Deutsche Telekom (DTE) AI Stock Analysis

• Market Cap: €159.20B
• Dividend Yield: 2.81%
• Average Volume (3M): 6.70M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.50
• Revenue Growth: 4.90%
• EPS Growth: 176.57%
• Country: DE
• Employees: 198,194
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 0.50
• Shares Outstanding: 4,986,458,500
• 10 Day Avg. Volume: 5,784,109
• 30 Day Avg. Volume: 6,700,224
• PEG Ratio: 1.59
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €38.86
• Price Target Upside: 21.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: €36.00 ▲(12.43%Upside)

Deutsche Telekom is characterized by strong financial performance, with robust growth and profitability. Technical indicators suggest cautious optimism, while valuation metrics indicate a fair market price with a good dividend yield. These strengths are balanced against moderate technical signals, resulting in a solid overall score.

Deutsche Telekom Business Overview & Revenue Model

Company Description

Deutsche Telekom AG is a leading global telecommunications company headquartered in Bonn, Germany. It operates in multiple sectors, including fixed-line and mobile communications, broadband internet, and digital services. The company offers a comprehensive range of products and services, including voice, data, and internet services to both residential and business customers. Through its T-Mobile brand, Deutsche Telekom is a major player in the mobile telecommunications market, with operations spanning Europe and the United States.

How the Company Makes Money

Deutsche Telekom generates revenue primarily through its telecommunications services, which include mobile and fixed-line voice services, broadband internet, and digital TV offerings. The company earns money from subscription fees, usage charges, and equipment sales. Its key revenue streams are mobile communications, driven by its T-Mobile units in the United States and Europe, and fixed-line services, which include traditional telephony and broadband internet. Significant partnerships, such as network sharing agreements and strategic collaborations with technology firms, enhance its service offerings and expand its market reach. Additionally, Deutsche Telekom benefits from its investments in infrastructure and technology, which improve operational efficiency and customer experience, further bolstering its financial performance.

Deutsche Telekom Financial Statement Overview

Summary

Deutsche Telekom's financial health is robust, with stable revenue growth, strong profitability, and efficient cash flow management. The balance sheet, while leveraged, is supported by solid equity returns and effective debt management, indicating a strong financial position.

Income Statement

Deutsche Telekom exhibits strong profitability with a consistent gross profit margin around 60% and net profit margin improving to approximately 10%. Revenue growth has been stable, with a 3.4% increase from 2023 to 2024. EBIT and EBITDA margins reflect robust operational efficiency, indicating a well-managed cost structure and effective scaling of operations.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating leverage is effectively managed, though still significant. Return on equity is strong at 17.7%, suggesting effective use of shareholder funds. The equity ratio of 20.8% indicates a solid equity base, though there is room for improvement in reducing liabilities.

Cash Flow

Cash flow management is strong, with operating cash flow consistently covering net income. Free cash flow has grown by 6.5% from 2023 to 2024, supporting business investments and shareholder returns. The free cash flow to net income ratio highlights efficient cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.39B	115.77B	111.97B	114.20B	107.61B	101.00B
Gross Profit	39.80B	28.68B	25.21B	18.88B	16.43B	15.35B
EBITDA	52.56B	50.38B	44.52B	43.08B	38.95B	38.21B
Net Income	12.07B	11.21B	17.79B	8.00B	4.18B	4.16B
Balance Sheet
Total Assets	304.98B	304.93B	313.44B	298.59B	281.63B	264.92B
Cash, Cash Equivalents and Short-Term Investments	21.65B	8.37B	7.24B	5.62B	6.01B	12.94B
Total Debt	148.55B	145.15B	138.75B	147.75B	142.07B	137.26B
Total Liabilities	207.20B	206.29B	222.21B	211.27B	200.16B	192.37B
Stockholders Equity	64.08B	63.30B	56.92B	48.56B	42.68B	35.92B
Cash Flow
Free Cash Flow	22.50B	20.70B	19.43B	11.71B	5.81B	5.05B
Operating Cash Flow	41.43B	39.87B	37.30B	35.82B	32.17B	23.74B
Investing Cash Flow	-20.72B	-18.90B	-22.91B	-22.31B	-27.40B	-22.65B
Financing Cash Flow	-14.53B	-20.28B	-12.83B	-15.44B	-10.78B	7.56B

Deutsche Telekom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTE, the sentiment is Positive. The current price of 32.02 is above the 20-day moving average (MA) of 30.78, above the 50-day MA of 31.84, and above the 200-day MA of 30.68, indicating a bullish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 61.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DTE.

Deutsche Telekom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	73 Outperform	€159.20B	12.42	19.60%	2.81%	4.90%	176.57%
1U1	71 Outperform	€3.28B	18.38	2.93%	0.27%	-1.02%	-41.62%
RRTL	68 Neutral	€5.36B	11.66	7.78%	6.16%	0.32%	-1.50%
UTDI	66 Neutral	€4.76B	―	-1.07%	7.45%	2.37%	-123.95%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
FNTN	61 Neutral	€3.36B	13.74	18.97%	6.97%	-7.04%	18.59%