is in the distress zone and has some risk of bankruptcy.
1DTE has a Altman-Z score of 1.07. This is in the lower half of the industry: 1DTE underperforms 61.29% 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.
Looking at the Debt to FCF ratio, with a value of 6.65, 1DTE is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
A Debt/Equity ratio of 2.08 is on the high side and indicates that 1DTE has dependencies on debt financing.
1DTE has a Debt to Equity ratio of 2.08. This is amonst the worse of the industry: 1DTE underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.07 |
ROIC/WACC1.25
WACC5.73%
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.
With an excellent Current ratio value of 1.23, 1DTE belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that 1DTE should not have too much problems paying its short term obligations.
1DTE has a Quick ratio of 1.16. This is amongst the best in the industry. 1DTE outperforms 93.55% 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 16.28%, which is quite good.
1DTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.65% yearly.
Looking at the last year, 1DTE shows a small growth in Revenue. The Revenue has grown by 3.39% in the last year.
1DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)16.28%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%2.62%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%0.96%
3.2 Future
1DTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.57% yearly.
Based on estimates for the next years, 1DTE will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y5.84%
EPS Next 2Y8.99%
EPS Next 3Y9.78%
EPS Next 5Y11.57%
Revenue Next Year1.77%
Revenue Next 2Y2.04%
Revenue Next 3Y2.4%
Revenue Next 5Y3.01%
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
1DTE is valuated correctly with a Price/Earnings ratio of 15.90.
74.19% of the companies in the same industry are more expensive than 1DTE, based on the Price/Earnings ratio.
1DTE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 13.83 indicates a correct valuation of 1DTE.
Based on the Price/Forward Earnings ratio, 1DTE is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1DTE to the average of the S&P500 Index (22.67), we can say 1DTE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.83 |
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 74.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1DTE is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.87 | ||
| EV/EBITDA | 5.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1DTE may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)1.26
EPS Next 2Y8.99%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.85%, 1DTE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.44, 1DTE has a dividend in line with its industry peers.
1DTE's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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
1DTE pays out 47.14% 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.
DP47.14%
EPS Next 2Y8.99%
EPS Next 3Y9.78%
BIT:1DTE (8/18/2025, 7:00:00 PM)
31.01
+0.7 (+2.31%)
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 Cap154.63B
Analysts82.31
Price Target38.38 (23.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)0.9%
PT rev (3m)2.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.86%
EPS NY rev (1m)-4.18%
EPS NY rev (3m)-4.18%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-5.02%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.83 | ||
| P/S | 1.32 | ||
| P/FCF | 6.87 | ||
| P/OCF | 3.73 | ||
| P/B | 2.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.56 |
EPS(TTM)1.95
EY6.29%
EPS(NY)2.24
Fwd EY7.23%
FCF(TTM)4.51
FCFY14.55%
OCF(TTM)8.31
OCFY26.79%
SpS23.58
BVpS12.85
TBVpS-15.76
PEG (NY)2.72
PEG (5Y)1.26
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 | 1.07 |
F-Score9
WACC5.73%
ROIC/WACC1.25
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)16.28%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%2.62%
EPS Next Y5.84%
EPS Next 2Y8.99%
EPS Next 3Y9.78%
EPS Next 5Y11.57%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%0.96%
Revenue Next Year1.77%
Revenue Next 2Y2.04%
Revenue Next 3Y2.4%
Revenue Next 5Y3.01%
EBIT growth 1Y15.13%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year89.24%
EBIT Next 3Y27.54%
EBIT Next 5Y16.38%
FCF growth 1Y58.19%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y15.12%
OCF growth 3Y7.34%
OCF growth 5Y11.56%