From a horizontal accumulation phase, the timing seems good to buy shares in Deutsche Telekom AG and to get ahead of a break-out on the upside of the congestion area.
Summary
● According to MSCI, the company's ESG score for its industry is good.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● The company has a low valuation given the cash flows generated by its activity.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The opinion of analysts covering the stock has improved over the past four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company's earnings growth outlook lacks momentum and is a weakness.
● One of the major weak points of the company is its financial situation.
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Deutsche Telekom AG is one of the world's leading telecommunication operators. Net sales break down by activity as follows:
- telecommunication services (83.3%): mobile telephony services (261.4 million subscribers at the end of 2024), fixed telephony (25.2 million subscribers), data transmission, Internet access, Websites hosting, mail service, development of information and communication systems, etc.;
- other (16.7%): notably sale of mobile handsets, accessories and telecommunications equipment.
Net sales are distributed geographically as follows: Germany (23.7%), Europe (10.9%), North America (64.9%) and other (0.5%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
