German stock alert


Afternoon Alert: Deutsche Telekom hits 52-week low second time in one month 18 January 2018 12:17 CET


Deutsche Telekom AG (ETR:DTE) hit a 52-week low of EUR14.38 earlier today for the second time in the past one month, but later rebounded higher to EUR14.42.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 0.17 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ In the Xetra market, the stock's relative price strength percentile is slipping at 17 for 6 months, 17 for 3 months and 6 for 1 month.

+ In the last three months the stock has hit a new 52-week low twice.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Return on Assets 2.1% [3.5%]

+ Return on Capital Employed 6.3% [7.2%]

Other Bearish Signals include:

+ Net Profit margin is positive but falling in recent quarters.

+ Earnings per share growth rate has shown signs of deterioration in recent years.


Bullish Signals:

The company is cash rich with Cash to Market Capitalisation at 11.3%.

Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is undervalued.

Net profit margin has averaged 17.8% in the last 3 years. This is considered superior and suggests a high margin of safety.


The 0.3% premium to 12-month low of EUR14.38 against the 20.5% discount to high of EUR18.14 suggests the decline might be bottoming.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Price/Sales of 0.9 [1.1]

Return on Equity 12.1% [10.5%]

Deutsche Telekom AG (DE:DTE; ETR:DTE; GR:DTE)

ISIN: DE0005557508

PermID: 4295870332