Deutsche Telekom (DTEGY) AI Stock Analysis

• Market Cap: $164.92B
• Dividend Yield: 2.96%
• Average Volume (3M): 515.36K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.27
• Revenue Growth: 4.64%
• EPS Growth: 156.88%
• Country: US
• Employees: 198,194
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.59
• Shares Outstanding: 4,905,190,400
• 10 Day Avg. Volume: 962,124
• 30 Day Avg. Volume: 515,362
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.21
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 2.90
• Enterprise Value/Ebitda: 6.54
• 1Y Price Target: $41.00
• Price Target Upside: 21.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $41.00 ▲(21.37% Upside)

Deutsche Telekom's overall stock score reflects strong earnings call performance and reasonable valuation. Financial performance is solid but challenged by revenue growth and leverage concerns. Technical analysis is mixed, with some bearish indicators. The company's strategic initiatives and optimistic guidance contribute positively to the score.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 33.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 33.78 is below the 20-day moving average (MA) of 34.98, below the 50-day MA of 35.71, and below the 200-day MA of 34.86, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 18.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTEGY.

Deutsche Telekom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	83 Outperform	$183.87B	10.13	17.65%	6.21%	2.05%	61.39%
T	77 Outperform	$202.43B	16.14	12.12%	3.92%	1.46%	0.88%
DTEGY	74 Outperform	$164.92B	12.13	20.81%	2.96%	4.64%	156.88%
TMUS	73 Outperform	$267.25B	22.39	19.99%	1.48%	6.27%	31.78%
VOD	60 Neutral	$27.64B	-6.40	-7.90%	4.33%	0.89%	-494.16%
TEF	52 Neutral	$28.89B	-11.41	-13.79%	7.07%	-4.73%	-251.31%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%