Deutsche Telekom AG
Deutsche Telekom AG Fundamental Analysis
Deutsche Telekom AG (DTEGY) shows moderate financial fundamentals with a PE ratio of 13.40, profit margin of 10.05%, and ROE of 19.53%. The company generates $121.0B in annual revenue with weak year-over-year growth of 2.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DTEGY's fundamental strength across five key dimensions:
Efficiency Score
WeakDTEGY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDTEGY trades at attractive valuation levels.
Growth Score
WeakDTEGY faces weak or negative growth trends.
Financial Health Score
ModerateDTEGY shows balanced financial health with some risks.
Profitability Score
ModerateDTEGY maintains healthy but balanced margins.
Key Financial Metrics
Is DTEGY Expensive or Cheap?
P/E Ratio
DTEGY trades at 13.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, DTEGY's PEG of -4.06 indicates potential undervaluation.
Price to Book
The market values Deutsche Telekom AG at 2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.70 times EBITDA. This is generally considered low.
How Well Does DTEGY Make Money?
Net Profit Margin
For every $100 in sales, Deutsche Telekom AG keeps $10.05 as profit after all expenses.
Operating Margin
Core operations generate 23.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.53 in profit for every $100 of shareholder equity.
ROA
Deutsche Telekom AG generates $4.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Deutsche Telekom AG generates strong operating cash flow of $43.35B, reflecting robust business health.
Free Cash Flow
Deutsche Telekom AG generates strong free cash flow of $25.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.23 in free cash annually.
FCF Yield
DTEGY converts 15.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.001
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How DTEGY Stacks Against Its Sector Peers
| Metric | DTEGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.40 | 21.28 | Better (Cheaper) |
| ROE | 19.53% | 1116.00% | Weak |
| Net Margin | 10.05% | -55475.00% (disorted) | Strong |
| Debt/Equity | 2.28 | 1.38 | Weak (High Leverage) |
| Current Ratio | 1.00 | 1.61 | Neutral |
| ROA | 4.20% | -204822.00% (disorted) | Weak |
DTEGY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Deutsche Telekom AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.30%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
178.42%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
65.99%
Industry Style: Growth, Technology, Streaming
High Growth