DTE ENERGY COMPANY (DTE) Stock Fundamental Analysis
NYSE:DTE - New York Stock Exchange, Inc. - US2333311072 - Common Stock
DTE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Multi-Utilities industry. While DTE is still in line with the averages on profitability rating, there are concerns on its financial health. DTE has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year DTE was profitable.
In the past year DTE had a positive cash flow from operations.
In the past 5 years DTE has always been profitable.
In the past 5 years DTE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DTE (3.07%) is better than 76.00% of its industry peers.
DTE has a Return On Equity of 13.17%. This is amongst the best in the industry. DTE outperforms 88.00% of its industry peers.
DTE's Return On Invested Capital of 3.98% is fine compared to the rest of the industry. DTE outperforms 64.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DTE is in line with the industry average of 3.68%.
The last Return On Invested Capital (3.98%) for DTE is above the 3 year average (3.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 13.17% | ||
| ROIC | 3.98% |
ROA(3y)2.64%
ROA(5y)2.74%
ROE(3y)11.13%
ROE(5y)10.88%
ROIC(3y)3.85%
ROIC(5y)3.75%
1.3 Margins
With a Profit Margin value of 12.30%, DTE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of DTE has grown nicely.
DTE has a Operating Margin of 17.87%. This is amonst the worse of the industry: DTE underperforms 88.00% of its industry peers.
In the last couple of years the Operating Margin of DTE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.87% | ||
| PM (TTM) | 12.3% | ||
| GM | N/A |
OM growth 3Y2.22%
OM growth 5Y7.99%
PM growth 3Y-0.84%
PM growth 5Y6.81%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DTE is destroying value.
The number of shares outstanding for DTE has been increased compared to 1 year ago.
The number of shares outstanding for DTE has been increased compared to 5 years ago.
Compared to 1 year ago, DTE has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that DTE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.91, DTE is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
DTE has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
DTE has a worse Debt to Equity ratio (1.85) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.61
WACC6.5%
2.3 Liquidity
A Current Ratio of 0.83 indicates that DTE may have some problems paying its short term obligations.
DTE's Current ratio of 0.83 is in line compared to the rest of the industry. DTE outperforms 44.00% of its industry peers.
DTE has a Quick Ratio of 0.83. This is a bad value and indicates that DTE is not financially healthy enough and could expect problems in meeting its short term obligations.
DTE has a worse Quick ratio (0.62) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.79% over the past year.
Measured over the past years, DTE shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.91% on average per year.
Looking at the last year, DTE shows a very negative growth in Revenue. The Revenue has decreased by -10.21% in the last year.
DTE shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.16% yearly.
EPS 1Y (TTM)43.79%
EPS 3Y-7.29%
EPS 5Y-1.91%
EPS Q2Q%54.17%
Revenue 1Y (TTM)-10.21%
Revenue growth 3Y1.53%
Revenue growth 5Y-2.16%
Sales Q2Q%0.62%
3.2 Future
DTE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.43% yearly.
The Revenue is expected to decrease by -1.43% on average over the next years.
EPS Next Y18.72%
EPS Next 2Y12.69%
EPS Next 3Y11%
EPS Next 5Y9.43%
Revenue Next Year-20.89%
Revenue Next 2Y-9.95%
Revenue Next 3Y-5.58%
Revenue Next 5Y-1.43%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
DTE is valuated correctly with a Price/Earnings ratio of 16.67.
Compared to the rest of the industry, the Price/Earnings ratio of DTE is on the same level as its industry peers.
When comparing the Price/Earnings ratio of DTE to the average of the S&P500 Index (28.29), we can say DTE is valued slightly cheaper.
DTE is valuated correctly with a Price/Forward Earnings ratio of 16.70.
The rest of the industry has a similar Price/Forward Earnings ratio as DTE.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, DTE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
DTE's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DTE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.89
PEG (5Y)N/A
EPS Next 2Y12.69%
EPS Next 3Y11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, DTE has a reasonable but not impressive dividend return.
DTE's Dividend Yield is comparable with the industry average which is at 3.82.
Compared to an average S&P500 Dividend Yield of 2.28, DTE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of DTE has a limited annual growth rate of 1.23%.
DTE has been paying a dividend for at least 10 years, so it has a reliable track record.
DTE has decreased its dividend recently.
Dividend Growth(5Y)1.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
52.06% of the earnings are spent on dividend by DTE. This is a bit on the high side, but may be sustainable.
DTE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.06%
EPS Next 2Y12.69%
EPS Next 3Y11%
DTE ENERGY COMPANY
NYSE:DTE (1/22/2025, 11:32:50 AM)
121.51
-2.38 (-1.92%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners77.84%
Inst Owner Change0.25%
Ins Owners0.3%
Ins Owner Change0%
Market Cap25.16B
Analysts75.83
Price Target140.71 (15.8%)
Short Float %1.42%
Short Ratio2.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend3.65
Dividend Growth(5Y)1.23%
DP52.06%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.35%
Min EPS beat(2)15.6%
Max EPS beat(2)17.09%
EPS beat(4)2
Avg EPS beat(4)7.18%
Min EPS beat(4)-3.56%
Max EPS beat(4)17.09%
EPS beat(8)5
Avg EPS beat(8)3.91%
EPS beat(12)8
Avg EPS beat(12)4.31%
EPS beat(16)11
Avg EPS beat(16)6.04%
Revenue beat(2)1
Avg Revenue beat(2)2.65%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)8.82%
Revenue beat(4)1
Avg Revenue beat(4)-13.69%
Min Revenue beat(4)-55.23%
Max Revenue beat(4)8.82%
Revenue beat(8)2
Avg Revenue beat(8)-12.2%
Revenue beat(12)6
Avg Revenue beat(12)5.37%
Revenue beat(16)10
Avg Revenue beat(16)6.39%
PT rev (1m)1.01%
PT rev (3m)6.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.67 | ||
| Fwd PE | 16.7 | ||
| P/S | 2.03 | ||
| P/FCF | N/A | ||
| P/OCF | 7.39 | ||
| P/B | 2.17 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)7.29
EY6%
EPS(NY)7.28
Fwd EY5.99%
FCF(TTM)-4.52
FCFYN/A
OCF(TTM)16.44
OCFY13.53%
SpS59.95
BVpS55.97
TBVpS45.64
PEG (NY)0.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.07% | ||
| ROE | 13.17% | ||
| ROCE | 5.16% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.4% | ||
| OM | 17.87% | ||
| PM (TTM) | 12.3% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.64%
ROA(5y)2.74%
ROE(3y)11.13%
ROE(5y)10.88%
ROIC(3y)3.85%
ROIC(5y)3.75%
ROICexc(3y)3.85%
ROICexc(5y)3.76%
ROICexgc(3y)4.08%
ROICexgc(5y)4.1%
ROCE(3y)5.01%
ROCE(5y)4.85%
ROICexcg growth 3Y3.36%
ROICexcg growth 5Y0.28%
ROICexc growth 3Y5.64%
ROICexc growth 5Y1.23%
OM growth 3Y2.22%
OM growth 5Y7.99%
PM growth 3Y-0.84%
PM growth 5Y6.81%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.46 | ||
| Cap/Depr | 254.01% | ||
| Cap/Sales | 34.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.83 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.91 |
F-Score6
WACC6.5%
ROIC/WACC0.61
Cap/Depr(3y)244.53%
Cap/Depr(5y)247.64%
Cap/Sales(3y)24.55%
Cap/Sales(5y)25.79%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)43.79%
EPS 3Y-7.29%
EPS 5Y-1.91%
EPS Q2Q%54.17%
EPS Next Y18.72%
EPS Next 2Y12.69%
EPS Next 3Y11%
EPS Next 5Y9.43%
Revenue 1Y (TTM)-10.21%
Revenue growth 3Y1.53%
Revenue growth 5Y-2.16%
Sales Q2Q%0.62%
Revenue Next Year-20.89%
Revenue Next 2Y-9.95%
Revenue Next 3Y-5.58%
Revenue Next 5Y-1.43%
EBIT growth 1Y8.89%
EBIT growth 3Y3.78%
EBIT growth 5Y5.66%
EBIT Next Year93.38%
EBIT Next 3Y30.9%
EBIT Next 5Y21.62%
FCF growth 1Y31.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y61.56%
OCF growth 3Y-4.5%
OCF growth 5Y3.74%