Deutsche Telekom (DTEGY) AI Stock Analysis

• Market Cap: $183.39B
• Dividend Yield: 2.69%
• Average Volume (3M): 601.18K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.31
• Revenue Growth: 3.85%
• EPS Growth: 172.28%
• Country: US
• Employees: 198,194
• Sector: Communication Services
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.56
• Shares Outstanding: 4,986,458,500
• 10 Day Avg. Volume: 522,593
• 30 Day Avg. Volume: 601,177
• PEG Ratio: 0.09
• Price to Book (P/B): 2.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.71
• Price Target Upside: 23.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Deutsche Telekom's strong financial performance and promising strategic initiatives, particularly in the U.S. market, underpin its robust stock score. The company's effective cost management and AI-driven efficiencies are significant strengths. While technical indicators and fair valuation further support the stock, challenges in the German broadband market and competitive pressures are potential risks. Overall, the company's growth prospects and strategic focus contribute positively to its stock evaluation.

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 makes money primarily through its telecommunications services, which include mobile communications, fixed-network services, broadband internet, and IPTV. The company generates revenue from subscription fees, data usage, and additional services such as international roaming. In the mobile segment, earnings come from both contract and prepaid plans, as well as the sale of devices and accessories. In the fixed-network segment, revenue is derived from landline services and broadband internet subscriptions. Deutsche Telekom also earns from its IT services and solutions for business customers, including cloud services and security solutions. Key partnerships, such as its collaboration with T-Mobile US, significantly contribute to its earnings, along with strategic investments in infrastructure and technology to enhance service delivery and expand its market reach.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 36.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 36.89 is above the 20-day moving average (MA) of 36.07, above the 50-day MA of 35.75, and above the 200-day MA of 31.37, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 75.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTEGY.

Deutsche Telekom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTEGY	78 Outperform	$183.39B	14.02	19.46%	2.69%	3.85%	172.28%
VZ	78 Outperform	$185.47B	10.45	18.23%	6.13%	0.93%	56.97%
TMUS	73 Outperform	$275.53B	23.65	19.35%	1.26%	5.31%	38.46%
VOD	71 Outperform	$23.47B	9.21	4.31%	7.36%	-24.84%	-74.77%
T	69 Neutral	$199.46B	17.02	11.38%	4.00%	0.50%	-12.66%
TEF	64 Neutral	$27.94B	―	-0.55%	4.83%	1.18%	―
Sector *	60 Neutral	$14.07B	6.89	-3.35%	3.68%	2.42%	-36.25%