Deutsche Telekom (DTE) AI Stock Analysis

• Market Cap: €154.63B
• Dividend Yield: 2.9%
• Average Volume (3M): 6.72M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.51
• Revenue Growth: 4.90%
• EPS Growth: 176.57%
• Country: DE
• Employees: 198,194
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): 0.50
• Shares Outstanding: 4,986,458,500
• 10 Day Avg. Volume: 7,081,113
• 30 Day Avg. Volume: 6,717,893
• PEG Ratio: 0.16
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.37
• 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: €38.82
• Price Target Upside: 25.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 66 Neutral
• Price Target: €34.00 ▲(9.61%Upside)

Deutsche Telekom's stock score is primarily driven by its strong financial performance, marked by robust profitability and cash flow management. However, technical analysis indicates bearish momentum, which tempers the overall outlook. Valuation metrics suggest the stock is fairly valued, with a reasonable P/E ratio and a moderate dividend yield contributing positively. The absence of significant earnings call insights or corporate events maintains focus on financial and technical factors.

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 primarily through its telecommunications services, which include mobile and fixed-line services. The company earns significant income from its mobile communications segment, offering voice, data, and value-added services to consumers and businesses. Broadband internet and fixed-line telephony services also contribute to its earnings. Additionally, Deutsche Telekom benefits from its IT services and solutions, providing IT infrastructure and managed services to businesses. The company has strategic partnerships and investments, such as its ownership stake in T-Mobile US, which significantly enhances its revenue base. Deutsche Telekom's earnings are further supported by its focus on expanding digital services and solutions, increasing its presence in the growing digital market.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.11B	111.31B	113.61B	108.52B	100.72B
Gross Profit	70.37B	66.82B	63.56B	61.70B	58.81B
EBITDA	50.38B	44.52B	43.08B	38.95B	38.21B
Net Income	11.21B	17.79B	8.00B	6.10B	6.75B
Balance Sheet
Total Assets	304.93B	313.44B	298.59B	281.63B	264.92B
Cash, Cash Equivalents and Short-Term Investments	8.37B	7.24B	5.62B	6.01B	12.94B
Total Debt	145.15B	138.75B	147.75B	142.07B	137.26B
Total Liabilities	206.29B	222.21B	211.27B	200.16B	192.37B
Stockholders Equity	63.30B	56.92B	48.56B	42.68B	35.92B
Cash Flow
Free Cash Flow	20.70B	19.43B	11.71B	5.81B	5.05B
Operating Cash Flow	39.87B	37.30B	35.82B	32.17B	23.74B
Investing Cash Flow	-18.90B	-22.91B	-22.31B	-27.40B	-22.65B
Financing Cash Flow	-20.28B	-12.83B	-15.44B	-10.78B	7.56B

Deutsche Telekom Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.02
• 50DMA: Negative
• 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 Negative. The current price of 31.02 is below the 20-day moving average (MA) of 31.34, below the 50-day MA of 32.17, and above the 200-day MA of 30.30, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 50.13 is Neutral, 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	66 Neutral	€154.63B	12.68	19.60%	2.90%	4.90%	176.57%
Sector *	61 Neutral	$41.01B	-0.64	-14.21%	3.80%	2.39%	-73.52%
0E6Y		€3.28B	18.46	2.93%	0.27%	―	―
0MV2		€3.28B	13.67	18.97%	7.13%	―	―
0MNC		€5.68B	12.35	7.78%	5.82%	―	―
0R50		€114.94M	―	-291.14%	―	―	―
0GE4		€4.46B	―	-1.07%	7.95%	―	―