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Deutsche Telekom (DE:DTE)
XETRA:DTE
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Deutsche Telekom (DTE) AI Stock Analysis

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DE:DTE

Deutsche Telekom

(XETRA:DTE)

Rating:73Outperform
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 (DTE) vs. iShares MSCI Germany ETF (EWG)

Deutsche Telekom Business Overview & Revenue Model

Company DescriptionDeutsche 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 MoneyDeutsche 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue117.39B115.77B111.97B114.20B107.61B101.00B
Gross Profit39.80B28.68B25.21B18.88B16.43B15.35B
EBITDA52.56B50.38B44.52B43.08B38.95B38.21B
Net Income12.07B11.21B17.79B8.00B4.18B4.16B
Balance Sheet
Total Assets304.98B304.93B313.44B298.59B281.63B264.92B
Cash, Cash Equivalents and Short-Term Investments21.65B8.37B7.24B5.62B6.01B12.94B
Total Debt148.55B145.15B138.75B147.75B142.07B137.26B
Total Liabilities207.20B206.29B222.21B211.27B200.16B192.37B
Stockholders Equity64.08B63.30B56.92B48.56B42.68B35.92B
Cash Flow
Free Cash Flow22.50B20.70B19.43B11.71B5.81B5.05B
Operating Cash Flow41.43B39.87B37.30B35.82B32.17B23.74B
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-10.78B7.56B

Deutsche Telekom Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.02
Price Trends
50DMA
31.84
Positive
100DMA
32.03
Negative
200DMA
30.68
Positive
Market Momentum
MACD
-0.20
Negative
RSI
62.38
Neutral
STOCH
61.06
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€159.20B12.4219.60%2.81%4.90%176.57%
71
Outperform
€3.28B18.382.93%0.27%-1.02%-41.62%
68
Neutral
€5.36B11.667.78%6.16%0.32%-1.50%
66
Neutral
€4.76B-1.07%7.45%2.37%-123.95%
62
Neutral
$42.18B-1.51-12.07%2.79%2.09%-71.01%
61
Neutral
€3.36B13.7418.97%6.97%-7.04%18.59%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:DTE
Deutsche Telekom
32.02
8.47
35.97%
DE:FNTN
freenet
28.28
3.79
15.47%
DE:RRTL
RTL Group SA
35.25
7.77
28.29%
DE:1U1
1&1 Drillisch AG
18.62
3.33
21.78%
DE:UTDI
United Internet
25.52
6.43
33.68%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025