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Deutsche Telekom

BUSE:DEUTSCHETEL
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DEUTSCHETEL
BUSE
€72B
Market Cap
  1. Home
  2. HU
  3. Telecom
Company description

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide. The last earnings update was 48 days ago. More info.


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DEUTSCHETEL Share Price and Events
7 Day Returns
0%
BUSE:DEUTSCHETEL
-1.2%
Europe Telecom
-2.3%
HU Market
1 Year Returns
-
BUSE:DEUTSCHETEL
2.2%
Europe Telecom
10.5%
HU Market
DEUTSCHETEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Deutsche Telekom (DEUTSCHETEL) 0% 0% - - - -
Europe Telecom -1.2% 1.2% -0.2% 2.2% -6.2% -13.8%
HU Market -2.3% -2.3% -5.8% 10.5% 48.4% 103.1%
1 Year Return vs Industry and Market
  • No trading data on DEUTSCHETEL.
  • No trading data on DEUTSCHETEL.
Price Volatility
DEUTSCHETEL
Industry
5yr Volatility vs Market
Related Companies

DEUTSCHETEL Value

 Is Deutsche Telekom undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Deutsche Telekom to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Deutsche Telekom.

BUSE:DEUTSCHETEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year HU Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BUSE:DEUTSCHETEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HU Govt Bond Rate 3%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.332 (1 + (1- 30%) (117.11%))
0.735
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.96% + (0.8 * 5.96%)
7.73%

Discounted Cash Flow Calculation for BUSE:DEUTSCHETEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Deutsche Telekom is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BUSE:DEUTSCHETEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 7.73%)
2019 6,216.70 Analyst x9 5,770.74
2020 7,926.75 Analyst x12 6,830.27
2021 8,660.77 Analyst x10 6,927.41
2022 9,812.50 Analyst x4 7,285.60
2023 10,521.00 Analyst x2 7,251.27
2024 11,128.00 Est @ 5.77% 7,119.43
2025 11,676.23 Est @ 4.93% 6,934.30
2026 12,182.58 Est @ 4.34% 6,716.00
2027 12,660.58 Est @ 3.92% 6,478.82
2028 13,120.73 Est @ 3.63% 6,232.64
Present value of next 10 years cash flows €67,546.48
BUSE:DEUTSCHETEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €13,120.73 × (1 + 2.96%) ÷ (7.73% – 2.96%)
€283,328.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €283,328.52 ÷ (1 + 7.73%)10
€134,587.38
BUSE:DEUTSCHETEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €67,546.48 + €134,587.38
€202,133.86
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €202,133.86 / 4,742.46
€42.62
BUSE:DEUTSCHETEL Discount to Share Price
Calculation Result
Value per share (HUF) From above. HUF13,403.20
Current discount Discount to share price of HUF4,790.00
= -1 x (HUF4,790.00 - HUF13,403.20) / HUF13,403.20
64.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Deutsche Telekom is available for.
Intrinsic value
>50%
Share price is HUF4790 vs Future cash flow value of HUF13403.2
Current Discount Checks
For Deutsche Telekom to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Deutsche Telekom's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Deutsche Telekom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Deutsche Telekom's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Deutsche Telekom's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BUSE:DEUTSCHETEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €0.44
DB:DTE Share Price ** DB (2019-04-25) in EUR €15.25
Europe Telecom Industry PE Ratio Median Figure of 57 Publicly-Listed Telecom Companies 23.43x
Hungary Market PE Ratio Median Figure of 25 Publicly-Listed Companies 11.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Deutsche Telekom.

BUSE:DEUTSCHETEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:DTE Share Price ÷ EPS (both in EUR)

= 15.25 ÷ 0.44

34.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Telekom is overvalued based on earnings compared to the Europe Telecom industry average.
  • Deutsche Telekom is overvalued based on earnings compared to the Hungary market.
Price based on expected Growth
Does Deutsche Telekom's expected growth come at a high price?
Raw Data
BUSE:DEUTSCHETEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
21.3%per year
Europe Telecom Industry PEG Ratio Median Figure of 36 Publicly-Listed Telecom Companies 1.99x

*Line of best fit is calculated by linear regression .

BUSE:DEUTSCHETEL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.86x ÷ 21.3%

1.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Telekom is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Deutsche Telekom's assets?
Raw Data
BUSE:DEUTSCHETEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €6.12
DB:DTE Share Price * DB (2019-04-25) in EUR €15.25
Europe Telecom Industry PB Ratio Median Figure of 75 Publicly-Listed Telecom Companies 1.92x
Hungary Market PB Ratio Median Figure of 28 Publicly-Listed Companies 1.82x
BUSE:DEUTSCHETEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:DTE Share Price ÷ Book Value per Share (both in EUR)

= 15.25 ÷ 6.12

2.49x

* Primary Listing of Deutsche Telekom.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Deutsche Telekom is overvalued based on assets compared to the Europe Telecom industry average.
X
Value checks
We assess Deutsche Telekom's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Deutsche Telekom has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DEUTSCHETEL Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Deutsche Telekom expected to grow at an attractive rate?
  • Deutsche Telekom's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Deutsche Telekom's earnings growth is expected to exceed the Hungary market average.
  • Deutsche Telekom's revenue growth is positive but not above the Hungary market average.
Annual Growth Rates Comparison
Raw Data
BUSE:DEUTSCHETEL Future Growth Rates Data Sources
Data Point Source Value (per year)
BUSE:DEUTSCHETEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 21.3%
BUSE:DEUTSCHETEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 0.7%
Europe Telecom Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.6%
Hungary Market Earnings Growth Rate Market Cap Weighted Average 5%
Hungary Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BUSE:DEUTSCHETEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BUSE:DEUTSCHETEL Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 84,007 24,927 3
2022-12-31 83,508 23,286 5,597 5
2021-12-31 84,802 22,683 5,422 17
2020-12-31 83,489 21,364 4,531 21
2019-12-31 80,849 21,547 3,355 1
BUSE:DEUTSCHETEL Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 79,711 19,660 2,074
2018-12-31 78,118 17,948 2,166
2018-09-30 76,960 17,371 3,929
2018-06-30 76,052 17,326 3,326
2018-03-31 76,556 17,138 3,706
2017-12-31 77,272 17,196 3,461
2017-09-30 77,602 16,916 5
2017-06-30 77,425 16,665 551
2017-03-31 76,320 16,392 297
2016-12-31 75,243 15,533 2,675
2016-09-30 73,553 15,856 5,745
2016-06-30 72,530 15,245 5,501

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Deutsche Telekom's earnings are expected to grow significantly at over 20% yearly.
  • Deutsche Telekom's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BUSE:DEUTSCHETEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Deutsche Telekom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BUSE:DEUTSCHETEL Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 1.18 1.29 1.06 2.00
2021-12-31 1.14 1.28 0.98 10.00
2020-12-31 1.04 1.37 0.84 15.00
2019-12-31 0.87 1.10 0.70 14.00
BUSE:DEUTSCHETEL Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 0.44
2018-12-31 0.46
2018-09-30 0.83
2018-06-30 0.70
2018-03-31 0.78
2017-12-31 0.74
2017-09-30 0.00
2017-06-30 0.12
2017-03-31 0.06
2016-12-31 0.58
2016-09-30 1.25
2016-06-30 1.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Deutsche Telekom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Deutsche Telekom's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Deutsche Telekom has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DEUTSCHETEL Past Performance

  How has Deutsche Telekom performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Deutsche Telekom's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Deutsche Telekom's year on year earnings growth rate has been positive over the past 5 years.
  • Deutsche Telekom's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Deutsche Telekom's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
Deutsche Telekom's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Deutsche Telekom Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BUSE:DEUTSCHETEL Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 79,711.00 2,074.00
2018-12-31 78,118.00 2,166.00
2018-09-30 76,960.00 3,929.00
2018-06-30 76,052.00 3,326.00
2018-03-31 76,556.00 3,706.00
2017-12-31 77,272.00 3,461.00
2017-09-30 77,602.00 5.00
2017-06-30 77,425.00 551.00
2017-03-31 76,320.00 297.00
2016-12-31 75,243.00 2,675.00
2016-09-30 73,553.00 5,745.00
2016-06-30 72,530.00 5,501.00
2016-03-31 72,078.00 5,592.00
2015-12-31 71,318.00 3,254.00
2015-09-30 69,887.00 2,198.00 5,139.00
2015-06-30 67,921.00 1,895.00 9,194.00
2015-03-31 65,132.00 1,894.00 13,835.00
2014-12-31 64,602.00 2,924.00
2014-09-30 61,321.00 2,282.00 18,332.00
2014-06-30 61,198.00 2,364.00 18,225.00
2014-03-31 61,241.00 2,183.00 18,285.00
2013-12-31 60,132.00 930.00 18,543.00
2013-09-30 59,174.00 2,323.00 17,992.00
2013-06-30 58,300.00 -5,286.00 18,483.00
2013-03-31 57,522.00 -5,334.00 18,515.00
2012-12-31 58,169.00 -5,353.00 18,930.00
2012-09-30 58,373.00 -7,334.00 19,080.00
2012-06-30 58,392.00 756.00 19,259.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Deutsche Telekom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Deutsche Telekom used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Deutsche Telekom has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Deutsche Telekom's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Deutsche Telekom has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DEUTSCHETEL Health

 How is Deutsche Telekom's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Deutsche Telekom's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Deutsche Telekom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Deutsche Telekom's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Deutsche Telekom's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Deutsche Telekom Company Filings, last reported 2 months ago.

BUSE:DEUTSCHETEL Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 42,762.00 65,946.00 8,421.00
2018-12-31 43,437.00 59,804.00 3,691.00
2018-09-30 43,482.00 58,528.00 5,147.00
2018-06-30 41,403.00 58,616.00 5,528.00
2018-03-31 43,691.00 55,179.00 6,536.00
2017-12-31 42,471.00 54,894.00 3,320.00
2017-09-30 39,054.00 56,024.00 5,302.00
2017-06-30 38,594.00 58,308.00 4,557.00
2017-03-31 39,818.00 62,640.00 14,449.00
2016-12-31 38,845.00 62,103.00 7,762.00
2016-09-30 37,621.00 59,930.00 11,721.00
2016-06-30 36,968.00 60,851.00 11,379.00
2016-03-31 38,444.00 60,110.00 12,161.00
2015-12-31 38,150.00 60,453.00 9,702.00
2015-09-30 36,508.00 55,309.00 6,896.00
2015-06-30 35,961.00 56,582.00 6,803.00
2015-03-31 36,996.00 55,571.00 7,802.00
2014-12-31 34,066.00 53,766.00 7,750.00
2014-09-30 33,977.00 51,911.00 9,958.00
2014-06-30 32,501.00 48,439.00 7,188.00
2014-03-31 32,766.00 48,213.00 10,401.00
2013-12-31 32,063.00 50,153.00 8,085.00
2013-09-30 32,015.00 47,844.00 7,905.00
2013-06-30 31,250.00 48,837.00 7,343.00
2013-03-31 31,013.00 43,548.00 6,036.00
2012-12-31 30,531.00 42,834.00 4,127.00
2012-09-30 30,259.00 43,826.00 4,788.00
2012-06-30 37,603.00 46,377.00 5,466.00
  • Deutsche Telekom's level of debt (154.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (151.5% vs 154.2% today).
  • Debt is well covered by operating cash flow (29.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.8x coverage).
X
Financial health checks
We assess Deutsche Telekom's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Deutsche Telekom has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DEUTSCHETEL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.59%
Current annual income from Deutsche Telekom dividends. Estimated to be 5.28% next year.
If you bought HUF2,000 of Deutsche Telekom shares you are expected to receive HUF92 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Deutsche Telekom's pays a higher dividend yield than the bottom 25% of dividend payers in Hungary (2.28%).
  • Deutsche Telekom's dividend is below the markets top 25% of dividend payers in Hungary (5.67%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BUSE:DEUTSCHETEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Europe Telecom Industry Average Dividend Yield Market Cap Weighted Average of 48 Stocks 4.9%
Hungary Market Average Dividend Yield Market Cap Weighted Average of 14 Stocks 3%
Hungary Minimum Threshold Dividend Yield 10th Percentile 1.9%
Hungary Bottom 25% Dividend Yield 25th Percentile 2.3%
Hungary Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BUSE:DEUTSCHETEL Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.77 1.00
2022-12-31 0.90 4.00
2021-12-31 0.85 17.00
2020-12-31 0.80 21.00
2019-12-31 0.76 19.00
BUSE:DEUTSCHETEL Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-21 0.700 4.643
2018-08-09 0.700 4.855
2018-02-23 0.650 4.760
2017-03-02 0.600 3.863
2016-02-25 0.550 3.585
2015-02-26 0.500 3.102
2014-05-16 0.500 3.980
2013-02-28 0.500 4.861
2012-12-06 0.700 8.086
2012-02-24 0.700 7.919
2011-02-25 0.700 7.289
2010-02-25 0.780 7.904
2009-01-30 0.780 8.482

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Deutsche Telekom's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess Deutsche Telekom's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Deutsche Telekom afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Deutsche Telekom has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DEUTSCHETEL Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim Höttges
COMPENSATION €5,824,712
AGE 56
TENURE AS CEO 5.4 years
CEO Bio

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 Telekom AG since January 1, 2014 and has been its Member of Management Board since December 5, 2006 and has been with it since 2000. Mr. Höttges served as the Deputy Chairman of Management Board of Deutsche Telekom AG from January 1, 2013 to December 31, 2013. He served as the Chief Financial Officer at Deutsche Telekom AG from March 1, 2009 to December 2013. He headed European operations as a Member of Management Board at T-Mobile International AG & Co. KG from January 2003 to December 2006. He served as Member of Management Board at T-Home, Sales & Service from December 5, 2006 to March 2009. In this position, he was in charge of the fixed-network and broadband business, as well as integrated sales and service in Germany. Mr. Höttges has international telecoms experience. He was in charge of sales activities and customer care at the European subsidiaries of T-Mobile in Germany, the United Kingdom, The Netherlands, Austria and the Czech Republic. He has the strong support of both parent companies, with his extensive European-wide mobile experience and was instrumental in the forming of the Deutsche Telekom and France Telecom Global Procurement Alliance. He served as Managing Director of Telekom Deutschland GmbH from April 2002 to January 2005 and its Chief Financial Officer since September 2000. Mr. Hottges started his professional career in 1989 with the management consultancy Mummert Partner. He has been a Director/Supervisory Board Member at FC Bayern München AG since February 2010. He has been Chairman of the supervisory Board at Telekom Deutschland GmbH since July 2009 and its Member of supervisory Board since April 2005. Mr. Höttges kicked off his career as a consultant at the VIAG Group in Munich. He became divisional manager in 1997 of VIAG Group. From 1992 to 2000, he served in various positions for the VIAG Group in Munich, among them Senior Vice President for Controlling and Mergers & Acquisitions and project leader for the merger between VIAG AG and VEBA AG to E.ON AG since 1999. While at the VIAG Group, he held various divisional and project management positions, in addition to his membership on the Extended Management Board responsible for controlling, corporate planning, and mergers and acquisitions. He has been the Chairman of the Board at T-Mobile US, Inc. since April 30, 2013. He served as the Non-Executive Chairman and Director of Orange Home UK Limited since April 2010. He served as Chairman of EE Limited. He has been a Non-Independent & Non-Executive Director of BT Group plc, Great Britain since January 29, 2016. He has been a Member of Supervisory Board at Henkel AG & Co. KGaA since April 11, 2016. He served as a Non-Executive Director of EE Limited until February 1, 2014. He served as a Non-Executive Director of Hellenic Telecommunications Organization SA from December 6, 2011 to May 23, 2013. Mr. Höttges completed his studies of Business Administration and Economics at the University of Cologne.

CEO Compensation
  • Tim's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Tim to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Deutsche Telekom management team in years:

1.4
Average Tenure
52
Average Age
  • The average tenure for the Deutsche Telekom management team is less than 2 years, this suggests a new team.
Management Team

Tim Höttges

TITLE
Chairman of Management Board & CEO
COMPENSATION
€6M
AGE
56
TENURE
5.4 yrs

Christian Illek

TITLE
CFO & Member of Management Board
COMPENSATION
€3M
AGE
54
TENURE
0.4 yrs

Claudia Nemat

TITLE
Board member of Technology & Innovation and Member of Management Board
COMPENSATION
€3M
AGE
50
TENURE
7.7 yrs

Thomas Kremer

TITLE
Data Privacy
COMPENSATION
€2M
AGE
60
TENURE
7 yrs

Dirk Wössner

TITLE
Member of the Board of Management
COMPENSATION
€5M
AGE
49
TENURE
1.4 yrs

Srini Gopalan

TITLE
Member of Management Board
COMPENSATION
€2M
AGE
47
TENURE
2.4 yrs

Adel Al-Saleh

TITLE
Member of the Management Board
COMPENSATION
€4M
AGE
54
TENURE
1.4 yrs

Thorsten Langheim

TITLE
Member of Executive Board & Executive VP of Group Corporate Development
AGE
52
TENURE
0.4 yrs

Birgit Bohle

TITLE
Chief Human Resources Officer
AGE
45
TENURE
0.4 yrs

Guillaume Maisondieu

TITLE
Head of Group Accounting & Customer Finance
Board of Directors Tenure

Average tenure and age of the Deutsche Telekom board of directors in years:

6
Average Tenure
58
Average Age
  • The tenure for the Deutsche Telekom board of directors is about average.
Board of Directors

Ulrich Lehner

TITLE
Chairman of Supervisory Board
COMPENSATION
€325K
AGE
72
TENURE
11.2 yrs

Lothar Schröder

TITLE
Deputy Chairman of Supervisory Board
COMPENSATION
€264K
AGE
59
TENURE
13 yrs

Dagmar Kollmann

TITLE
Member of Supervisory Board
COMPENSATION
€206K
AGE
54
TENURE
7.1 yrs

Karl-Heinz Streibich

TITLE
Member of Supervisory Board
COMPENSATION
€145K
AGE
66
TENURE
5.7 yrs

Sibyl Spoo

TITLE
Member of Supervisory Board
COMPENSATION
€147K
AGE
57
TENURE
9.1 yrs

Steffi Kreusel

TITLE
Member of Supervisory Board
COMPENSATION
€122K
AGE
56
TENURE
6.4 yrs

Lars Hinrichs

TITLE
Member of Supervisory Board
COMPENSATION
€103K
AGE
42
TENURE
5.7 yrs

Josef Bednarski

TITLE
Member of Supervisory Board
COMPENSATION
€189K
AGE
64
TENURE
5.6 yrs

Michael Kaschke

TITLE
Member of Supervisory Board
COMPENSATION
€120K
AGE
61
TENURE
4.2 yrs

Nicole Koch

TITLE
Member of Supervisory Board
COMPENSATION
€92K
AGE
46
TENURE
3.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HUF) Value (HUF)
X
Management checks
We assess Deutsche Telekom's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Deutsche Telekom has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DEUTSCHETEL News

Simply Wall St News

DEUTSCHETEL Company Info

Description

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 178 million mobile customers, and approximately 28 million fixed-network and 20 million broadband lines. Deutsche Telekom AG was founded in 1995 and is headquartered in Bonn, Germany.

Details
Name: Deutsche Telekom AG
DEUTSCHETEL
Exchange: BUSE
Founded: 1995
€23,388,589,497,937
4,742,458,596
Website: http://www.telekom.com
Address: Deutsche Telekom AG
Friedrich-Ebert-Allee 140,
Bonn,
North Rhine-Westphalia, 53113,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB DTE Ordinary Shares Deutsche Boerse AG DE EUR 18. Nov 1996
OTCPK DTEG.F Ordinary Shares Pink Sheets LLC US USD 18. Nov 1996
XTRA DTE Ordinary Shares XETRA Trading Platform DE EUR 18. Nov 1996
LSE 0MPH Ordinary Shares London Stock Exchange GB EUR 18. Nov 1996
SWX DTE Ordinary Shares SIX Swiss Exchange CH CHF 18. Nov 1996
ENXTBR DTEL Ordinary Shares Euronext Brussels BE EUR 18. Nov 1996
BIT DTE Ordinary Shares Borsa Italiana IT EUR 18. Nov 1996
WBAG DTE Ordinary Shares Wiener Boerse AG AT EUR 18. Nov 1996
BUSE DEUTSCHETEL Ordinary Shares Budapest Stock Exchange HU HUF 18. Nov 1996
BMV DTE N Ordinary Shares Bolsa Mexicana de Valores MX MXN 18. Nov 1996
BATS-CHIXE DTED Ordinary Shares BATS 'Chi-X Europe' GB EUR 18. Nov 1996
OTCPK DTEG.Y ADS EACH REPR 1 ORD NPV Pink Sheets LLC US USD 18. Nov 1996
DB DTEA ADS EACH REPR 1 ORD NPV Deutsche Boerse AG DE EUR 18. Nov 1996
XTRA DTEA ADS EACH REPR 1 ORD NPV XETRA Trading Platform DE EUR 18. Nov 1996
Number of employees
Current staff
Staff numbers
214,609
Deutsche Telekom employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 22:40
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/06/22
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.