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Deutsche Telekom (DTEGY)
:DTEGY
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Deutsche Telekom
(OTC:DTEGY)
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Rating:70Outperform
Price Target:
$35.00
▲(9.20% Upside)
Deutsche Telekom's overall score is driven by strong earnings call results and attractive valuation, offset by technical analysis indicating bearish trends. Financial performance is solid, but challenges in revenue growth and high leverage remain concerns. The company's strategic initiatives and shareholder returns are positive factors.
Positive Factors
AI Initiatives
The partnership with NVIDIA to develop AI infrastructure enhances Deutsche Telekom's technological capabilities, positioning it as a leader in AI-driven solutions, which can drive long-term growth and innovation.
Fiber Expansion
The expansion of fiber infrastructure strengthens Deutsche Telekom's market position in Europe, providing a competitive edge in high-speed internet services and supporting future revenue growth.
T-Mobile US Performance
Strong performance by T-Mobile US contributes significantly to Deutsche Telekom's overall growth, reinforcing its competitive position in the lucrative U.S. market and supporting sustained financial health.
Negative Factors
High Debt Levels
High leverage poses a risk to financial stability, potentially limiting Deutsche Telekom's ability to invest in growth initiatives and manage economic downturns effectively.
Challenges in German Market
Economic challenges and competitive pressures in Germany could hinder Deutsche Telekom's domestic growth, impacting overall revenue and profitability.
Negative Free Cash Flow Growth
Negative free cash flow growth may constrain Deutsche Telekom's ability to fund new projects or return capital to shareholders, affecting long-term financial flexibility and growth potential.
Deutsche Telekom (DTEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.97B
Dividend Yield3.12%
Average Volume (3M)507.68K
Price to Earnings (P/E)11.8
Beta (1Y)0.16
Revenue Growth5.54%
EPS Growth104.78%
CountryUS
Employees198,194
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.64
Shares Outstanding4,905,190,400
10 Day Avg. Volume420,917
30 Day Avg. Volume507,675
Financial Highlights & Ratios
PEG Ratio-0.35
Price to Book (P/B)2.25
Price to Sales (P/S)1.20
P/FCF Ratio6.87
Enterprise Value/Market Cap2.29
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit6.66
Enterprise Value/Ebitda8.70
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Deutsche Telekom Business Overview & Revenue Model
Company DescriptionDeutsche Telekom AG (DTEGY) is a leading global telecommunications and information technology company headquartered in Bonn, Germany. It operates in various sectors, including mobile and fixed-line telecommunications, broadband services, and digital services. The company is known for its core products, which include mobile network services, internet services, and various IT solutions for both consumers and businesses. Deutsche Telekom serves millions of customers worldwide and has a significant presence in Europe and the United States through its subsidiary, T-Mobile US.
How the Company Makes MoneyDeutsche Telekom generates revenue through multiple key streams, primarily from its telecommunications services. The largest source of income comes from mobile and fixed-line voice services, which include subscription fees and usage charges from individual and business customers. Additionally, the company earns significant revenue from broadband internet services and television offerings. Another important revenue stream is the sale of IT and cloud services, catering to enterprise clients. Deutsche Telekom has formed strategic partnerships with various technology firms and content providers, enhancing its service offerings and driving additional revenue. The company's subsidiary, T-Mobile US, contributes a substantial portion of its earnings through a growing customer base and innovative pricing strategies in the competitive U.S. market. Overall, Deutsche Telekom's diversified portfolio and strong market position enable it to remain a significant player in the global telecommunications landscape.
Deutsche Telekom Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with significant achievements in growth metrics, strategic initiatives, and shareholder returns, despite some challenges in the German market.Q3-2025 Updates
Positive Updates
Consistent Growth Metrics
Deutsche Telekom delivered 3.7% organic service revenue growth, 4.4% organic EBITDA growth, 6.8% growth in free cash flow, and 9.5% growth in adjusted earnings per share for the first 9 months of 2025.
T-Mobile US Performance
T-Mobile US reported impressive Q3 results with a 9.1% service revenue growth and 5.6% core EBITDA growth. Postpaid net additions were 2.3 million, exceeding consensus expectations.
Dividend and Share Buyback
The Board of Management proposed an 11% dividend increase to EUR 1 per share for 2025 and plans to buy back EUR 2 billion worth of shares in 2026, amounting to a shareholder return of nearly EUR 7 billion.
Fiber Expansion in Europe
Deutsche Telekom passed 3.6 million additional European homes with FTTH in the last 12 months, reaching nearly 23 million homes.
Moody's Credit Rating Upgrade
Moody's upgraded Deutsche Telekom's credit rating to A3, recognizing the company's disciplined financial execution.
AI Initiatives and Partnerships
Deutsche Telekom launched Europe's first industrial AI cloud with NVIDIA, with a combined investment of EUR 1 billion, marking significant progress in AI-driven digitization.
T-Systems Growth
T-Systems reported 11.7% year-to-date EBITDA growth, benefiting from AI-driven digital solutions and sovereign cloud services.
Negative Updates
Challenges in German Market
Germany faced a weaker quarter with a headline growth decline of 1.8%, impacted by prior year comps and cost phasing including a double whammy from wage increases.
Broadband Net Additions in Germany
Deutsche Telekom suffered another small customer loss in Germany's broadband market, partly due to competitive pressures and weak German economy.
Company Guidance
During Deutsche Telekom's Third Quarter 2025 Conference Call, the company announced a 3.7% growth in organic service revenue and a 4.4% increase in organic EBITDA for the first nine months of the year. Free cash flow grew by 6.8%, and adjusted earnings per share rose by 9.5%. The company raised its guidance to reflect T-Mobile's improved performance, maintaining its full-year DT ex U.S. guidance. Deutsche Telekom has made strategic progress in Germany with a record fiber build and new AI-driven initiatives across Europe. T-Systems led with an 11.7% year-to-date EBITDA growth, while DT ex U.S. reported a 2.9% increase. The company announced plans to increase its dividend by 11% to EUR 1 per share for 2025 and buy back EUR 2 billion worth of shares in 2026, aiming for a shareholder return of nearly EUR 7 billion. Additionally, Deutsche Telekom passed 3.6 million additional European homes with FTTH in the past 12 months and now has 934,000 fiber customers in the U.S. The company also highlighted its partnership with NVIDIA to launch Europe's first industrial AI cloud and its efforts to improve efficiency through AI initiatives.Deutsche Telekom Financial Statement Overview
Summary
Deutsche Telekom shows strong profitability with solid EBIT and EBITDA margins, but faces challenges in revenue growth and high leverage. The balance sheet reflects high debt levels, yet the company effectively generates returns on equity. Cash flow generation is stable, though recent free cash flow growth has been negative.Income Statement
Deutsche Telekom's income statement shows a strong EBIT and EBITDA margin, indicating efficient operations. However, the recent TTM data reveals a decline in revenue growth, which is a concern. The gross profit margin has decreased over time, but the net profit margin remains healthy. Overall, the company demonstrates solid profitability with some challenges in revenue growth.75
Positive
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, which poses a risk in terms of financial leverage. However, the return on equity is robust, suggesting effective use of equity to generate profits. The equity ratio is moderate, indicating a balanced asset structure. While the company is leveraging debt, it maintains a strong ROE, which is a positive sign.68
Positive
Cash Flow
The cash flow statement shows a stable operating cash flow to net income ratio, indicating good cash generation relative to profits. However, the free cash flow growth has been negative in the TTM period, which could impact future investments. The free cash flow to net income ratio is healthy, suggesting adequate cash flow generation to support operations.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 120.54B | 118.43B | 114.73B | 117.07B | 110.47B | 102.72B |
| Gross Profit | 53.88B | 52.95B | 49.77B | 45.95B | 43.28B | 40.72B |
| EBITDA | 41.28B | 40.62B | 38.22B | 34.23B | 34.41B | 32.94B |
| Net Income | 12.60B | 11.21B | 17.79B | 8.00B | 4.18B | 4.16B |
Balance Sheet | ||||||
| Total Assets | 281.51B | 304.93B | 290.31B | 298.59B | 281.63B | 264.92B |
| Cash, Cash Equivalents and Short-Term Investments | 15.17B | 8.37B | 7.28B | 5.62B | 6.01B | 12.94B |
| Total Debt | 136.96B | 145.15B | 138.75B | 147.75B | 142.07B | 137.26B |
| Total Liabilities | 191.78B | 206.29B | 199.07B | 211.27B | 200.16B | 192.37B |
| 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 | -10.21B | -22.31B | -27.40B | -22.65B |
| Financing Cash Flow | -18.93B | -20.28B | -25.53B | -15.44B | -10.78B | 7.56B |
Deutsche Telekom Technical Analysis
Negative
32.05
Price Trends
32.81
Negative
34.33
Negative
35.26
Negative
Market Momentum
-0.22
Negative
46.51
Neutral
78.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTEGY, the sentiment is Negative. The current price of 32.05 is above the 20-day moving average (MA) of 31.50, below the 50-day MA of 32.81, and below the 200-day MA of 35.26, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 78.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTEGY.
Deutsche Telekom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $235.03B | 20.21 | 19.03% | 1.76% | 7.30% | 17.67% | |
72 Outperform | $171.23B | 8.66 | 19.70% | 6.60% | 2.42% | 102.17% | |
72 Outperform | $180.92B | 8.29 | 20.88% | 4.37% | 1.98% | 150.68% | |
70 Outperform | $156.97B | 11.82 | 19.34% | 3.12% | 5.54% | 104.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $29.51B | ― | -7.08% | 3.89% | 19.67% | -278.51% | |
45 Neutral | $23.86B | ― | -0.70% | 7.83% | -5.49% | -75.51% |
* Communication Services Sector Average
DTEGY
Deutsche Telekom
31.92
0.49
1.56%
T
AT&T
25.39
2.58
11.31%
TEF
Telefonica
4.19
-0.13
-3.01%
VZ
Verizon
41.26
1.45
3.64%
VOD
Vodafone
12.64
3.97
45.79%
TMUS
T Mobile US
208.01
-32.18
-13.40%
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.