company background image
DEUT

Deutsche Telekom BUSE:DEUTSCHETEL Stock Report

Last Price

Ft7.62k

Market Cap

Ft35.9t

7D

0%

1Y

20.1%

Updated

24 Jul, 2022

Data

Company Financials +
DEUTSCHETEL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance5/6
Financial Health4/6
Dividends3/6

DEUTSCHETEL Stock Overview

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

Deutsche Telekom Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Deutsche Telekom
Historical stock prices
Current Share Price€7,618.00
52 Week High€7,618.00
52 Week Low€5,618.00
Beta0.59
1 Month Change4.83%
3 Month Change18.66%
1 Year Change20.06%
3 Year Change53.53%
5 Year Changen/a
Change since IPO69.52%

Recent News & Updates

Shareholder Returns

DEUTSCHETELHU TelecomHU Market
7D0%-3.2%2.3%
1Y20.1%-5.4%-21.9%

Return vs Industry: DEUTSCHETEL exceeded the Hungarian Telecom industry which returned -5.4% over the past year.

Return vs Market: DEUTSCHETEL exceeded the Hungarian Market which returned -21.9% over the past year.

Price Volatility

Is DEUTSCHETEL's price volatile compared to industry and market?
DEUTSCHETEL volatility
DEUTSCHETEL Average Weekly Movementn/a
Telecom Industry Average Movement4.3%
Market Average Movement5.1%
10% most volatile stocks in HU Market7.8%
10% least volatile stocks in HU Market3.0%

Stable Share Price: Insufficient data to determine DEUTSCHETEL's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine DEUTSCHETEL's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995216,109Tim Hottgeshttps://www.telekom.com

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 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.

Deutsche Telekom Fundamentals Summary

How do Deutsche Telekom's earnings and revenue compare to its market cap?
DEUTSCHETEL fundamental statistics
Market Cap€90.31b
Earnings (TTM)€7.19b
Revenue (TTM)€113.33b

12.6x

P/E Ratio

0.8x

P/S Ratio

Is DEUTSCHETEL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DEUTSCHETEL income statement (TTM)
Revenue€113.33b
Cost of Revenue€69.14b
Gross Profit€44.19b
Other Expenses€37.00b
Earnings€7.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)1.45
Gross Margin38.99%
Net Profit Margin6.34%
Debt/Equity Ratio126.1%

How did DEUTSCHETEL perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

43%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is DEUTSCHETEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DEUTSCHETEL?

Other financial metrics that can be useful for relative valuation.

DEUTSCHETEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA8.2x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does DEUTSCHETEL's PE Ratio compare to its peers?

DEUTSCHETEL PE Ratio vs Peers
The above table shows the PE ratio for DEUTSCHETEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.9x
MTELEKOM Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság
4.6x2.1%Ft312.4b
9432 Nippon Telegraph and Telephone
11.7x3.2%JP¥13.9t
ETISALAT Emirates Telecommunications Group Company PJSC
25.7x4.3%د.إ241.8b
7010 Saudi Telecom
17.7x6.5%ر.س201.7b
DEUTSCHETEL Deutsche Telekom
12.6x12.8%Ft90.3b

Price-To-Earnings vs Peers: DEUTSCHETEL is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (14.9x).


Price to Earnings Ratio vs Industry

How does DEUTSCHETEL's PE Ratio compare vs other companies in the European Telecom Industry?

Price-To-Earnings vs Industry: DEUTSCHETEL is good value based on its Price-To-Earnings Ratio (12.6x) compared to the European Telecom industry average (16.2x)


Price to Earnings Ratio vs Fair Ratio

What is DEUTSCHETEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DEUTSCHETEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DEUTSCHETEL's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of DEUTSCHETEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DEUTSCHETEL (HUF7618) is trading below our estimate of fair value (HUF67098.97)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DEUTSCHETEL's forecast earnings growth (12.8% per year) is above the savings rate (1.1%).

Earnings vs Market: DEUTSCHETEL's earnings (12.8% per year) are forecast to grow faster than the Hungarian market (8.9% per year).

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

Revenue vs Market: DEUTSCHETEL's revenue (2.9% per year) is forecast to grow faster than the Hungarian market (1.4% per year).

High Growth Revenue: DEUTSCHETEL's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DEUTSCHETEL's Return on Equity is forecast to be low in 3 years time (19.5%).


Discover growth companies

Past Performance

How has Deutsche Telekom performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DEUTSCHETEL has high quality earnings.

Growing Profit Margin: DEUTSCHETEL's current net profit margins (6.3%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: DEUTSCHETEL's earnings have grown significantly by 26.7% per year over the past 5 years.

Accelerating Growth: DEUTSCHETEL's earnings growth over the past year (72.1%) exceeds its 5-year average (26.7% per year).

Earnings vs Industry: DEUTSCHETEL earnings growth over the past year (72.1%) exceeded the Telecom industry 24.3%.


Return on Equity

High ROE: DEUTSCHETEL's Return on Equity (10.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Deutsche Telekom's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DEUTSCHETEL's short term assets (€36.5B) exceed its short term liabilities (€36.5B).

Long Term Liabilities: DEUTSCHETEL's short term assets (€36.5B) do not cover its long term liabilities (€168.3B).


Debt to Equity History and Analysis

Debt Level: DEUTSCHETEL's net debt to equity ratio (114.9%) is considered high.

Reducing Debt: DEUTSCHETEL's debt to equity ratio has reduced from 157.2% to 126.1% over the past 5 years.

Debt Coverage: DEUTSCHETEL's debt is well covered by operating cash flow (30%).

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


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: DEUTSCHETEL's dividend (3.52%) is higher than the bottom 25% of dividend payers in the Hungarian market (3.24%).

High Dividend: DEUTSCHETEL's dividend (3.52%) is low compared to the top 25% of dividend payers in the Hungarian market (5.85%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.4%), DEUTSCHETEL's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.6%), DEUTSCHETEL's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.6yrs

Average management tenure


CEO

Tim Hottges (60 yo)

15.58yrs

Tenure

€7,034,801

Compensation

Mr. Timotheus Hottges, also known as Tim, is Chairman of the board at T-Mobile USA, Inc since April 30, 2013 and serves its Director. He had been a Member of Supervisory Board at Henkel AG & Co. KGaA since...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD7.19M) is above average for companies of similar size in the Hungarian market ($USD4.18M).

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


Leadership Team

Experienced Management: DEUTSCHETEL's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: DEUTSCHETEL's board of directors are considered experienced (6.5 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 been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Deutsche Telekom AG
  • Ticker: DEUTSCHETEL
  • Exchange: BUSE
  • Founded: 1995
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: €90.310b
  • Listing Market Cap: €35.943t
  • Shares outstanding: 4.97b
  • Website: https://www.telekom.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/24 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.