DEUTSCHE TELEKOM AG-REG (DTE.DE)
DE0005557508 - Common Stock
DTE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. DTE scores excellent on profitability, but there are concerns on its financial health. DTE may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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
Looking at the Return On Assets, with a value of 6.13%, DTE is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
DTE has a better Return On Equity (31.24%) than 89.66% of its industry peers.
DTE has a Return On Invested Capital of 6.52%. This is in the better half of the industry: DTE outperforms 62.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DTE is below the industry average of 7.56%.
The 3 year average ROIC (5.07%) for DTE is below the current ROIC(6.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 31.24% | ||
| ROIC | 6.52% |
ROA(3y)3.43%
ROA(5y)2.83%
ROE(3y)19.17%
ROE(5y)16.26%
ROIC(3y)5.07%
ROIC(5y)5.07%
1.3 Margins
With an excellent Profit Margin value of 15.88%, DTE belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
DTE's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.53%, DTE is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
DTE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 60.27%, DTE is in line with its industry, outperforming 58.62% of the companies in the same industry.
DTE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.53% | ||
| PM (TTM) | 15.88% | ||
| GM | 60.27% |
OM growth 3Y14.08%
OM growth 5Y10.27%
PM growth 3Y56.85%
PM growth 5Y40.88%
GM growth 3Y1%
GM growth 5Y2.7%
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.
The number of shares outstanding for DTE remains at a similar level compared to 1 year ago.
The number of shares outstanding for DTE has been increased compared to 5 years ago.
DTE has a better debt/assets ratio than last year.
2.2 Solvency
DTE has an Altman-Z score of 0.85. This is a bad value and indicates that DTE is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.85, DTE is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
DTE has a debt to FCF ratio of 7.24. This is a slightly negative value and a sign of low solvency as DTE would need 7.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.24, DTE is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
DTE has a Debt/Equity ratio of 2.24. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of DTE (2.24) is worse than 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | 7.24 | ||
| Altman-Z | 0.85 |
ROIC/WACC1.23
WACC5.32%
2.3 Liquidity
DTE has a Current Ratio of 1.01. 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 1.01 is fine compared to the rest of the industry. DTE outperforms 79.31% of its industry peers.
DTE has a Quick Ratio of 1.01. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, DTE is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
DTE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.13%.
DTE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.19% yearly.
DTE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.27%.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.13%
EPS 3Y7.18%
EPS 5Y9.19%
EPS growth Q2Q-7.5%
Revenue 1Y (TTM)-21.27%
Revenue growth 3Y3.5%
Revenue growth 5Y8.16%
Revenue growth Q2Q-1.26%
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 9.65% on average per year.
DTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.41% yearly.
EPS Next Y20.84%
EPS Next 2Y16.79%
EPS Next 3Y15.31%
EPS Next 5Y9.65%
Revenue Next Year2.78%
Revenue Next 2Y2.57%
Revenue Next 3Y2.43%
Revenue Next 5Y3.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 14.65, DTE is valued correctly.
DTE's Price/Earnings ratio is a bit cheaper when compared to the industry. DTE is cheaper than 62.07% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. DTE is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.12, which indicates a correct valuation of DTE.
Based on the Price/Forward Earnings ratio, DTE is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
DTE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DTE indicates a somewhat cheap valuation: DTE is cheaper than 62.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTE indicates a rather cheap valuation: DTE is cheaper than 93.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.59 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of DTE may justify a higher PE ratio.
A more expensive valuation may be justified as DTE's earnings are expected to grow with 15.31% in the coming years.
PEG (NY)0.7
PEG (5Y)1.59
EPS Next 2Y16.79%
EPS Next 3Y15.31%
5. Dividend
5.1 Amount
DTE has a Yearly Dividend Yield of 3.68%.
Compared to an average industry Dividend Yield of 5.13, DTE has a dividend in line with its industry peers.
DTE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of DTE has a limited annual growth rate of 4.49%.
Dividend Growth(5Y)4.49%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
22.64% of the earnings are spent on dividend by DTE. This is a low number and sustainable payout ratio.
DTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.64%
EPS Next 2Y16.79%
EPS Next 3Y15.31%
DEUTSCHE TELEKOM AG-REG
FRA:DTE (4/26/2024, 5:29:59 PM)
21.83
+0.16 (+0.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap108.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.7
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.13% | ||
| ROE | 31.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.53% | ||
| PM (TTM) | 15.88% | ||
| GM | 60.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-18.13%
EPS 3Y7.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.27%
Revenue growth 3Y3.5%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y