XTRA:DTE

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Deutsche Telekom

Market Cap

€82.7b

Last Updated

2021/08/03 20:56 UTC

Data Sources

Company Financials +

Executive Summary

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. More Details


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Deutsche Telekom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DTE is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DTE's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

DTE

-1.4%

DE Telecom

0.8%

DE Market


1 Year Return

20.6%

DTE

16.0%

DE Telecom

27.3%

DE Market

Return vs Industry: DTE exceeded the German Telecom industry which returned 14.9% over the past year.

Return vs Market: DTE underperformed the German Market which returned 27.4% over the past year.


Shareholder returns

DTEIndustryMarket
7 Day-1.3%-1.4%0.8%
30 Day-2.0%-0.5%0.2%
90 Day7.3%6.5%3.4%
1 Year24.9%20.6%20.3%16.0%31.3%27.3%
3 Year39.3%23.4%26.1%11.3%29.4%18.6%
5 Year36.8%11.7%27.7%3.7%50.8%29.9%

Long-Term Price Volatility Vs. Market

How volatile is Deutsche Telekom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Deutsche Telekom undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DTE (€17.6) is trading below our estimate of fair value (€103.33)

Significantly Below Fair Value: DTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DTE is good value based on its PE Ratio (20x) compared to the German Telecom industry average (20.1x).

PE vs Market: DTE is good value based on its PE Ratio (20x) compared to the German market (25.5x).


Price to Earnings Growth Ratio

PEG Ratio: DTE is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: DTE is overvalued based on its PB Ratio (2.2x) compared to the DE Telecom industry average (2x).


Future Growth

How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTE's forecast earnings growth (20.8% per year) is above the savings rate (0.01%).

Earnings vs Market: DTE's earnings (20.8% per year) are forecast to grow faster than the German market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DTE's revenue (2.2% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: DTE's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DTE's Return on Equity is forecast to be low in 3 years time (16.1%).


Past Performance

How has Deutsche Telekom performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTE has high quality earnings.

Growing Profit Margin: DTE's current net profit margins (3.8%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: DTE's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: DTE's earnings growth over the past year (7.6%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: DTE earnings growth over the past year (7.6%) underperformed the Telecom industry 16.2%.


Return on Equity

High ROE: DTE's Return on Equity (9%) is considered low.


Financial Health

How is Deutsche Telekom's financial position?


Financial Position Analysis

Short Term Liabilities: DTE's short term assets (€33.8B) do not cover its short term liabilities (€35.3B).

Long Term Liabilities: DTE's short term assets (€33.8B) do not cover its long term liabilities (€161.1B).


Debt to Equity History and Analysis

Debt Level: DTE's debt to equity ratio (143.6%) is considered high.

Reducing Debt: DTE's debt to equity ratio has reduced from 156.4% to 143.6% over the past 5 years.

Debt Coverage: DTE's debt is well covered by operating cash flow (25.2%).

Interest Coverage: DTE's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Deutsche Telekom current dividend yield, its reliability and sustainability?

3.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTE's dividend (3.41%) is higher than the bottom 25% of dividend payers in the German market (0.97%).

High Dividend: DTE's dividend (3.41%) is in the top 25% of dividend payers in the German market (3.23%)


Stability and Growth of Payments

Stable Dividend: DTE's dividend payments have been volatile in the past 10 years.

Growing Dividend: DTE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.1%), DTE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTE's dividends in 3 years are forecast to be well covered by earnings (48.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Tim Hottges (59 yo)

7.58yrs

Tenure

€11,039,040

Compensation

Mr. Timotheus Hottges, also known as Tim, has been Supervisory Board Member at Daimler AG since July 8, 2020. Mr. Hottges serves as a Member of Supervisory Board of FC Bayern München AG. He served as an Ad...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD13.09M) is above average for companies of similar size in the German market ($USD5.05M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: DTE's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: DTE's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Deutsche Telekom AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Deutsche Telekom AG
  • Ticker: DTE
  • Exchange: XTRA
  • Founded: 1995
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €82.669b
  • Shares outstanding: 4.74b
  • Website: https://www.telekom.com

Number of Employees


Location

  • Deutsche Telekom AG
  • Friedrich-Ebert-Allee 140
  • Bonn
  • North Rhine-Westphalia
  • 53113
  • Germany

Listings


Biography

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 20:56
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.