DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:DTE - DE0005557508 - Common Stock
27.06 EUR
+0.21 (+0.78%)
DTE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Diversified Telecommunication Services industry. DTE scores excellent on profitability, but 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.
- DTE had a positive operating cash flow in the past year.
- 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 55.56% of its industry peers.
- DTE's Return On Equity of 19.80% is fine compared to the rest of the industry. DTE outperforms 72.22% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.86%, DTE is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DTE is below the industry average of 7.93%.
- 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 63.89% 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 amongst the best in the industry. DTE outperforms 80.56% of its industry peers.
- DTE's Operating Margin has improved in the last couple of years.
- DTE has a better Gross Margin (61.45%) than 63.89% 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.
- DTE has less shares outstanding than it did 1 year ago.
- DTE has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for DTE has been reduced compared to a year ago.
2.2 Solvency
- DTE has an Altman-Z score of 1.05. This is a bad value and indicates that DTE is not financially healthy and even has some risk of bankruptcy.
- DTE has a Altman-Z score (1.05) which is in line with 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's Debt to FCF ratio of 6.50 is fine compared to the rest of the industry. DTE outperforms 72.22% 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.
- The Debt to Equity ratio of DTE (2.03) is worse than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 6.5 | ||
| Altman-Z | 1.05 |
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.
- The Current ratio of DTE (1.00) is better than 80.56% of its industry peers.
- A Quick Ratio of 0.93 indicates that DTE may have some problems paying its short term obligations.
- DTE's Quick ratio of 0.93 is fine compared to the rest of the industry. DTE outperforms 77.78% of its industry peers.
| 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.
- The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
- DTE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.58%.
- The Revenue has been growing slightly by 7.53% on average over the past years.
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.
- 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.
- 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
- A Price/Earnings ratio of 13.33 indicates a correct valuation of DTE.
- Based on the Price/Earnings ratio, DTE is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. DTE is valued rather cheaply when compared to this.
- DTE is valuated correctly with a Price/Forward Earnings ratio of 12.16.
- Based on the Price/Forward Earnings ratio, DTE is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, DTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
- 86.11% of the companies in the same industry are more expensive than DTE, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTE indicates a rather cheap valuation: DTE is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.19 | ||
| EV/EBITDA | 5.06 |
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 decent profitability rating of DTE may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)1.05
EPS Next 2Y8.6%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
- DTE has a Yearly Dividend Yield of 3.59%.
- DTE's Dividend Yield is comparable with the industry average which is at 3.36.
- Compared to an average S&P500 Dividend Yield of 1.82, DTE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
5.2 History
- The dividend of DTE is nicely growing with an annual growth rate of 8.56%!
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 13.33 and the Price/Book (PB) ratio is 2.18.
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%.