Deutsche Telekom (DTEGY)
OTHER OTC:DTEGY
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Deutsche Telekom
(OTC:DTEGY)
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Rating:74Outperform
Price Target:
$43.00
â–²(17.23% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by strong profitability and improving cash flow, which help offset elevated leverage risk. Technicals add support with a clear uptrend and positive momentum. The earnings call was a net positive due to strong 2026 guidance and operational progress, while valuation is fair rather than cheap, limiting upside from multiple expansion.
Positive Factors
Free Cash Flow Strength
Sustained, growing free cash flow provides durable funding for heavy capex (fiber, 5G), dividend increases and debt service. Strong cash conversion supports strategic investments and cushions execution risks, enabling multi-year infrastructure rollouts without eroding liquidity or core operations.
Negative Factors
High Leverage
Elevated debt materially raises refinancing and interest-rate sensitivity, constraining financial flexibility for M&A, further buybacks, or accelerated returns. Even with strong cash flow, high leverage amplifies downside in adverse macro or FX scenarios and limits optionality over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, growing free cash flow provides durable funding for heavy capex (fiber, 5G), dividend increases and debt service. Strong cash conversion supports strategic investments and cushions execution risks, enabling multi-year infrastructure rollouts without eroding liquidity or core operations.
Read all positive factors
Deutsche Telekom (DTEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$181.03B
Dividend Yield3.06%
Average Volume (3M)431.09K
Price to Earnings (P/E)14.6
Beta (1Y)0.23
Revenue Growth5.54%
EPS Growth104.78%
CountryUS
Employees198,194
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.52
Shares Outstanding4,905,190,400
10 Day Avg. Volume420,978
30 Day Avg. Volume431,091
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)2.17
Price to Sales (P/S)1.18
P/FCF Ratio4.97
Enterprise Value/Market Cap1.59
Enterprise Value/Revenue2.40
Enterprise Value/Gross Profit5.54
Enterprise Value/Ebitda6.08
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)2.55
Revenue Forecast (FY)$142.17B
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 serv...
How the Company Makes Money
Deutsche Telekom generates revenue through several key streams, primarily from mobile and fixed-line telecommunications services. The company's main revenue sources include subscription fees from mobile and broadband services, as well as revenue f...
Deutsche Telekom Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: group-wide organic revenue, adjusted EBITDA and free cash flow all improved in 2025; the company announced a record dividend, accelerated fiber rollout, strong U.S. performance, continued AI and data investments (including a sovereign AI factory), and an upgraded 2026 EBITDA target. However, several notable headwinds persist — broadband volume losses in Germany, FX-related drags from a weaker U.S. dollar, regulatory uncertainty across Europe, energy cost pressures, and operational frictions in fiber uptake and delivery — which temper near-term visibility. On balance the highlights (broad growth, investment, commercial momentum, and strategic initiatives) outweigh the lowlights, but management acknowledges pockets of execution and macro/regulatory challenges that keep some targets exposed to risk.Positive Updates
Record Dividend Proposal
Proposed dividend of EUR 1.00 per share — the highest in Deutsche Telekom's history — signaling strong cash generation and confidence in 2025 results.
Negative Updates
Broadband Volume Losses and Weaker Fixed Service Revenues
Germany experienced broadband customer losses in 2025 that depressed fixed service revenues; retail broadband revenue growth slowed to 1.6% in the last quarter and overall fixed service trends remain weaker-than-expected, weighing on segment results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Dividend Proposal
Proposed dividend of EUR 1.00 per share — the highest in Deutsche Telekom's history — signaling strong cash generation and confidence in 2025 results.
Read all positive updates
Company Guidance
Management guided for 2026 that adjusted EBITDA should grow ~6% to €47.4bn (guidance set at constant FX, USD/EUR 1.13), free cash flow should rise ~3% to €19.8bn and adjusted EPS should increase ~10% to ~€2.20; this follows a strong 2025 where group organic net revenue was up 4.2% to €119.1bn, service revenue +3.8% to €99.4bn, adjusted EBITDA +4.7% to €44.2bn, free cash flow +2% to €19.5bn and adjusted net profit +3.7%, with nearly €17bn invested in 2025 (Germany €5.9bn). Key operational metrics cited: Germany added 2.5m new fiber lines in 2025 (12.6m homes passed, ~600k net fiber customers, Q4 fiber adds 164k) and is on track for ~17.5m homes passed by 2027 and a 1m/year fiber run‑rate target; Europe added 1.1m FTTH homes (11.3m homes, 36% utilization, Q4 organic revenue +3.5%, FY service revenue +3.9% and EBITDA AL ~€4.8bn outlook), T‑Systems is scaling AI/cloud (targeting T‑Cloud public >€200m, selected verticals aiming for strong y/y growth), and the U.S. business reported service revenue +10.5% to $18.7bn, adjusted core EBITDA +6.8% to $8.4bn, with 2.4m Q4 postpaid net adds (churn ~1.02%).Deutsche Telekom Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 114.38B | 118.43B | 114.73B | 117.07B | 110.47B |
| Gross Profit | 28.14B | 52.95B | 49.77B | 45.95B | 43.28B |
| EBITDA | 48.75B | 40.62B | 38.22B | 34.23B | 34.41B |
| Net Income | 9.23B | 11.21B | 17.79B | 8.00B | 4.18B |
Balance Sheet | |||||
| Total Assets | 310.70B | 304.93B | 290.31B | 298.59B | 281.63B |
| Cash, Cash Equivalents and Short-Term Investments | 7.82B | 8.37B | 7.28B | 5.62B | 6.01B |
| Total Debt | 141.12B | 145.15B | 138.75B | 147.75B | 142.07B |
| Total Liabilities | 218.50B | 206.29B | 199.07B | 211.27B | 200.16B |
| Stockholders Equity | 62.14B | 63.30B | 56.92B | 48.56B | 42.68B |
Cash Flow | |||||
| Free Cash Flow | 27.20B | 20.70B | 19.43B | 11.71B | 5.81B |
| Operating Cash Flow | 39.02B | 39.87B | 37.30B | 35.82B | 32.17B |
| Investing Cash Flow | -30.75B | -18.90B | -10.21B | -22.31B | -27.40B |
| Financing Cash Flow | -7.75B | -20.28B | -25.53B | -15.44B | -10.78B |
Deutsche Telekom Technical Analysis
Neutral
36.68
Price Trends
36.49
Positive
34.19
Positive
34.74
Positive
Market Momentum
-0.10
Positive
46.54
Neutral
22.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTEGY, the sentiment is Neutral. The current price of 36.68 is below the 20-day moving average (MA) of 37.56, above the 50-day MA of 36.49, and above the 200-day MA of 34.74, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 22.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $181.03B | 14.63 | 15.62% | 3.06% | 5.54% | 104.78% | |
74 Outperform | $235.73B | 20.84 | 18.18% | 1.75% | 7.30% | 17.67% | |
72 Outperform | $212.15B | 10.02 | 16.62% | 6.60% | 2.42% | 102.17% | |
67 Neutral | $201.48B | 8.14 | 20.35% | 4.56% | 1.98% | 150.68% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $34.34B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% |
* Communication Services Sector Average
DTEGY
Deutsche Telekom
36.84
0.46
1.26%
T
AT&T
28.78
1.49
5.47%
VZ
Verizon
50.30
7.83
18.43%
VOD
Vodafone
14.70
5.83
65.78%
TMUS
T Mobile US
213.94
-50.09
-18.97%
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.