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Deutsche Telekom (DTEGY)
OTHER OTC:DTEGY
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Deutsche Telekom
(OTC:DTEGY)
Rating:74Outperform
Price Target:
$41.00
▲(14.65% Upside)
Deutsche Telekom (DTEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$182.27B
Dividend Yield2.76%
Average Volume (3M)357.12K
Price to Earnings (P/E)13.4
Beta (1Y)0.28
Revenue Growth4.64%
EPS Growth156.88%
CountryUS
Employees198,194
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.59
Shares Outstanding4,905,190,400
10 Day Avg. Volume292,604
30 Day Avg. Volume357,115
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda6.54
Forecast
1Y Price Target
$41.00Price Target Upside14.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
Deutsche Telekom demonstrated strong financial performance and growth opportunities through successful M&A and network expansion. However, challenges were noted in the German broadband market due to competitive pressures and revenue impacts.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Deutsche Telekom reported a 3.7% organic service revenue growth, 5.2% organic EBITDA growth, 17.8% growth in free cash flow, and 6.4% growth in adjusted earnings per share for the first half of 2025.
Successful M&A Activities
Clearance received for the sale of Romanian Mobile business and closing of MetroNet and UScellular transactions in the U.S., contributing to incremental growth.
Network Expansion
3.4 million additional European homes were passed with FTTH, and T-Mobile launched T-Satellite and T-Fiber in the U.S.
AI and Digital Transformation
Deutsche Telekom made significant progress with AI, including the roll-out of AI-based tools and initiatives, aiming for EUR 800 million in cost savings by 2027.
T-Mobile U.S. Growth
Record-breaking second quarter for postpaid customers net additions, with T-Mobile raising its full-year guidance.
Negative Updates
German Broadband Challenges
Deutsche Telekom faced broadband customer losses in Germany due to competitive pressure from cable operators and alternative networks.
Revenue Decline in Germany
Headline revenues in Germany declined due to one-off revenue impacts and changes in accounting for handset revenues.
Increased Competitive Intensity
The German broadband market experienced heightened competition, leading to slower customer growth and increased churn.
Company Guidance
During Deutsche Telekom's second quarter 2025 conference call, the company provided an optimistic outlook, slightly raising its guidance for the year. Key metrics highlighted included 3.7% organic service revenue growth, 5.2% organic EBITDA growth, a 17.8% increase in free cash flow, and a 6.4% rise in adjusted earnings per share for the first half of 2025. The company projected a group EBITDA of more than EUR 45 billion and free cash flow exceeding EUR 20 billion for the entire year. T-Mobile U.S. also reported strong performance, leading to an upgrade in customer and financial growth guidance. Despite some headwinds in the German broadband market, Deutsche Telekom maintained its focus on value and network leadership, both in Europe and the U.S., continuing its investments and partnerships to enhance fiber and AI capabilities.Deutsche Telekom Financial Statement Overview
Summary
Deutsche Telekom shows strong profitability with solid EBIT and EBITDA margins. However, challenges include declining revenue growth and high leverage. The balance sheet reflects high debt, but strong ROE. Cash flow generation is stable, though recent free cash flow growth is 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 | 171.06B | 115.11B | 114.73B | 113.61B | 108.52B | 100.72B |
| Gross Profit | 125.70B | 70.37B | 49.77B | 63.56B | 61.70B | 58.81B |
| EBITDA | 55.71B | 53.74B | 43.07B | 44.48B | 40.14B | 39.41B |
| Net Income | 12.60B | 11.21B | 17.79B | 8.00B | 6.10B | 6.75B |
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
35.76
Price Trends
36.19
Negative
36.46
Negative
34.60
Positive
Market Momentum
0.09
Positive
45.55
Neutral
40.04
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 35.76 is below the 20-day moving average (MA) of 36.44, below the 50-day MA of 36.19, and above the 200-day MA of 34.60, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 40.04 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $187.12B | 10.31 | 18.26% | 6.26% | 2.05% | 61.39% | |
81 Outperform | $284.46B | 23.84 | 19.74% | 1.45% | 6.27% | 31.78% | |
77 Outperform | $211.58B | 16.87 | 12.12% | 3.77% | 1.46% | 0.88% | |
74 Outperform | $182.27B | 13.36 | 20.81% | 2.76% | 4.64% | 156.88% | |
60 Neutral | $46.60B | 4.15 | -11.40% | 4.15% | 1.85% | -42.71% | |
60 Neutral | $28.58B | 9.21 | -7.17% | 4.19% | 0.89% | -494.16% | |
60 Neutral | $30.27B | ― | -3.55% | 6.65% | -4.73% | -251.31% |
* Communication Services Sector Average
Performance Comparison
DTEGY
Deutsche Telekom
35.95
7.62
26.90%
T
AT&T
29.42
8.93
43.58%
TEF
Telefonica
5.37
0.95
21.49%
VZ
Verizon
43.57
2.53
6.16%
VOD
Vodafone
11.86
2.29
23.93%
TMUS
T Mobile US
242.72
46.97
23.99%
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.