Deutsche Telekom (DTE) AI Stock Analysis

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Deutsche Telekom

(XETRA:DTE)

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Rating:64Neutral

Price Target:EUR 28.00▲(6.91% Upside)

Action:downgraded

Date:11/09/26

The score is driven primarily by strong cash flow and solid operating profitability, partially offset by a leveraged balance sheet. Technicals are a secondary drag as the price remains below longer-term moving averages with slightly negative MACD, while valuation is supportive due to a moderate P/E and an attractive dividend yield.

Positive Factors

Strong Cash GenerationRobust operating and free cash flow gives Deutsche Telekom capacity to fund network investment, service obligations, and shareholder distributions internally. Improving cash generation also supports resilience across the telecommunications cycle and strengthens strategic flexibility over the coming quarters.

Negative Factors

High LeverageThe elevated debt burden is the clearest structural constraint on Deutsche Telekom. Although cash generation is strong, substantial leverage can limit financial flexibility, increase sensitivity to financing costs, and compete with network investment or other capital allocation priorities.

Deutsche Telekom (DTE) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 123.97B
Dividend Yield: 3.82%
Average Volume (3M): 6.46M
Price to Earnings (P/E): 14.0
Beta (1Y): 0.42
Revenue Growth: 3.66%
EPS Growth: -24.39%
Country: Germany
Employees: 191,796
Sector: General
Sector Strength: 55
Industry: Telecommunications Services

Deutsche Telekom Business Overview & Revenue Model

Company Description

Headquartered in Bonn, Germany, and established in 1995, Deutsche Telekom AG and its subsidiaries deliver a comprehensive suite of integrated telecommunications services. Its operations span five key segments: Germany, the United States, Europe, Syst...

How the Company Makes Money

Deutsche Telekom makes money mainly by selling connectivity and related services to consumers, small businesses, enterprises, and wholesale customers, with revenues largely recurring and subscription-based. 1) Consumer mobile services (wireless) - Se...

Deutsche Telekom Financial Statement Overview

Summary

Financials are supported by strong and improving cash generation (TTM operating cash flow ~€40.8B; free cash flow ~€26.5B) and solid operating profitability (TTM operating margin ~20%, EBITDA margin ~41%). The key constraint is leverage (TTM debt ~€144B vs equity ~€60B, ~2.3x), alongside some margin/ROE volatility that reduces consistency.

Income Statement

72Positive

Balance Sheet

58Neutral

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	120.28B	119.08B	115.11B	111.97B	114.20B	107.61B
Gross Profit	39.86B	29.30B	70.37B	25.21B	18.88B	16.43B
EBITDA	49.38B	49.96B	53.74B	45.30B	45.01B	39.95B
Net Income	8.64B	9.61B	11.21B	17.79B	8.00B	4.18B
Balance Sheet
Total Assets	291.34B	310.83B	328.29B	313.44B	321.03B	299.47B
Cash, Cash Equivalents and Short-Term Investments	5.37B	7.83B	8.48B	7.28B	5.77B	7.62B
Total Debt	144.47B	141.18B	146.46B	140.82B	147.16B	142.07B
Total Liabilities	202.56B	218.60B	229.65B	222.21B	233.71B	218.00B
Stockholders Equity	60.24B	62.17B	63.30B	56.92B	48.56B	42.68B
Cash Flow
Free Cash Flow	26.54B	28.31B	20.70B	19.43B	11.71B	5.81B
Operating Cash Flow	40.81B	40.63B	39.87B	37.30B	35.82B	32.17B
Investing Cash Flow	-31.64B	-32.01B	-18.90B	-22.91B	-22.31B	-27.40B
Financing Cash Flow	-14.43B	-8.07B	-20.28B	-12.83B	-15.44B	-10.78B

Deutsche Telekom Technical Analysis

Technical Analysis SentimentPositive

Last Price26.19

Price Trends

50DMA26.59Negative

100DMA26.93Negative

200DMA28.23Negative

Market Momentum

MACD-0.07Negative

RSI51.44Neutral

STOCH50.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:DTE, the sentiment is Positive. The current price of 26.19 is above the 20-day moving average (MA) of 25.78, below the 50-day MA of 26.59, and below the 200-day MA of 28.23, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 51.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:DTE.

Deutsche Telekom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:DTE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:SAP	80Outperform	EUR 245.13B	29.75	17.84%	1.19%	7.92%	16.68%
DE:SIE	74Outperform	EUR 206.99B	27.00	12.21%	1.93%	3.60%	-18.55%
DE:FNTN	70Outperform	EUR 2.76B	11.67	16.14%	8.70%	9.90%	-6.66%
DE:UTDI	66Neutral	EUR 4.59B	13.75	6.62%	2.04%	-7.60%	149.13%
DE:DTE	64Neutral	EUR 123.97B	14.01	14.47%	3.82%	3.66%	-24.39%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:1U1	51Neutral	EUR 5.16B	35.72	2.01%	0.21%	8.49%	-19.56%

* General Sector Average

Performance Comparison

DE:DTE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:DTE	Deutsche Telekom AG (UK)	26.19	-0.22	-0.84%
DE:1U1	1&1 Ag	24.35	2.60	11.95%
DE:FNTN	freenet AG	23.80	-2.12	-8.18%
DE:SAP	SAP SE	210.95	-3.51	-1.64%
DE:SIE	Siemens Ag (UK)	277.00	54.73	24.62%
DE:UTDI	United Internet	24.48	0.35	1.44%

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.

Date of analysis: Nov 08, 2026

Deutsche Telekom AI Stock Analysis