OTCPK:DTEG.F

Stock Analysis Report

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

-0.06%

OTCPK:DTEG.F

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

2.1%

OTCPK:DTEG.F

7.9%

US Telecom

1.6%

US Market

DTEG.F underperformed the Telecom industry which returned 7.9% over the past year.

DTEG.F matched the United States of America Market (1.6%) over the past year.


Share holder returns

DTEG.FIndustryMarket
7 Day-0.06%-2.9%-0.02%
30 Day1.3%4.4%2.7%
90 Day-3.6%8.4%1.4%
1 Year2.1%2.1%13.6%7.9%3.8%1.6%
3 Year-2.5%-2.5%15.6%-1.2%45.2%35.8%
5 Year9.8%9.8%33.5%2.9%61.8%44.1%

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

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Deutsche Telekom is overvalued based on earnings compared to the US Telecom industry average.

Deutsche Telekom is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Deutsche Telekom is poor value based on expected growth next year.


Price Based on Value of Assets

Deutsche Telekom is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Deutsche Telekom's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).

Deutsche Telekom's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

Deutsche Telekom's revenue growth is positive but not above the United States of America market average.

Deutsche Telekom's earnings growth is positive but not above the United States of America market average.

Deutsche Telekom's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Deutsche Telekom is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Deutsche Telekom's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

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 US Telecom industry average.


Return on Equity

Deutsche Telekom has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Deutsche Telekom used its assets less efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Deutsche Telekom has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Deutsche Telekom's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Deutsche Telekom's level of debt (150.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (149.1% vs 150.4% today).

Debt is well covered by operating cash flow (32.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

5.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Deutsche Telekom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Deutsche Telekom's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are not well covered by earnings (0.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Tim Höttges (57yo)

5.7yrs

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

Tim's remuneration is lower than average for companies of similar size in United States of America.

Tim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.7yrs

Average Tenure

53yo

Average Age

The average tenure for the Deutsche Telekom management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

59yo

Average Age

The tenure for the Deutsche Telekom board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Thorsten Langheim (53yo)

    Member of Executive Board & Executive VP of Group Corporate Development

    • Tenure: 0.7yrs
  • Tim Höttges (57yo)

    Chairman of Management Board & CEO

    • Tenure: 5.7yrs
    • Compensation: €5.82m
  • Adel Al-Saleh (55yo)

    Member of the Management Board

    • Tenure: 1.7yrs
    • Compensation: €3.60m
  • Thomas Kremer (61yo)

    Data Privacy

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

    Member of Management Board

    • Tenure: 2.7yrs
    • 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: 7.9yrs
    • Compensation: €2.89m
  • Dirk Wössner (50yo)

    Member of the Board of Management

    • Tenure: 1.7yrs
    • Compensation: €4.74m
  • Christian Illek (55yo)

    CFO & Member of Management Board

    • Tenure: 0.7yrs
    • Compensation: €2.72m
  • Birgit Bohle (46yo)

    Chief Human Resources Officer

    • Tenure: 0.7yrs

Board Members

  • Ulrich Lehner (73yo)

    Chairman of Supervisory Board

    • Tenure: 11.4yrs
    • Compensation: €325.00k
  • Lars Hinrichs (43yo)

    Member of Supervisory Board

    • Tenure: 5.9yrs
    • Compensation: €103.00k
  • Michael Kaschke (62yo)

    Member of Supervisory Board

    • Tenure: 4.4yrs
    • Compensation: €120.00k
  • Karl-Heinz Streibich (67yo)

    Member of Supervisory Board

    • Tenure: 5.9yrs
    • Compensation: €144.50k
  • Dagmar Kollmann (55yo)

    Member of Supervisory Board

    • Tenure: 7.3yrs
    • Compensation: €205.50k
  • Sibyl Spoo (58yo)

    Member of Supervisory Board

    • Tenure: 9.3yrs
    • 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: 6.7yrs
    • Compensation: €122.00k
  • Josef Bednarski (65yo)

    Member of Supervisory Board

    • Tenure: 5.8yrs
    • Compensation: €189.00k
  • Nicole Koch (47yo)

    Member of Supervisory Board

    • Tenure: 3.7yrs
    • 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: DTEG.F
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €72.313b
  • Listing Market Cap: €79.913b
  • 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 Analysis2019/09/19 23:45
End of Day Share Price2019/09/17 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.