Deutsche Telekom AG
Deutsche Telekom maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 2.27 and long-term debt totaling €141.18 billion against total equity of €62.17 billion. The balance sheet shows total assets of €289.77 billion and total liabilities of €227.60 billion. Liquidity is assessed as medium risk, supported by a current ratio of 1.12 and cash and equivalents of €7.82 billion. The company generates substantial operating cash flow of €40.63 billion, which covers capital expenditures of €19.26 billion, resulting in free cash flow of €13.17 billion. Profitability metrics indicate a return on equity of 15.46% and a return on assets of 3.32%. The company reports revenue of €119.08 billion, with gross profit of €73.02 billion and operating income of €24.82 billion. Net income stands at €9.61 billion. Valuation multiples include a price-to-earnings ratio of 13.11, a price-to-book ratio of 2.03, and an EV/EBITDA of 10.45. Segment and geographic revenue mix data is not available in the provided input, preventing detailed analysis of revenue concentration or regional exposure. Historical period data for revenue and net income trends is not available in the provided input, limiting the assessment of long-term growth trajectory. Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, reflecting the high leverage profile. Recent observations include analyst estimates with a mean price target of €37.64 and a median target of €38.00, indicating positive market sentiment. The mean recommendation is 1.68, with 7 strong buys and 11 buys. News event logs indicate a system refire trigger but no specific corporate news events.
Business. Deutsche Telekom AG operates as a diversified telecommunications provider, generating revenue through network services and connectivity solutions.
Classification. The company is classified under Diversified Telecommunication Services within the Communication Services sector, though the rule-based classification confidence is low at 0.20.
- High leverage with a debt-to-equity ratio of 2.27 and €141.18 billion in long-term debt.
- Strong cash generation with €40.63 billion in operating cash flow and €13.17 billion in free cash flow.
- Attractive valuation multiples with a P/E of 13.11 and EV/EBITDA of 10.45.
- Positive analyst sentiment with a mean recommendation of 1.68 and mean price target of €37.64.
- Medium liquidity risk flagged due to negative net cash position.
- margin_outlook_rationale: Gross margin stability is supported by €73.02 billion gross profit on €119.08 billion revenue, though operating leverage is pressured by high debt servicing costs.
- Net cash is negative after subtracting total debt.