# Deutsche Telekom AG (DTE.XETRA)

Canonical: https://gigainvestors.com/s/DTE.XETRA

Analysis as of: 2026-10-16T07:33:36.979Z. Financial observations: FY1996–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 25.59 per share; close as of 2026-10-15.

Estimated value: low EUR 22.33 per share, central EUR 25.35 per share, high EUR 29.37 per share. Buy at or below the central value EUR 25.35 per share. Valuation as of 2026-10-16T07:33:36.979Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; DE 10-year bond 3.4% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.12×

- FY2020: 0.12×

- FY2021: 0.12×

- FY2022: 0.13×

- FY2023: 0.19×

- FY2024: 0.23×

- FY2025: 0.23×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 29.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 7.3%

- ROIC, second-lowest year: 6.2%

- Typical minus recent gross margin: 29.5 pp

- Typical gross margin (annual median): 54.1%

- Recent gross margin (lower of latest and 3-year median): 24.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 18.6%

- ROIC including acquisitions, ten-year median: 4.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.9%

- FY2017: 9.6%

- FY2018: 6.7%

- FY2019: 7.1%

- FY2020: 6.9%

- FY2021: 6.2%

- FY2022: 7.5%

- FY2023: 8.5%

- FY2024: 11.2%

- FY2025: 11.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.68×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 40B

- Net income, five-year total: EUR 58B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, change between three-year averages: 9.9 pp

- Working capital / revenue, final three-year average: 14.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.03×

- FY2022: 0.55×

- FY2023: 0.58×

- FY2024: 0.82×

- FY2025: 1.29×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.7% vs 11.2%

- Per-share earnings: 0.72 to 2.28 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.6%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: EUR 58B

- Cumulative retained earnings: EUR 34B

- Diluted shares, 10-year annual growth: 0.6%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.6%

- Per-share value change: EUR 1.56

- Per-share value, starting three-year median: EUR 0.72

- Per-share value, ending three-year median: EUR 2.28

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 1.4%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 97B

- Cumulative net income, 10 years: EUR 79B

- ROIC, first three-year median: 6.7%

- ROIC, last three-year median: 11.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 0.58

- FY2017: EUR 0.74

- FY2018: EUR 0.46

- FY2019: EUR 1.11

- FY2020: EUR 1.42

- FY2021: EUR 1.27

- FY2022: EUR 1.91

- FY2023: EUR 4.42

- FY2024: EUR 2.28

- FY2025: EUR 1.99

### accounting: pass

- Sloan accruals: -10.0%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.23×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.15×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.7%

- FY2017: -9.7%

- FY2018: -10.9%

- FY2019: -9.6%

- FY2020: -6.4%

- FY2021: -9.3%

- FY2022: -8.2%

- FY2023: -4.9%

- FY2024: -8.7%

- FY2025: -10.0%

## Holders

## Price story

Down 26% since Feb 2025 · sales +3.4%

Story as of 2026-10-16T09:59:56.933Z; price observation 2026-10-15.

Price needs cash profits to grow 1% a year for ten years

- 2025-11-13: Deutsche Telekom Nudges Up Guidance Again, Raises Dividend as U.S. Unit Boosts Growth ([finance.yahoo.com](https://finance.yahoo.com/m/718fc7da-192a-3d19-97c5-5646e662cdfa/deutsche-telekom-nudges-up.html))

### Sales · FY2024–2025

sales +3.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: EUR 73B 

- FY2017: EUR 75B 

- FY2018: EUR 75B 

- FY2019: EUR 80B 

- FY2020: EUR 101B 

- FY2021: EUR 108B 

- FY2022: EUR 114B 

- FY2023: EUR 112B 

- FY2024: EUR 115B 

- FY2025: EUR 119B 

### Gross margin · FY2025

gross margin 24.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 52.1% 

- FY2017: 52.2% 

- FY2018: 52.6% 

- FY2019: 57.0% 

- FY2020: 58.4% 

- FY2021: 54.1% 

- FY2022: 54.2% 

- FY2023: 57.8% 

- FY2024: 61.1% 

- FY2025: 24.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are EUR 119.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2025: revenue 119081000000; grossProfit 29297000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DTE.XETRA: Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services worldwide. It operates through Germany, United States, Europe, Systems Solutions, and Group Development segments. The company 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. It 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 buys and markets network services to third parties, such as mobile virtual network operators. In addition, the company 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 network services. Further, it provides wireless communications services; and cloud services, digital solutions, and security and advisory solutions. The company has mobile and broadband customers, as well as fixed-network lines. Deutsche Telekom AG was founded in 1995 and is headquartered in Bonn, Germany.

### Why customers stay

Margins ranged from 24.6% to 61.1% during 2023–25; it earns 7.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2023: grossProfit / revenue = 57.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2024: grossProfit / revenue = 61.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2025: grossProfit / revenue = 24.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); 10-year return on capital observations [[2016,0.058642944862588274],[2017,0.09628599011868931],[2018,0.0674948684581226],[2019,0.07079426041686476],[2020,0.06921066414885452],[2021,0.06193231143821983],[2022,0.07497783604626292],[2023,0.08471946133327919],[2024,0.11248764739175644],[2025,0.11753010111683974]]; median 0.07288604823156383. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2016: growth capex 260000000; upkeep 13380000000; owner earnings 2675000000. Growth capex / owner earnings = 0.09719626168224299.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2018: growth capex 0; upkeep 12492000000; owner earnings 3510000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2019: growth capex 0; upkeep 14357000000; owner earnings 5680000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2020: growth capex 0; upkeep 18694000000; owner earnings 7044000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2021: growth capex 0; upkeep 26365000000; owner earnings 202200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2022: growth capex 0; upkeep 24114000000; owner earnings 5244600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2023: growth capex 0; upkeep 24290000000; owner earnings 12739400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2024: growth capex 0; upkeep 19171000000; owner earnings 9181641875.743332. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2025: growth capex 0; upkeep 12314000000; owner earnings 12408266635.401314. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); Dividend observations: [[2016,1596000000],[2017,1559000000],[2018,3254000000],[2019,3561000000],[2020,3067000000],[2021,3145000000],[2022,3385000000],[2023,4027000000],[2024,5592000000],[2025,6438000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); FY2025: cash repurchases 2000000000 EUR.

### Are managers owners

Insiders own 28.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DTE.XETRA SharesStats.PercentInsiders = 28.594 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1% yearly over ten years; actual growth was 13.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.979Z); Ten-year compound average after fade. Initial solved rate 0.001717227346670236. Price 25.59; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7162667840633943 → FY2025 2.5647396054423304. Closing-price date 2026-10-15.

## Monthly share-price history (EUR per share)

- 2016-10: EUR 14.85 per share

- 2016-11: EUR 14.87 per share

- 2016-12: EUR 16.36 per share

- 2017-01: EUR 16.16 per share

- 2017-02: EUR 16.31 per share

- 2017-03: EUR 16.43 per share

- 2017-04: EUR 16.10 per share

- 2017-05: EUR 17.73 per share

- 2017-06: EUR 15.72 per share

- 2017-07: EUR 15.45 per share

- 2017-08: EUR 15.16 per share

- 2017-09: EUR 15.79 per share

- 2017-10: EUR 15.64 per share

- 2017-11: EUR 15.01 per share

- 2017-12: EUR 14.80 per share

- 2018-01: EUR 14.13 per share

- 2018-02: EUR 13.26 per share

- 2018-03: EUR 13.25 per share

- 2018-04: EUR 14.50 per share

- 2018-05: EUR 13.22 per share

- 2018-06: EUR 13.27 per share

- 2018-07: EUR 14.15 per share

- 2018-08: EUR 13.91 per share

- 2018-09: EUR 13.89 per share

- 2018-10: EUR 14.50 per share

- 2018-11: EUR 15.49 per share

- 2018-12: EUR 14.82 per share

- 2019-01: EUR 14.19 per share

- 2019-02: EUR 14.49 per share

- 2019-03: EUR 14.80 per share

- 2019-04: EUR 14.91 per share

- 2019-05: EUR 15.11 per share

- 2019-06: EUR 15.21 per share

- 2019-07: EUR 14.88 per share

- 2019-08: EUR 15.18 per share

- 2019-09: EUR 15.39 per share

- 2019-10: EUR 15.77 per share

- 2019-11: EUR 15.24 per share

- 2019-12: EUR 14.57 per share

- 2020-01: EUR 14.61 per share

- 2020-02: EUR 14.76 per share

- 2020-03: EUR 11.81 per share

- 2020-04: EUR 13.33 per share

- 2020-05: EUR 14.18 per share

- 2020-06: EUR 14.95 per share

- 2020-07: EUR 14.17 per share

- 2020-08: EUR 14.75 per share

- 2020-09: EUR 14.29 per share

- 2020-10: EUR 13.07 per share

- 2020-11: EUR 15.12 per share

- 2020-12: EUR 14.96 per share

- 2021-01: EUR 14.70 per share

- 2021-02: EUR 15.03 per share

- 2021-03: EUR 17.17 per share

- 2021-04: EUR 16.00 per share

- 2021-05: EUR 16.99 per share

- 2021-06: EUR 17.81 per share

- 2021-07: EUR 17.51 per share

- 2021-08: EUR 18.01 per share

- 2021-09: EUR 17.40 per share

- 2021-10: EUR 16.08 per share

- 2021-11: EUR 15.59 per share

- 2021-12: EUR 16.30 per share

- 2022-01: EUR 16.67 per share

- 2022-02: EUR 16.03 per share

- 2022-03: EUR 16.93 per share

- 2022-04: EUR 17.57 per share

- 2022-05: EUR 19.12 per share

- 2022-06: EUR 18.95 per share

- 2022-07: EUR 18.51 per share

- 2022-08: EUR 18.79 per share

- 2022-09: EUR 17.49 per share

- 2022-10: EUR 19.16 per share

- 2022-11: EUR 19.41 per share

- 2022-12: EUR 18.64 per share

- 2023-01: EUR 20.45 per share

- 2023-02: EUR 21.24 per share

- 2023-03: EUR 22.35 per share

- 2023-04: EUR 21.88 per share

- 2023-05: EUR 20.75 per share

- 2023-06: EUR 19.98 per share

- 2023-07: EUR 19.84 per share

- 2023-08: EUR 19.74 per share

- 2023-09: EUR 19.87 per share

- 2023-10: EUR 20.48 per share

- 2023-11: EUR 21.98 per share

- 2023-12: EUR 21.75 per share

- 2024-01: EUR 22.75 per share

- 2024-02: EUR 21.99 per share

- 2024-03: EUR 22.50 per share

- 2024-04: EUR 21.49 per share

- 2024-05: EUR 22.29 per share

- 2024-06: EUR 23.48 per share

- 2024-07: EUR 24.17 per share

- 2024-08: EUR 25.71 per share

- 2024-09: EUR 26.39 per share

- 2024-10: EUR 27.82 per share

- 2024-11: EUR 30.28 per share

- 2024-12: EUR 28.89 per share

- 2025-01: EUR 32.35 per share

- 2025-02: EUR 34.75 per share

- 2025-03: EUR 34.22 per share

- 2025-04: EUR 31.60 per share

- 2025-05: EUR 33.28 per share

- 2025-06: EUR 30.97 per share

- 2025-07: EUR 31.48 per share

- 2025-08: EUR 31.22 per share

- 2025-09: EUR 29.01 per share

- 2025-10: EUR 26.89 per share

- 2025-11: EUR 27.76 per share

- 2025-12: EUR 27.66 per share

- 2026-01: EUR 28.17 per share

- 2026-02: EUR 34.09 per share

- 2026-03: EUR 31.95 per share

- 2026-04: EUR 27.57 per share

- 2026-05: EUR 28.86 per share

- 2026-06: EUR 23.85 per share

- 2026-07: EUR 26.76 per share

- 2026-08: EUR 28.38 per share

- 2026-09: EUR 26.11 per share

- 2026-10: EUR 25.11 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 9.44 per share, central EUR 10.56 per share, high EUR 12.04 per share

- FY2017: low EUR 6.78 per share, central EUR 7.66 per share, high EUR 8.83 per share

- FY2018: low EUR 8.55 per share, central EUR 9.67 per share, high EUR 11.15 per share

- FY2019: low EUR 9.41 per share, central EUR 10.60 per share, high EUR 12.18 per share

- FY2020: low EUR 13.12 per share, central EUR 14.61 per share, high EUR 16.59 per share

- FY2021: low EUR 12.22 per share, central EUR 13.79 per share, high EUR 15.89 per share

- FY2022: low EUR 12.08 per share, central EUR 13.70 per share, high EUR 15.84 per share

- FY2023: low EUR 19.16 per share, central EUR 23.45 per share, high EUR 27.24 per share

- FY2024: low EUR 18.68 per share, central EUR 21.14 per share, high EUR 24.42 per share

- FY2025: low EUR 22.18 per share, central EUR 25.14 per share, high EUR 29.08 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:22.885Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.