OTCPK:DTEG.Y

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record second-rate dividend payer.


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: DTEG.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.4%

DTEG.Y

-2.6%

US Telecom

-2.4%

US Market


1 Year Return

-0.5%

DTEG.Y

-13.2%

US Telecom

12.0%

US Market

Return vs Industry: DTEG.Y exceeded the US Telecom industry which returned -13.7% over the past year.

Return vs Market: DTEG.Y underperformed the US Market which returned 10.9% over the past year.


Shareholder returns

DTEG.YIndustryMarket
7 Day-6.4%-2.6%-2.4%
30 Day-6.8%-3.9%-6.5%
90 Day2.4%4.0%8.4%
1 Year3.4%-0.5%-8.7%-13.2%14.5%12.0%
3 Year1.4%-10.8%4.0%-10.9%34.8%25.8%
5 Year18.9%-2.2%30.4%1.1%82.1%61.6%

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 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: DTEG.Y ($16.74) is trading below our estimate of fair value ($187.28)

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


Price To Earnings Ratio

PE vs Industry: DTEG.Y is poor value based on its PE Ratio (18.4x) compared to the US Telecom industry average (11.3x).

PE vs Market: DTEG.Y is poor value based on its PE Ratio (18.4x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: DTEG.Y is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: DTEG.Y is overvalued based on its PB Ratio (1.9x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is Deutsche Telekom forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTEG.Y's forecast earnings growth (12.4% per year) is above the savings rate (2.2%).

Earnings vs Market: DTEG.Y's earnings (12.4% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: DTEG.Y's revenue (3.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: DTEG.Y's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DTEG.Y's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Deutsche Telekom performed over the past 5 years?

0.05%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTEG.Y has a large one-off loss of €2.2B impacting its June 30 2020 financial results.

Growing Profit Margin: DTEG.Y's current net profit margins (4.1%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: DTEG.Y's earnings have grown by 0.05% per year over the past 5 years.

Accelerating Growth: DTEG.Y's earnings growth over the past year (46.1%) exceeds its 5-year average (0.05% per year).

Earnings vs Industry: DTEG.Y earnings growth over the past year (46.1%) exceeded the Telecom industry -12.9%.


Return on Equity

High ROE: DTEG.Y's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Deutsche Telekom's financial position?


Financial Position Analysis

Short Term Liabilities: DTEG.Y's short term assets (€37.9B) do not cover its short term liabilities (€39.0B).

Long Term Liabilities: DTEG.Y's short term assets (€37.9B) do not cover its long term liabilities (€157.5B).


Debt to Equity History and Analysis

Debt Level: DTEG.Y's debt to equity ratio (158.6%) is considered high.

Reducing Debt: DTEG.Y's debt to equity ratio has increased from 157.2% to 158.6% over the past 5 years.

Debt Coverage: DTEG.Y's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: DTEG.Y's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.23%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DTEG.Y's dividend (4.19%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: DTEG.Y's dividend (4.19%) is low compared to the top 25% of dividend payers in the US market (5.03%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.9%), DTEG.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTEG.Y's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Tim Höttges (58 yo)

6.67yrs

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 ($USD7.57M) is below average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timotheus Höttges
Chairman of Management Board6.67yrs€6.50mno data
Christian Illek
CFO & Member of Management Board1.67yrs€2.82mno data
Claudia Nemat
Board member of Technology & Innovation and Member of Management Board8.92yrs€2.88mno data
Dirk Wössner
Member of the Board of Management2.67yrs€2.33mno data
Thorsten Langheim
Member of Management Board & Executive VP of Group Corporate Development1.67yrs€2.81mno data
Srinivasan Gopalan
Member of Management Board3.67yrs€2.34mno data
Adel Al-Saleh
Member of the Management Board2.67yrs€2.84mno data
Birgit Bohle
Chief HR Officerno data€2.60mno data
Guillaume Maisondieu
Head of Group Accounting & Customer Financeno datano datano data
Peter Leukert
Group Chief Information Officerno datano datano data
Hannes Wittig
Head of Investor Relations5.33yrsno datano data
Claudia Junker
Head of the Legal10.08yrsno datano data

3.2yrs

Average Tenure

53yo

Average Age

Experienced Management: DTEG.Y's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timotheus Höttges
Chairman of Management Board6.67yrs€6.50mno data
Birgit Bohle
Chief HR Officerno data€2.60mno data
Ulrich Lehner
Chairman of Supervisory Board12.42yrs€341.00kno data
Lars Hinrichs
Member of Supervisory Board6.92yrs€101.00kno data
Michael Kaschke
Member of Supervisory Board5.42yrs€117.00kno data
Karl-Heinz Streibich
Member of Supervisory Board6.92yrs€161.50kno data
Dagmar Kollmann
Member of Supervisory Board8.33yrs€201.50kno data
Sibylle Spoo
Member of Supervisory Board10.33yrs€146.00kno data
Lothar Schröder
Deputy Chairman of Supervisory Board14.25yrs€275.50kno data
Petra Kreusel
Member of Supervisory Board7.67yrs€120.00kno data
Nicole Koch
Member of Supervisory Board4.67yrs€103.00kno data
Frank Sauerland
Member of the Supervisory Board1.83yrs€104.00kno data

6.9yrs

Average Tenure

58yo

Average Age

Experienced Board: DTEG.Y's board of directors are considered experienced (6.9 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: DTEG.Y
  • Exchange: OTCPK
  • Founded: 1995
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: €67.302b
  • Listing Market Cap: €78.195b
  • 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
DTEG.YOTCPK (Pink Sheets LLC)ADS EACH REPR 1 ORD NPVUSUSDNov 1996
DTEG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 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
DTEXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURNov 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 Analysis2020/09/26 06:29
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.