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Deutsche Telekom

Market Cap

€78.0b

Last Updated

2021/04/10 18:14 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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

-4.6%

DTE

-2.7%

DE Telecom

0.5%

DE Market


1 Year Return

33.1%

DTE

30.0%

DE Telecom

44.0%

DE Market

Return vs Industry: DTE exceeded the German Telecom industry which returned 30% over the past year.

Return vs Market: DTE underperformed the German Market which returned 44% over the past year.


Shareholder returns

DTEIndustryMarket
7 Day-4.6%-2.7%0.5%
30 Day1.4%6.4%5.3%
90 Day8.3%7.6%8.9%
1 Year43.5%33.1%39.2%30.0%48.8%44.0%
3 Year39.6%17.9%24.4%6.2%24.3%13.5%
5 Year33.0%5.0%21.6%-3.8%53.3%31.5%

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 (€16.45) is trading below our estimate of fair value (€78.55)

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 (18.8x) compared to the DE Telecom industry average (21.8x).

PE vs Market: DTE is good value based on its PE Ratio (18.8x) compared to the German market (27.8x).


Price to Earnings Growth Ratio

PEG Ratio: DTE is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: DTE is overvalued based on its PB Ratio (2.2x) compared to the DE Telecom industry average (1.8x).


Future Growth

How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTE's forecast earnings growth (15.8% per year) is above the savings rate (0.07%).

Earnings vs Market: DTE's earnings (15.8% per year) are forecast to grow slower than the German market (20.7% per year).

High Growth Earnings: DTE's earnings are forecast to grow, but not significantly.

Revenue vs Market: DTE's revenue (2% per year) is forecast to grow slower than the German market (5.3% per year).

High Growth Revenue: DTE's revenue (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 (18.6%).


Past Performance

How has Deutsche Telekom performed over the past 5 years?

-1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTE has high quality earnings.

Growing Profit Margin: DTE's current net profit margins (4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: DTE's earnings have declined by 1.5% per year over the past 5 years.

Accelerating Growth: DTE's earnings growth over the past year (7.5%) exceeds its 5-year average (-1.5% per year).

Earnings vs Industry: DTE earnings growth over the past year (7.5%) underperformed the Telecom industry 10.3%.


Return on Equity

High ROE: DTE's Return on Equity (9.3%) is considered low.


Financial Health

How is Deutsche Telekom's financial position?


Financial Position Analysis

Short Term Liabilities: DTE's short term assets (€37.3B) exceed its short term liabilities (€37.1B).

Long Term Liabilities: DTE's short term assets (€37.3B) do not cover its long term liabilities (€155.2B).


Debt to Equity History and Analysis

Debt Level: DTE's debt to equity ratio (147.6%) is considered high.

Reducing Debt: DTE's debt to equity ratio has reduced from 158.4% to 147.6% over the past 5 years.

Debt Coverage: DTE's debt is well covered by operating cash flow (22.2%).

Interest Coverage: DTE's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTE's dividend (3.65%) is higher than the bottom 25% of dividend payers in the German market (1.07%).

High Dividend: DTE's dividend (3.65%) is in the top 25% of dividend payers in the German market (3.21%)


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 (68.4%), 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 (46.1% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Tim Hottges (58 yo)

7.25yrs

Tenure

€11,039,040

Compensation

Mr. Timotheus Hottges, also known as Tim, has been Supervisory Board Member at Daimler AG since July 8, 2020. He served as an Advisor at Deutsche Telekom Capital Partners Management GmbH. He has been a Mem...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD13.12M) is above average for companies of similar size in the German market ($USD5.27M).

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 (3.8 years average tenure).


Board Members

Experienced Board: DTE's board of directors are considered experienced (7.5 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: €78.039b
  • 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 Analysis2021/04/10 18:14
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.