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Deutsche Telekom (DTEGY)
OTHER OTC:DTEGY
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Deutsche Telekom
(OTC:DTEGY)
78Outperform
Deutsche Telekom (DTEGY) vs. S&P 500 (SPY)
Market Cap
$179.57B
Dividend Yield2.19%
Average Volume (3M)1.81M
Price to Earnings (P/E)14.7
Beta (1Y)0.42
Revenue Growth3.44%
EPS Growth-36.24%
CountryUS
Employees198,194
SectorCommunication Services
Sector Strength80
IndustryTelecommunications Services
Share Statistics
EPS (TTM)2.45
Shares Outstanding4,986,458,500
10 Day Avg. Volume577,463
30 Day Avg. Volume1,810,515
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.43
Price to Cash Flow (P/CF)4.80
P/FCF Ratio12.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.71Price Target Upside26.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Deutsche Telekom Business Overview & Revenue Model
Company DescriptionDeutsche 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 MoneyDeutsche Telekom generates revenue through a diversified model, primarily driven by its telecommunications services. The company earns substantial income from providing mobile communications and data services, particularly through its T-Mobile US segment, which is a significant contributor to its revenue. Fixed-network services, including broadband internet and telephony, also play a crucial role in the company's earnings, especially in Germany and other European markets. Additionally, Deutsche Telekom's Systems Solutions segment offers IT and telecommunications solutions to business customers, further diversifying its revenue streams. The company benefits from strategic partnerships and collaborations, enabling it to expand its market presence and leverage new technologies, which contribute to its overall revenue growth.
Deutsche Telekom Financial Statement Overview
Summary
Deutsche Telekom demonstrates strong financial health with consistent revenue growth, improving profitability, and efficient cash flow management. The company balances leverage and equity effectively, maintaining a robust financial position in the competitive telecommunications sector. Potential risks include high debt levels, but current strategies appear to mitigate these concerns, supporting continued growth and stability.Income Statement
Deutsche Telekom shows strong financial performance with steady revenue growth and improving margins. The Gross Profit Margin increased to 61.1% in 2024, reflecting efficient cost management. The Net Profit Margin was 9.7% in 2024, showing profitability despite industry competition. Revenue grew by 0.3% from 2023 to 2024, indicating stable growth. EBIT and EBITDA margins improved, reaching 22.8% and 46.7% respectively, highlighting operational efficiency.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 2.29, suggesting moderate leverage typical in telecommunications. The Return on Equity (ROE) is 17.7%, indicating effective use of equity capital. The Equity Ratio stands at 20.8%, reflecting a balanced capital structure, although an increase in equity would mitigate risk.78
Positive
Cash Flow
Deutsche Telekom's cash flow is robust, with Free Cash Flow growing by 6.5% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 3.56, showing strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio of 1.85 indicates efficient conversion of earnings into cash, supporting ongoing investments and debt management.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 111.73B | 115.11B | 114.73B | 113.61B | 108.52B | 100.72B | Gross Profit |
| 62.52B | 70.37B | 49.77B | 63.56B | 61.70B | 58.81B | EBIT |
| 15.68B | 26.28B | 20.80B | 15.41B | 13.06B | 12.80B | EBITDA |
| 43.31B | 53.74B | 43.07B | 44.48B | 40.14B | 39.41B | Net Income Common Stockholders |
| 6.77B | 11.21B | 17.79B | 8.00B | 6.10B | 6.75B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 8.37B | 8.37B | 7.28B | 5.62B | 6.01B | 12.94B | Total Assets |
| 304.93B | 304.93B | 290.31B | 298.59B | 281.63B | 264.92B | Total Debt |
| 145.15B | 145.15B | 138.75B | 147.75B | 142.07B | 137.26B | Net Debt |
| 136.78B | 136.78B | 131.52B | 142.14B | 136.06B | 124.32B | Total Liabilities |
| 206.29B | 206.29B | 199.07B | 211.27B | 200.16B | 192.37B | Stockholders Equity |
| 63.30B | 63.30B | 56.92B | 48.56B | 42.68B | 35.92B |
| Cash Flow | Free Cash Flow | ||||
| 11.73B | 20.70B | 19.43B | 11.71B | 5.81B | 5.05B | Operating Cash Flow |
| 33.76B | 39.87B | 37.30B | 35.82B | 32.17B | 23.74B | Investing Cash Flow |
| -21.24B | -18.90B | -10.21B | -22.31B | -27.40B | -22.65B | Financing Cash Flow |
| -16.76B | -20.28B | -25.53B | -15.44B | -10.78B | 7.56B |
Deutsche Telekom Technical Analysis
Positive
36.05
Price Trends
34.84
Positive
32.76
Positive
30.14
Positive
Market Momentum
0.30
Positive
50.86
Neutral
16.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTEGY, the sentiment is Positive. The current price of 36.05 is below the 20-day moving average (MA) of 36.52, above the 50-day MA of 34.84, and above the 200-day MA of 30.14, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTEGY.
Deutsche Telekom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $179.57B | 14.69 | 18.86% | 2.19% | 3.44% | -36.24% | |
77 Outperform | $141.30B | 8.92 | 19.24% | 3.36% | 1.78% | 11.62% | |
76 Outperform | $198.48B | 18.31 | 10.54% | 4.06% | -0.08% | -24.48% | |
76 Outperform | $299.72B | 26.77 | 17.93% | 1.18% | 3.62% | 38.24% | |
74 Outperform | $59.42B | 10.66 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $183.37B | 10.51 | 18.27% | 6.17% | 0.61% | 50.39% | |
59 Neutral | $30.02B | 0.85 | -18.80% | 4.01% | 2.14% | -50.70% |
* Communication Services Sector Average
Performance Comparison
DTEGY
Deutsche Telekom
36.05
12.66
54.13%
T
AT&T
27.65
11.02
66.27%
CHTR
Charter Communications
384.77
94.14
32.39%
CMCSA
Comcast
37.37
-4.64
-11.04%
VZ
Verizon
44.18
4.87
12.39%
TMUS
T Mobile US
262.51
101.56
63.10%
Deutsche Telekom Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -2.20% | Next Earnings Date: May 15, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance for Deutsche Telekom with record financial metrics and successful fiber expansion. However, challenges in the German broadband market and aggressive competition in the mobile segment were noted. The sentiment towards future growth remains optimistic with guidance aligned to previous targets.Highlights
Record Financial Performance
Deutsche Telekom reported the highest EBITDA, free cash flow, and adjusted earnings in the company's history for FY2024, with organic service revenue growth of 3.7%, EBITDA growth of 6%, and free cash flow growth of 19%.
T-Mobile US Performance
T-Mobile US reported strong results with a 10.1% core EBITDA growth in Q4 and a guidance of 5.5 to 6 million postpaid net additions for 2025, marking the highest ever guidance given by the US team.
Fiber Expansion
In the last 12 months, Deutsche Telekom passed 3.3 million additional European homes with fiber, now reaching over 20 million homes in its European footprint.
Leadership Stability
Tim Hottges extended his contract until 2028, providing stability, and Srini Gopalan was appointed as COO of T-Mobile US, bringing expertise in fiber and international experience.
Total Shareholder Return
Deutsche Telekom's total shareholder return was 38% last year, and shares recently reached a new 24-year high.
Lowlights
German Broadband Market Challenges
Deutsche Telekom faced challenges in the German broadband market with lower than expected broadband net adds, attributed to slower market growth and increased competition from Vodafone's retention efforts.
Mobile Competition in Germany
The competitive environment in the German mobile market was described as quite aggressive with increased promotional activities from competitors.
IT Revenue Delay
There was a delay in expected IT revenues from the public sector in Germany, which impacted Q4 service revenue growth.
Company Guidance
During Deutsche Telekom's Fourth Quarter 2024 conference call, CEO Tim Hottges highlighted their record performance, marking the highest EBITDA, free cash flow, and adjusted earnings in the company's history. The company achieved a 3.7% organic service revenue growth, a 6% organic EBITDA growth, and a 19% increase in both free cash flow and adjusted earnings per share. Hottges emphasized their strategic focus on fiber, mobile technology leadership, customer service, and artificial intelligence. The U.S. market contributed significantly with T-Mobile US regaining a 51.5% stake, while Deutsche Telekom made over EUR 10 billion in M&A investments. The total shareholder return was 38%, with shares reaching a 24-year high. For 2025, Deutsche Telekom guided for around EUR 44.9 billion in EBITDA, EUR 19.9 billion in free cash flow, and an adjusted earnings per share of EUR 2, reflecting a 9% increase.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.