Executive Summary
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Good value with proven track record 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.3%
DTE
0.9%
DE Telecom
0.05%
DE Market
1 Year Return
1.1%
DTE
4.5%
DE Telecom
3.4%
DE Market
Return vs Industry: DTE underperformed the German Telecom industry which returned 3.6% over the past year.
Return vs Market: DTE underperformed the German Market which returned 4.5% over the past year.
Shareholder returns
| DTE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.3% | 0.9% | 0.05% |
| 30 Day | 4.2% | 4.0% | 5.5% |
| 90 Day | 24.5% | 22.7% | 19.9% |
| 1 Year | 5.2%1.1% | 8.7%4.5% | 5.7%3.4% |
| 3 Year | 11.2%-2.7% | 3.0%-10.0% | 3.4%-4.7% |
| 5 Year | 10.2%-9.9% | 2.1%-17.2% | 10.4%-4.5% |
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
1 year ago | Simply Wall St
Should You Be Impressed By Deutsche Telekom AG's (FRA:DTE) ROE?1 year ago | Simply Wall St
Why Deutsche Telekom AG’s (FRA:DTE) Return On Capital Employed Is Impressive1 year ago | Simply Wall St
Does Deutsche Telekom AG's (FRA:DTE) P/E Ratio Signal A Buying Opportunity?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 (€15.17) is trading below our estimate of fair value (€172.2)
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 (18.5x) compared to the XE Telecom industry average (19.3x).
PE vs Market: DTE is good value based on its PE Ratio (18.5x) compared to the German market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: DTE is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: DTE is overvalued based on its PB Ratio (2.3x) compared to the DE Telecom industry average (1.3x).
Next Steps
Future Growth
How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DTE's forecast earnings growth (8.4% per year) is above the savings rate (0.2%).
Earnings vs Market: DTE's earnings (8.4% per year) are forecast to grow slower than the German market (22.3% per year).
High Growth Earnings: DTE's earnings are forecast to grow, but not significantly.
Revenue vs Market: DTE's revenue (5.8% per year) is forecast to grow slower than the German market (5.9% per year).
High Growth Revenue: DTE's revenue (5.8% 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 (12.6%).
Next Steps
Past Performance
How has Deutsche Telekom performed over the past 5 years?
0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DTE has a large one-off loss of €1.9B impacting its March 31 2020 financial results.
Growing Profit Margin: DTE's current net profit margins (4.7%) are higher than last year (2.6%).
Past Earnings Growth Analysis
Earnings Trend: DTE's earnings have grown by 0.7% per year over the past 5 years.
Accelerating Growth: DTE's earnings growth over the past year (86.8%) exceeds its 5-year average (0.7% per year).
Earnings vs Industry: DTE earnings growth over the past year (86.8%) exceeded the Telecom industry 9.9%.
Return on Equity
High ROE: DTE's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is Deutsche Telekom's financial position?
Financial Position Analysis
Short Term Liabilities: DTE's short term assets (€24.4B) do not cover its short term liabilities (€32.9B).
Long Term Liabilities: DTE's short term assets (€24.4B) do not cover its long term liabilities (€94.9B).
Debt to Equity History and Analysis
Debt Level: DTE's debt to equity ratio (149.2%) is considered high.
Reducing Debt: DTE's debt to equity ratio has reduced from 150.4% to 149.2% over the past 5 years.
Debt Coverage: DTE's debt is well covered by operating cash flow (30.7%).
Interest Coverage: DTE's interest payments on its debt are well covered by EBIT (4.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Deutsche Telekom current dividend yield, its reliability and sustainability?
3.96%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DTE's dividend (3.96%) is higher than the bottom 25% of dividend payers in the German market (1.24%).
High Dividend: DTE's dividend (3.96%) is in the top 25% of dividend payers in the German market (3.77%)
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 (73.3%), 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 covered by earnings (51.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Tim Höttges (58yo)
6.5yrs
Tenure
€6,499,810
Compensation
Mr. Timotheus Höttges, also known as Tim, served as an Advisor at Deutsche Telekom Capital Partners Management GmbH. He has been a Member of the Data Privacy Advisory Board at Deutsche Telekom AG since Jan ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD7.41M) is above average for companies of similar size in the German market ($USD5.06M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Management Board | 6.5yrs | €6.50m | no data | |
| CFO & Member of Management Board | 1.5yrs | €2.82m | no data | |
| Board member of Technology & Innovation and Member of Management Board | 8.75yrs | €2.88m | no data | |
| Member of the Board of Management | 2.5yrs | €2.33m | no data | |
| Member of Management Board & Executive VP of Group Corporate Development | 1.5yrs | €2.81m | no data | |
| Member of Management Board | 3.5yrs | €2.34m | no data | |
| Member of the Management Board | 2.5yrs | €2.84m | no data | |
| Chief HR Officer | no data | €2.60m | no data | |
| Head of Group Accounting & Customer Finance | no data | no data | no data | |
| Group Chief Information Officer | no data | no data | no data | |
| Head of Investor Relations | 5.17yrs | no data | no data | |
| Head of the Legal | 9.92yrs | no data | no data |
3.0yrs
Average Tenure
53yo
Average Age
Experienced Management: DTE's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of Management Board | 6.5yrs | €6.50m | no data | |
| Chief HR Officer | no data | €2.60m | no data | |
| Chairman of Supervisory Board | 12.25yrs | €341.00k | no data | |
| Member of Supervisory Board | 6.75yrs | €101.00k | no data | |
| Member of Supervisory Board | 5.25yrs | €117.00k | no data | |
| Member of Supervisory Board | 6.75yrs | €161.50k | no data | |
| Member of Supervisory Board | 8.17yrs | €201.50k | no data | |
| Member of Supervisory Board | 10.17yrs | €146.00k | no data | |
| Deputy Chairman of Supervisory Board | 14.08yrs | €275.50k | no data | |
| Member of Supervisory Board | 7.5yrs | €120.00k | no data | |
| Member of Supervisory Board | 4.5yrs | €103.00k | no data | |
| Member of the Supervisory Board | 1.67yrs | €104.00k | no data |
6.8yrs
Average Tenure
58yo
Average Age
Experienced Board: DTE's board of directors are considered experienced (6.8 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: DB
- Founded: 1995
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: €71.666b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DTEG.Y | OTCPK (Pink Sheets LLC) | ADS EACH REPR 1 ORD NPV | US | USD | Nov 1996 | |
| DTEG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 1996 |
| DTE | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 1996 |
| DTE | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Nov 1996 |
| 0MPH | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | EUR | Nov 1996 |
| DTE | BIT (Borsa Italiana) | Yes | Ordinary Shares | IT | EUR | Nov 1996 |
| DTEA | XTRA (XETRA Trading Platform) | ADS EACH REPR 1 ORD NPV | DE | EUR | Nov 1996 | |
| DTE | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Nov 1996 |
| DTEA | DB (Deutsche Boerse AG) | ADS EACH REPR 1 ORD NPV | DE | EUR | Nov 1996 | |
| DTED | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | EUR | Nov 1996 |
| DTE N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Nov 1996 |
| DTE | WBAG (Wiener Boerse AG) | Yes | Ordinary Shares | AT | EUR | Nov 1996 |
| DTEL | ENXTBR (Euronext Brussels) | Yes | Ordinary Shares | BE | EUR | Nov 1996 |
| DEUTSCHETEL | BUSE (Budapest Stock Exchange) | Yes | Ordinary Shares | HU | HUF | Nov 1996 |
Biography
Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development. It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers. The company also provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators. In addition, it offers Internet services; Internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and networks under the T-Systems brand, as well as call center services. The company has 184 million mobile customers and 21 million broadband customers, as well as 28 million fixed-network lines. Deutsche Telekom AG was founded in 1995 and is headquartered in Bonn, Germany.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/14 21:20 |
| End of Day Share Price | 2020/07/14 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.