Deutsche Telekom (DTE) AI Stock Analysis

• Market Cap: €148.92B
• Dividend Yield: 3.01%
• Average Volume (3M): 4.82M
• 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: 4,905,190,400
• 10 Day Avg. Volume: 4,364,394
• 30 Day Avg. Volume: 4,818,248
• PEG Ratio: -0.35
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 6.89
• 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: €39.31
• Price Target Upside: 31.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 68 Neutral
• Price Target: €33.00 ▲(10.18% Upside)

Deutsche Telekom's strong financial performance and reasonable valuation are key strengths, but high leverage and bearish technical indicators pose risks. The stock's valuation and dividend yield offer some appeal, but caution is advised due to the technical downtrend and leverage concerns.

Deutsche Telekom Business Overview & Revenue Model

Company Description

Deutsche Telekom AG (DTE) is a leading global telecommunications company headquartered in Bonn, Germany. It operates in various sectors, including mobile and fixed-line telecommunications, broadband, and digital services. The company offers a wide range of core products and services, including mobile and landline voice services, internet access, television services, and IT solutions, primarily through its subsidiary brands such as T-Mobile and Telekom Deutschland.

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 shows strong revenue growth and profitability with efficient operations. However, the high debt-to-equity ratio indicates significant leverage, posing potential financial risks. Cash flow generation is stable, but the decline in free cash flow growth requires attention.

Income Statement

Deutsche Telekom shows strong revenue growth with a TTM growth rate of 16.2%, indicating robust business expansion. The company maintains healthy profitability margins, with a gross profit margin of 43.18% and a net profit margin of 10.71% in the TTM. EBIT and EBITDA margins are also solid at 24.88% and 45.05%, respectively. These metrics reflect strong operational efficiency and profitability. However, the decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.32, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 20.57%, showcasing effective use of equity to generate profits. The equity ratio stands at 20.92%, reflecting a moderate level of equity financing relative to total assets. While the company is profitable, the high leverage warrants caution.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 6.12% in the TTM, which could impact future investments and debt servicing. The operating cash flow to net income ratio is 1.11, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is 0.52, suggesting a reasonable conversion of earnings into free cash flow. Despite the decline in free cash flow growth, cash flow generation remains stable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	171.06B	115.11B	111.97B	114.20B	107.61B	101.00B
Gross Profit	125.70B	70.37B	25.21B	18.88B	16.43B	15.35B
EBITDA	55.71B	53.74B	44.52B	43.08B	38.95B	38.21B
Net Income	12.60B	11.21B	17.79B	8.00B	4.18B	4.16B
Balance Sheet
Total Assets	281.51B	328.29B	313.44B	321.03B	299.47B	282.31B
Cash, Cash Equivalents and Short-Term Investments	10.44B	8.48B	7.28B	5.77B	7.62B	12.94B
Total Debt	137.83B	146.46B	140.82B	147.16B	142.07B	137.26B
Total Liabilities	191.78B	229.65B	222.21B	233.71B	218.00B	209.76B
Stockholders Equity	58.91B	63.30B	56.92B	48.56B	42.68B	35.92B
Cash Flow
Free Cash Flow	21.12B	20.70B	19.43B	11.71B	5.81B	5.05B
Operating Cash Flow	40.92B	39.87B	37.30B	35.82B	32.17B	23.74B
Investing Cash Flow	-19.20B	-18.90B	-22.91B	-22.31B	-27.40B	-22.65B
Financing Cash Flow	-18.93B	-20.28B	-12.83B	-15.44B	-10.78B	7.56B

Deutsche Telekom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTE, the sentiment is Negative. The current price of 29.95 is below the 20-day moving average (MA) of 31.21, below the 50-day MA of 30.98, and below the 200-day MA of 31.30, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:DTE.

Deutsche Telekom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTE	68 Neutral	€148.92B	11.86	21.55%	3.01%	4.06%	156.80%
Sector *	56 Neutral	$13.39B	17.94	10.03%	0.93%	7.13%	-12.93%
0E6Y	―	€3.55B	23.41	2.48%	―	―	―
0MV2	―	€3.32B	12.71	18.85%	―	―	―
0MNC	―	€5.57B	15.47	6.17%	―	―	―
0R50	―	€120.41M	―	-1682.75%	―	―	―
0GE4	―	€5.02B	37.50	2.66%	―	―	―