DB:DTE

Stock Analysis Report

Deutsche Telekom

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.


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


Market Performance


7 Day Return

3.1%

DTE

3.0%

DE Telecom

1.7%

DE Market


1 Year Return

12.1%

DTE

6.2%

DE Telecom

7.2%

DE Market

Return vs Industry: DTE exceeded the German Telecom industry which returned 6.2% over the past year.

Return vs Market: DTE exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

DTEIndustryMarket
7 Day3.1%3.0%1.7%
30 Day5.9%6.0%2.4%
90 Day9.3%12.1%2.3%
1 Year17.4%12.1%11.5%6.2%10.6%7.2%
3 Year21.6%7.1%16.1%1.9%18.4%8.1%
5 Year70.6%40.9%55.4%27.4%42.3%22.9%

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 (€16.18) is trading below our estimate of fair value (€45.04)

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


Price To Earnings Ratio

PE vs Industry: DTE is poor value based on its PE Ratio (30.3x) compared to the Telecom industry average (30.3x).

PE vs Market: DTE is poor value based on its PE Ratio (30.3x) compared to the German market (19x).


Price to Earnings Growth Ratio

PEG Ratio: DTE is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: DTE is overvalued based on its PB Ratio (2.7x) compared to the DE Telecom industry average (1.3x).


Next Steps

  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTE's forecast earnings growth (12.9% per year) is above the savings rate (0.2%).

Earnings vs Market: DTE's earnings (12.9% per year) are forecast to grow faster than the German market (12.7% per year).

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

Revenue vs Market: DTE's revenue (2.3% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: DTE's revenue (2.3% 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 (14.4%).


Next Steps

Past Performance

How has Deutsche Telekom performed over the past 5 years?

-1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DTE's earnings have declined by -1.3% per year over the past 5 years.

Accelerating Growth: DTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DTE had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the Telecom industry average (-27.1%).


Return on Equity

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


Return on Assets

ROA vs Industry: DTE has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: DTE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Deutsche Telekom's financial position?


Financial Position Analysis

Short Term Liabilities: DTE's short term assets (€21.8B) do not cover its short term liabilities (€35.1B)

Long Term Liabilities: DTE's short term assets (21.8B) do not cover its long term liabilities (86.5B)


Debt to Equity History and Analysis

Debt Level: DTE's debt to equity ratio (150.4%) is considered high

Reducing Debt: DTE's debt to equity ratio has increased from 149.1% to 150.4% over the past 5 years.

Debt Coverage: DTE's debt is well covered by operating cash flow (32.5%).

Interest Coverage: DTE's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: DTE has a high level of physical assets or inventory.

Debt Coverage by Assets: DTE's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

4.34%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.5%markettop25%3.8%industryaverage4.5%forecastin3Years4.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DTE's dividend (4.34%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: DTE's dividend (4.34%) is in the top 25% of dividend payers in the German market (3.83%)

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 high payout ratio (131.5%), DTE's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTE's dividends in 3 years are forecast to be covered by earnings (59% payout ratio).


Next Steps

Management

What is the CEO of Deutsche Telekom's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Tim Höttges (57yo)

5.8yrs

Tenure

€5,824,712

Compensation

Mr. Timotheus Höttges, also known as Tim, serves as an Advisor at Deutsche Telekom Capital Partners Management GmbH. He has been the Chairman of Management Board and Chief Executive Officer at Deutsche Tel ...


CEO Compensation Analysis

Compensation vs. Market: Tim's total compensation ($USD6.49M) is about average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: DTE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

6.4yrs

Average Tenure

59yo

Average Age

Experienced Board: DTE's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Thorsten Langheim (53yo)

    Member of Executive Board & Executive VP of Group Corporate Development

    • Tenure: 0.8yrs
  • Tim Höttges (57yo)

    Chairman of Management Board & CEO

    • Tenure: 5.8yrs
    • Compensation: €5.82m
  • Adel Al-Saleh (55yo)

    Member of the Management Board

    • Tenure: 1.8yrs
    • Compensation: €3.60m
  • Thomas Kremer (61yo)

    Data Privacy

    • Tenure: 7.3yrs
    • Compensation: €2.33m
  • Srini Gopalan (48yo)

    Member of Management Board

    • Tenure: 2.8yrs
    • Compensation: €2.34m
  • Guillaume Maisondieu

    Head of Group Accounting & Customer Finance

    • Tenure: 0yrs
  • Claudia Nemat (51yo)

    Board member of Technology & Innovation and Member of Management Board

    • Tenure: 8yrs
    • Compensation: €2.89m
  • Dirk Wössner (50yo)

    Member of the Board of Management

    • Tenure: 1.8yrs
    • Compensation: €4.74m
  • Christian Illek (55yo)

    CFO & Member of Management Board

    • Tenure: 0.8yrs
    • Compensation: €2.72m
  • Birgit Bohle (46yo)

    Chief Human Resources Officer

    • Tenure: 0.8yrs

Board Members

  • Ulrich Lehner (73yo)

    Chairman of Supervisory Board

    • Tenure: 11.5yrs
    • Compensation: €325.00k
  • Lars Hinrichs (43yo)

    Member of Supervisory Board

    • Tenure: 6yrs
    • Compensation: €103.00k
  • Michael Kaschke (62yo)

    Member of Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €120.00k
  • Karl-Heinz Streibich (67yo)

    Member of Supervisory Board

    • Tenure: 6yrs
    • Compensation: €144.50k
  • Dagmar Kollmann (55yo)

    Member of Supervisory Board

    • Tenure: 7.4yrs
    • Compensation: €205.50k
  • Sibyl Spoo (58yo)

    Member of Supervisory Board

    • Tenure: 9.4yrs
    • Compensation: €147.00k
  • Lothar Schröder (60yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 13.3yrs
    • Compensation: €264.00k
  • Steffi Kreusel (57yo)

    Member of Supervisory Board

    • Tenure: 6.8yrs
    • Compensation: €122.00k
  • Josef Bednarski (65yo)

    Member of Supervisory Board

    • Tenure: 5.9yrs
    • Compensation: €189.00k
  • Nicole Koch (47yo)

    Member of Supervisory Board

    • Tenure: 3.8yrs
    • Compensation: €91.50k

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: €76.553b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTEXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 1996
DTEG.YOTCPK (Pink Sheets LLC)ADS EACH REPR 1 ORD NPVUSUSDNov 1996
DTEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1996
DTESWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFNov 1996
0MPHLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1996
DTEBIT (Borsa Italiana)YesOrdinary SharesITEURNov 1996
DTEAXTRA (XETRA Trading Platform)ADS EACH REPR 1 ORD NPVDEEURNov 1996
DTEG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1996
DTEADB (Deutsche Boerse AG)ADS EACH REPR 1 ORD NPVDEEURNov 1996
DTEDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1996
DTE NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1996
DTEWBAG (Wiener Boerse AG)YesOrdinary SharesATEURNov 1996
DTELENXTBR (Euronext Brussels)YesOrdinary SharesBEEURNov 1996
DEUTSCHETELBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFNov 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 20:47
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.