Deutsche Telekom (DTE) AI Stock Analysis

• Market Cap: €152.39B
• Dividend Yield: 2.92%
• Average Volume (3M): 5.84M
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.42
• Revenue Growth: 4.06%
• EPS Growth: 156.80%
• Country: DE
• Employees: 198,194
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.51
• Shares Outstanding: 4,986,458,500
• 10 Day Avg. Volume: 6,368,625
• 30 Day Avg. Volume: 5,844,292
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €38.88
• Price Target Upside: 26.85% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 75 Outperform
• Price Target: €35.00 ▲(14.19% Upside)

Deutsche Telekom's overall stock score is driven by strong financial performance and a fair valuation. The technical analysis suggests a neutral market sentiment, neither strongly bullish nor bearish. The absence of earnings call data and corporate events does not impact the score.

Deutsche Telekom Business Overview & Revenue Model

Company Description

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. 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 242 million mobile customers and 22 million broadband customers, as well as 27 million fixed-network lines. Deutsche Telekom AG has a collaboration with VMware, Inc. on cloud-based open and intelligent virtual RAN platform to bring agility to radio access networks for existing LTE and future 5G networks; and partnership with Microsoft to deliver high-performance cloud computing experiences. The company was founded in 1995 and is headquartered in Bonn, Germany.

How the Company Makes Money

Deutsche Telekom generates revenue through multiple key streams. Its primary source of income comes from the provision of mobile services, including voice and data plans to both individual consumers and businesses. Additionally, the company earns substantial revenue from fixed-line services, such as broadband internet and television subscriptions. The sale of equipment, such as smartphones and routers, also contributes to its revenue. Furthermore, Deutsche Telekom has significant partnerships and joint ventures, particularly in the U.S. with T-Mobile USA, which is a critical driver of its earnings. The company is also focusing on expanding its digital services, including cloud computing and IoT (Internet of Things) solutions, which are expected to enhance its revenue potential in the coming years.

Deutsche Telekom Financial Statement Overview

Summary

Deutsche Telekom's financial performance is strong, with robust revenue growth and improved profit margins. The balance sheet is stable, though slightly reliant on debt, and cash flows are robust, indicating solid financial health.

Income Statement

Deutsche Telekom has shown robust revenue growth with a strong TTM performance, increasing from previous years. The gross profit margin improved significantly, reflecting efficient cost management. The net profit margin also saw an upward trend, indicating improved profitability. EBIT and EBITDA margins are strong, showcasing operational efficiency.

Balance Sheet

The balance sheet indicates a stable financial position with a moderate debt-to-equity ratio, although slightly high for the industry. Return on equity has improved, reflecting better utilization of equity. The equity ratio is solid, suggesting a healthy balance between debt and equity.

Cash Flow

The cash flow statement reflects a positive trajectory in free cash flow, with a significant growth rate. Operating cash flow to net income ratio is strong, indicating efficient cash generation relative to profits. Free cash flow to net income ratio further supports the company's capacity to generate cash.

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: Neutral
• Last Price: 30.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 30.65 is below the 20-day moving average (MA) of 30.87, below the 50-day MA of 31.02, and below the 200-day MA of 30.97, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 48.07 is Neutral, neither overbought nor oversold. The STOCH value of 45.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:DTE.

Deutsche Telekom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	75 Outperform	€152.39B	11.94	21.55%	2.92%	4.06%	156.80%
FNTN	71 Outperform	€3.36B	12.86	18.85%	6.99%	-2.44%	17.20%
1U1	71 Outperform	€3.30B	21.86	2.48%	0.27%	-1.57%	-44.37%
RRTL	68 Neutral	€5.49B	15.28	6.17%	6.03%	2.77%	-31.49%
UTDI	66 Neutral	€4.70B	35.18	2.66%	7.53%	2.55%	382.67%
Sector *	56 Neutral	HK$27.52B	-6.28	7.26%	6.38%	-0.39%	-438.43%