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 6 out of 10 to DTE. DTE was compared to 31 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.
In the past year DTE had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.96%, DTE is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
DTE has a better Return On Equity (18.84%) than 87.10% of its industry peers.
The Return On Invested Capital of DTE (7.16%) is better than 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DTE is in line with the industry average of 7.13%.
The last Return On Invested Capital (7.16%) for DTE 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
Looking at the Profit Margin, with a value of 10.27%, DTE is in the better half of the industry, outperforming 70.97% 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 (22.15%) is better than 83.87% of its industry peers.
In the last couple of years the Operating Margin of DTE has grown nicely.
DTE's Gross Margin of 61.57% is fine compared to the rest of the industry. DTE outperforms 67.74% of its industry peers.
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 | 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
DTE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
DTE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DTE has more shares outstanding
The debt/assets ratio for DTE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.08, we must say that DTE is in the distress zone and has some risk of bankruptcy.
DTE has a Altman-Z score of 1.08. This is comparable to the rest of the industry: DTE outperforms 45.16% of its industry peers.
The Debt to FCF ratio of DTE is 6.65, which is on the high side as it means it would take DTE, 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, DTE is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
DTE has a Debt/Equity ratio of 2.08. This is a high value indicating a heavy dependency on external financing.
DTE has a worse Debt to Equity ratio (2.08) than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 1.08 |
ROIC/WACC1.26
WACC5.66%
2.3 Liquidity
A Current Ratio of 1.23 indicates that DTE should not have too much problems paying its short term obligations.
DTE's Current ratio of 1.23 is amongst the best of the industry. DTE outperforms 90.32% of its industry peers.
DTE has a Quick Ratio of 1.16. This is a normal value and indicates that DTE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.16, DTE belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.97% 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 4.90%.
The Revenue has been growing slightly by 7.53% on average over the past years.
EPS 1Y (TTM)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
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 9.23% yearly.
DTE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.90% yearly.
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y9.23%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.9%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 15.76, the valuation of DTE can be described as correct.
DTE's Price/Earnings ratio is a bit cheaper when compared to the industry. DTE is cheaper than 67.74% of the companies in the same industry.
DTE is valuated rather cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.30, which indicates a correct valuation of DTE.
The rest of the industry has a similar Price/Forward Earnings ratio as DTE.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, DTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 13.3 |
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 70.97% of the companies listed in the same industry.
DTE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DTE is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.78 | ||
| EV/EBITDA | 5.58 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.51
PEG (5Y)1.25
EPS Next 2Y10.38%
EPS Next 3Y10.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, DTE has a reasonable but not impressive dividend return.
DTE's Dividend Yield is comparable with the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.40, DTE pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
47.14% 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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.14%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
FRA:DTE (6/17/2025, 5:36:15 PM)
30.57
-0.66 (-2.11%)
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 Cap152.44B
Analysts82.31
Price Target37.99 (24.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend1.13
Dividend Growth(5Y)8.56%
DP47.14%
Div Incr Years3
Div Non Decr Years3
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)5.25%
EPS NQ rev (1m)-5%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)-4.64%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 13.3 | ||
| P/S | 1.3 | ||
| P/FCF | 6.78 | ||
| P/OCF | 3.68 | ||
| P/B | 2.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.58 |
EPS(TTM)1.94
EY6.35%
EPS(NY)2.3
Fwd EY7.52%
FCF(TTM)4.51
FCFY14.76%
OCF(TTM)8.31
OCFY27.18%
SpS23.58
BVpS12.85
TBVpS-15.76
PEG (NY)1.51
PEG (5Y)1.25
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 | 1.08 |
F-Score9
WACC5.66%
ROIC/WACC1.26
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)24.97%
EPS 3Y15.65%
EPS 5Y12.65%
EPS Q2Q%11.11%
EPS Next Y10.46%
EPS Next 2Y10.38%
EPS Next 3Y10.42%
EPS Next 5Y9.23%
Revenue 1Y (TTM)4.9%
Revenue growth 3Y2.47%
Revenue growth 5Y7.53%
Sales Q2Q%6.88%
Revenue Next Year3.19%
Revenue Next 2Y3.14%
Revenue Next 3Y3.17%
Revenue Next 5Y2.9%
EBIT growth 1Y15.13%
EBIT growth 3Y22.54%
EBIT growth 5Y19.35%
EBIT Next Year89.24%
EBIT Next 3Y27.54%
EBIT Next 5Y16.01%
FCF growth 1Y58.19%
FCF growth 3Y52.18%
FCF growth 5Y18.89%
OCF growth 1Y15.12%
OCF growth 3Y7.34%
OCF growth 5Y11.56%