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Deutsche Telekom AG

DTE.DE
58
Telecommunications Services · Communication Services
Exchange
Frankfurt Stock Exchange (XETRA)
Winston Score
58
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Weak
Cash Flow
Exceptional
Stability
Good
Valuation
Strong
Dividends
Strong

Winston Score History

The full picture

Deutsche Telekom is a large German telecommunications company that provides mobile phone service, home internet, and TV to millions of customers across Europe and the United States. Its main brands include Telekom in Germany and T-Mobile in the US, serving both everyday consumers and businesses. It is one of the largest telecom companies in the world by subscribers.

The company earns money primarily through monthly subscription fees for mobile plans, broadband internet, and bundled services. Most of its revenue growth in recent years has come from T-Mobile US, which has become its most profitable segment and now accounts for a significant share of overall earnings. Deutsche Telekom's main competitive advantage is its scale and network infrastructure, which is expensive for rivals to replicate. The key risk is that telecom markets in Europe remain highly competitive and slow-growing, which could limit overall revenue gains even if the US business continues to perform well.

Score breakdown

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Quality

Profit per sale
Gross Margin
27.4%
Modest — 27.4% gross margin
Profit after running costs
Operating Margin
24.7%
Excellent — 24.7% operating margin
Return on the money invested
ROCE
15.0%
Strong — 15.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-29.7%
Shrinking sales (-29.7% YoY)
Profit growth
EPS YoY
-30.4%
Earnings shrinking (-30.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
472%
Turns 472% of profit into real cash
Spare cash per sale
FCF Margin
22.1%
Converts sales into free cash efficiently (22.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
1.89
Elevated debt (1.89)
Covers its interest
Interest Cover
4.07x
Adequate interest coverage (4.1x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
16.2x
no trend
Fair value — P/E 16.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+5.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (16.2 → 10.3)

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Dividends

Dividend
Dividend Yield
3.47%
no trend
Moderate income — 3.47% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+32.7%
no trend
Dividend growing fast (32.7% YoY)

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