DEUTSCHE TELEKOM AG-REG (DTE.DE) Stock Fundamental Analysis
FRA:DTE - Deutsche Boerse Ag - DE0005557508 - Common Stock - Currency: EUR
Taking everything into account, DTE scores 5 out of 10 in our fundamental rating. DTE was compared to 29 industry peers in the Diversified Telecommunication Services industry. While DTE belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DTE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DTE was profitable.
DTE had a positive operating cash flow in the past year.
In the past 5 years DTE has always been profitable.
DTE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.68%, DTE is doing good in the industry, outperforming 62.07% of the companies in the same industry.
The Return On Equity of DTE (17.71%) is better than 79.31% of its industry peers.
DTE has a Return On Invested Capital (6.76%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DTE is in line with the industry average of 7.55%.
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
DTE has a Profit Margin of 9.68%. This is in the better half of the industry: DTE outperforms 68.97% of its industry peers.
DTE's Profit Margin has improved in the last couple of years.
DTE has a Operating Margin of 21.55%. This is in the better half of the industry: DTE outperforms 75.86% of its industry peers.
DTE's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.35%, DTE is doing good in the industry, outperforming 68.97% of the companies in the same industry.
In the last couple of years the Gross Margin of DTE has remained more or less at the same level.
| 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
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
Based on the Altman-Z score of 1.05, we must say that DTE is in the distress zone and has some risk of bankruptcy.
DTE's Altman-Z score of 1.05 is in line compared to the rest of the industry. DTE outperforms 48.28% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.07, DTE is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
DTE has a Debt/Equity ratio of 2.12. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DTE (2.12) is worse than 82.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.12 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 1.05 |
ROIC/WACC1.18
WACC5.72%
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.
The Current ratio of DTE (1.06) is better than 89.66% 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 89.66% 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 26.64%, 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.
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
The Earnings Per Share is expected to grow by 14.30% on average over the next years. This is quite good.
Based on estimates for the next years, DTE will show a small growth in Revenue. The Revenue will grow by 2.79% on average per year.
EPS Next Y11.27%
EPS Next 2Y12.73%
EPS Next 3Y11.05%
EPS Next 5Y14.3%
Revenue Next Year5.97%
Revenue Next 2Y4.84%
Revenue Next 3Y4.3%
Revenue Next 5Y2.79%
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
With a Price/Earnings ratio of 17.83, DTE is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DTE is on the same level as its industry peers.
DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 28.90, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.05, DTE is valued correctly.
Based on the Price/Forward Earnings ratio, DTE is valued a bit more expensive than 62.07% of the companies in the same industry.
DTE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 16.05 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DTE.
Based on the Price/Free Cash Flow ratio, DTE is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
DTE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.58
PEG (5Y)1.41
EPS Next 2Y12.73%
EPS Next 3Y11.05%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 2.66%.
DTE's Dividend Yield is comparable with the industry average which is at 4.86.
DTE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
On average, the dividend of DTE grows each year by 8.56%, which is quite nice.
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.
The dividend of DTE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP49.89%
EPS Next 2Y12.73%
EPS Next 3Y11.05%
FRA:DTE (3/14/2025, 7:00:00 PM)
33.7
-0.11 (-0.33%)
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 Cap168.04B
Analysts85.6
Price Target36.1 (7.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)5.16%
PT rev (3m)6.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.12%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)3.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.83 | ||
| Fwd PE | 16.05 | ||
| P/S | 1.45 | ||
| P/FCF | 8.12 | ||
| P/OCF | 4.21 | ||
| P/B | 2.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.07 |
EPS(TTM)1.89
EY5.61%
EPS(NY)2.1
Fwd EY6.23%
FCF(TTM)4.15
FCFY12.32%
OCF(TTM)8
OCFY23.73%
SpS23.22
BVpS12.69
TBVpS-17.21
PEG (NY)1.58
PEG (5Y)1.41
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 | 1.05 |
F-Score6
WACC5.72%
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)26.64%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%27.03%
EPS Next Y11.27%
EPS Next 2Y12.73%
EPS Next 3Y11.05%
EPS Next 5Y14.3%
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 5Y2.79%
EBIT growth 1Y14.09%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year91.55%
EBIT Next 3Y30.6%
EBIT Next 5Y15.82%
FCF growth 1Y6.41%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y6.84%
OCF growth 3Y7.34%
OCF growth 5Y11.56%