DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
FRA:DTE - Deutsche Boerse Ag - DE0005557508 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to DTE. DTE was compared to 27 industry peers in the Diversified Telecommunication Services industry. DTE scores excellent on profitability, but there are some minor concerns on its financial health. DTE is not valued too expensively and it also shows a decent 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.
DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DTE has a Return On Assets (3.68%) which is in line with its industry peers.
DTE's Return On Equity of 17.71% is amongst the best of the industry. DTE outperforms 85.19% of its industry peers.
DTE has a Return On Invested Capital (6.76%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DTE is in line with the industry average of 7.60%.
The last Return On Invested Capital (6.76%) for DTE 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
Looking at the Profit Margin, with a value of 9.68%, DTE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of DTE has grown nicely.
The Operating Margin of DTE (21.55%) is better than 77.78% of its industry peers.
In the last couple of years the Operating Margin of DTE has grown nicely.
DTE's Gross Margin of 61.35% is fine compared to the rest of the industry. DTE outperforms 62.96% of its industry peers.
DTE'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 DTE is still creating some value.
DTE has less shares outstanding than it did 1 year ago.
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.
The Altman-Z score of DTE (1.06) is comparable to the rest of the industry.
The Debt to FCF ratio of DTE is 7.07, which is on the high side as it means it would take DTE, 7.07 years of fcf income to pay off all of its debts.
DTE's Debt to FCF ratio of 7.07 is fine compared to the rest of the industry. DTE outperforms 70.37% of its industry peers.
A Debt/Equity ratio of 2.12 is on the high side and indicates that DTE has dependencies on debt financing.
DTE's Debt to Equity ratio of 2.12 is on the low side compared to the rest of the industry. DTE is outperformed by 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.06 |
ROIC/WACC1.18
WACC5.74%
2.3 Liquidity
DTE has a Current Ratio of 1.06. 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 1.06 is amongst the best of the industry. DTE outperforms 81.48% of its industry peers.
A Quick Ratio of 0.99 indicates that DTE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, DTE belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
DTE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.24%, which is quite impressive.
The Earnings Per Share has been growing by 12.65% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.39% in the past year.
DTE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.53% yearly.
EPS 1Y (TTM)23.24%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%5.15%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%0.38%
3.2 Future
DTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.38% yearly.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y13.38%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.61%
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
With a Price/Earnings ratio of 17.65, DTE is valued on the expensive side.
DTE's Price/Earnings is on the same level as the industry average.
DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.66, which indicates a correct valuation of DTE.
The rest of the industry has a similar Price/Forward Earnings ratio as DTE.
DTE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DTE.
77.78% 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 | 8.12 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of DTE may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)1.39
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 2.76%.
DTE's Dividend Yield is comparable with the industry average which is at 4.47.
DTE's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 Years2
Div Non Decr Years2
5.3 Sustainability
49.89% of the earnings are spent on dividend by DTE. 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.
DP49.89%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
FRA:DTE (5/23/2025, 7:00:00 PM)
33.71
-0.58 (-1.69%)
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 Cap168.09B
Analysts81.54
Price Target37.65 (11.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP49.89%
Div Incr Years2
Div Non Decr Years2
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)0.93%
PT rev (3m)9.69%
EPS NQ rev (1m)1.91%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-8.41%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.62%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.65 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.45 | ||
| P/FCF | 8.12 | ||
| P/OCF | 4.22 | ||
| P/B | 2.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.13 |
EPS(TTM)1.91
EY5.67%
EPS(NY)2.3
Fwd EY6.82%
FCF(TTM)4.15
FCFY12.32%
OCF(TTM)8
OCFY23.72%
SpS23.22
BVpS12.69
TBVpS-17.21
PEG (NY)1.69
PEG (5Y)1.39
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 | 1.06 |
F-Score6
WACC5.74%
ROIC/WACC1.18
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)23.24%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%5.15%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y13.38%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%0.38%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.61%
EBIT growth 1Y14.09%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year94.04%
EBIT Next 3Y28.89%
EBIT Next 5Y15.73%
FCF growth 1Y6.41%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y6.84%
OCF growth 3Y7.34%
OCF growth 5Y11.56%