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Deutsche Telekom
(OTC:DTEGY)
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Rating:71Outperform
Price Target:
$36.00
â–²(5.91% Upside)
Action:Reiterated
Date:08/11/26
DTEGY scores well primarily on solid financial performance (strong profitability and cash generation despite elevated leverage) and a positive earnings update (raised free cash flow guidance and increased buyback capacity). Valuation is supportive with a reasonable P/E and ~3.5% yield, while technicals are only moderately bullish and still below longer-term moving averages, tempering the overall score.
Positive Factors
Strong cash generation
Very large operating cash flow and robust free cash flow provide durable internal funding for network capex, debt servicing, and shareholder returns. Over 2–6 months this supports sustained investment in fiber and mobile networks and allows management to prioritize buybacks or deleveraging without relying on external financing.
Negative Factors
Elevated leverage
Consistently high leverage limits financial flexibility and raises refinancing and interest-rate sensitivity risks. Over a multi-month horizon this constrains large incremental M&A or aggressive capex without either slowing buybacks/dividends or increasing leverage targets, reducing optionality for management.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Very large operating cash flow and robust free cash flow provide durable internal funding for network capex, debt servicing, and shareholder returns. Over 2–6 months this supports sustained investment in fiber and mobile networks and allows management to prioritize buybacks or deleveraging without relying on external financing.
Read all positive factors
Deutsche Telekom (DTEGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.73B
Dividend Yield3.46%
Average Volume (3M)678.30K
Price to Earnings (P/E)15.9
Beta (1Y)0.17
Revenue Growth9.65%
EPS Growth-25.16%
CountryUS
Employees198,079
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.79
Shares Outstanding4,849,778,000
10 Day Avg. Volume556,856
30 Day Avg. Volume678,298
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)2.17
Price to Sales (P/S)1.18
P/FCF Ratio4.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.59
Revenue Forecast (FY)$141.14B
Deutsche Telekom Business Overview & Revenue Model
Company Description
Operating as a comprehensive telecommunications service provider, Deutsche Telekom AG conducts its business across five distinct segments: Germany, the United States, Europe, Systems Solutions, and Group Development. The company furnishes a wide a...
How the Company Makes Money
Deutsche Telekom makes money primarily by selling subscription-based connectivity and related services across consumer and business markets, and by consolidating earnings from its majority-owned U.S. subsidiary.
1) Mobile service revenue (recurri...
Deutsche Telekom Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong financial metrics (organic revenue +3.9%, organic EBITDA‑AL +7.4%, adjusted EPS +10.3%), upgraded free cash flow guidance (~EUR 20bn), sustained multi-quarter EBITDA growth across segments, robust T‑Mobile performance, and a significant step-up in shareholder returns (additional EUR 3bn buyback facility). Headwinds include German broadband subscriber losses (‑20k), wholesale revenue declines, a roughly EUR 5bn q/q net debt increase, FX/dollar impacts, and market volatility driven by satellite competition concerns. On balance, the company presented broad operational momentum, clear capital allocation discipline and strategic actions to address share-price volatility, while acknowledging localized commercial and timing challenges.Positive Updates
Group top-line and profitability growth
Group organic sales revenue +3.9% (first 6 months); organic EBITDA-AL +7.4%; adjusted EPS +10.3% — reflecting broad-based growth across segments.
Negative Updates
Broadband subscriber losses and market challenges in Germany
Fixed broadband net loss of ~20,000 customers in the quarter (similar to prior year), driven largely by price-related churn following back‑book price increases; management expects moderation in Q3 and normalization in Q4 but sees broadband market dynamics as more challenging.
Read all updates
Q2-2026 Updates
Positive
Negative
Group top-line and profitability growth
Group organic sales revenue +3.9% (first 6 months); organic EBITDA-AL +7.4%; adjusted EPS +10.3% — reflecting broad-based growth across segments.
Read all positive updates
Company Guidance
Deutsche Telekom raised its group free cash flow guidance to around €20 billion (driven by T‑Mobile US’s €0.2bn midpoint FCF upgrade) and reiterated constant‑currency group EBITDA‑AL growth of ~6% to about €47.5 billion in 2026, with DT ex‑U.S. EBITDA‑AL guidance unchanged at €15.4 billion (roughly €15.5bn FX‑adjusted consensus); Germany’s full‑year EBITDA guidance of €11 billion remains intact, leverage stays well below the 2.75x target (~2.3x ex‑leases / ~2.68x incl. leases), and the board proposed an additional share buyback facility of up to €3 billion on top of the ongoing €2 billion program (bringing potential 2026 shareholder remuneration to almost €10 billion if fully utilized).Deutsche Telekom Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 120.27B | 114.38B | 118.43B | 114.73B | 117.07B | 110.47B |
| Gross Profit | 50.51B | 28.14B | 52.95B | 49.77B | 45.95B | 43.28B |
| EBITDA | 50.49B | 48.75B | 40.62B | 38.22B | 34.23B | 34.41B |
| Net Income | 8.66B | 9.23B | 11.21B | 17.79B | 8.00B | 4.18B |
Balance Sheet | ||||||
| Total Assets | 291.34B | 310.70B | 304.93B | 290.31B | 298.59B | 281.63B |
| Cash, Cash Equivalents and Short-Term Investments | 9.66B | 7.82B | 8.37B | 7.28B | 5.62B | 6.01B |
| Total Debt | 143.90B | 141.12B | 145.15B | 138.75B | 147.75B | 142.07B |
| Total Liabilities | 202.56B | 218.50B | 206.29B | 199.07B | 211.27B | 200.16B |
| Stockholders Equity | 60.24B | 62.14B | 63.30B | 56.92B | 48.56B | 42.68B |
Cash Flow | ||||||
| Free Cash Flow | 28.90B | 27.20B | 20.70B | 19.43B | 11.71B | 5.81B |
| Operating Cash Flow | 43.01B | 39.02B | 39.87B | 37.30B | 35.82B | 32.17B |
| Investing Cash Flow | -32.86B | -30.75B | -18.90B | -10.21B | -22.31B | -27.40B |
| Financing Cash Flow | -15.97B | -7.75B | -20.28B | -25.53B | -15.44B | -10.78B |
Deutsche Telekom Technical Analysis
Neutral
33.99
Price Trends
31.55
Positive
32.04
Positive
32.87
Positive
Market Momentum
0.39
Positive
49.99
Neutral
53.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTEGY, the sentiment is Neutral. The current price of 33.99 is above the 20-day moving average (MA) of 33.29, above the 50-day MA of 31.55, and above the 200-day MA of 32.87, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 53.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DTEGY.
Deutsche Telekom Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $175.97B | 8.47 | 19.48% | 4.32% | 2.63% | 72.35% | |
75 Outperform | $94.00B | 8.60 | 12.04% | 4.98% | 0.58% | -48.94% | |
74 Outperform | $194.71B | 18.95 | 18.22% | 2.25% | 9.68% | -10.02% | |
71 Outperform | $157.73B | 15.87 | 14.02% | 3.46% | 9.65% | -25.16% | |
69 Neutral | $208.32B | 13.06 | 15.52% | 5.57% | 1.38% | -10.78% | |
63 Neutral | $39.27B | -74.17 | -0.79% | 3.18% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
DTEGY
Deutsche Telekom
32.87
-1.80
-5.19%
T
AT&T
25.68
-1.92
-6.96%
CMCSA
Comcast
26.49
-3.89
-12.80%
VZ
Verizon
50.14
9.59
23.65%
VOD
Vodafone
16.90
5.54
48.81%
TMUS
T Mobile US
181.52
-56.35
-23.69%
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.