DTM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While DTM is still in line with the averages on profitability rating, there are concerns on its financial health. DTM is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year DTM was profitable.
In the past year DTM had a positive cash flow from operations.
Each year in the past 5 years DTM has been profitable.
Each year in the past 5 years DTM had a positive operating cash flow.

1.2 Ratios

The Return On Assets of DTM (4.01%) is comparable to the rest of the industry.
DTM has a Return On Equity of 8.57%. This is comparable to the rest of the industry: DTM outperforms 56.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.47%, DTM is doing worse than 60.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DTM is significantly below the industry average of 21.94%.
The 3 year average ROIC (3.99%) for DTM is below the current ROIC(4.47%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	4.01%
ROE	8.57%
ROIC	4.47%

ROA(3y)4.01%

ROA(5y)3.91%

ROE(3y)8.72%

ROE(5y)8.35%

ROIC(3y)3.99%

ROIC(5y)3.95%

1.3 Margins

DTM has a better Profit Margin (34.30%) than 90.82% of its industry peers.
In the last couple of years the Profit Margin of DTM has declined.
DTM has a better Operating Margin (48.60%) than 91.79% of its industry peers.
DTM's Operating Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	48.6%
PM (TTM)	34.3%
GM	N/A

OM growth 3Y-0.02%

OM growth 5Y-0.84%

PM growth 3Y-0.42%

PM growth 5Y-2.27%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

DTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DTM has more shares outstanding
DTM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for DTM has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.84 indicates that DTM is not a great score, but indicates only limited risk for bankruptcy at the moment.
DTM has a better Altman-Z score (1.84) than 62.80% of its industry peers.
The Debt to FCF ratio of DTM is 7.02, which is on the high side as it means it would take DTM, 7.02 years of fcf income to pay off all of its debts.
DTM has a Debt to FCF ratio of 7.02. This is comparable to the rest of the industry: DTM outperforms 57.49% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that DTM is somewhat dependend on debt financing.
DTM has a worse Debt to Equity ratio (0.71) than 60.87% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.71
Debt/FCF	7.02
Altman-Z	1.84

ROIC/WACC0.55

WACC8.14%

2.3 Liquidity

A Current Ratio of 0.92 indicates that DTM may have some problems paying its short term obligations.
The Current ratio of DTM (0.92) is worse than 61.35% of its industry peers.
A Quick Ratio of 0.92 indicates that DTM may have some problems paying its short term obligations.
The Quick ratio of DTM (0.92) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	0.92
Quick Ratio	0.92

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

DTM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
Measured over the past years, DTM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.26% on average per year.
DTM shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.39%.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.

EPS 1Y (TTM)-3.65%

EPS 3Y4.31%

EPS 5Y11.26%

EPS Q2Q%25.56%

Revenue 1Y (TTM)20.39%

Revenue growth 3Y5.31%

Revenue growth 5Y14.25%

Sales Q2Q%26.61%

3.2 Future

The Earnings Per Share is expected to grow by 13.42% on average over the next years. This is quite good.
DTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.78% yearly.

EPS Next Y22.93%

EPS Next 2Y17.2%

EPS Next 3Y14.8%

EPS Next 5Y13.42%

Revenue Next Year26.18%

Revenue Next 2Y16.98%

Revenue Next 3Y13.84%

Revenue Next 5Y13.78%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 31.68, DTM can be considered very expensive at the moment.
61.84% of the companies in the same industry are cheaper than DTM, based on the Price/Earnings ratio.
DTM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.39.
A Price/Forward Earnings ratio of 25.37 indicates a quite expensive valuation of DTM.
The rest of the industry has a similar Price/Forward Earnings ratio as DTM.
DTM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	31.68
Fwd PE	25.37

4.2 Price Multiples

DTM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DTM is more expensive than 69.08% of the companies in the same industry.
DTM's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	26.97
EV/EBITDA	19.93

4.3 Compensation for Growth

DTM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as DTM's earnings are expected to grow with 14.80% in the coming years.

PEG (NY)1.38

PEG (5Y)2.81

EPS Next 2Y17.2%

EPS Next 3Y14.8%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.70%, DTM has a reasonable but not impressive dividend return.
DTM's Dividend Yield is comparable with the industry average which is at 3.73.
DTM's Dividend Yield is a higher than the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.7%

5.2 History

DTM has been paying a dividend for over 5 years, so it has already some track record.
DTM has not decreased its dividend in the last 3 years.

Dividend Growth(5Y)N/A

Div Incr Years3

Div Non Decr Years3

5.3 Sustainability

DTM pays out 77.42% of its income as dividend. This is not a sustainable payout ratio.

DP77.42%

EPS Next 2Y17.2%

EPS Next 3Y14.8%

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DT MIDSTREAM INC / DTM FAQ

What is the ChartMill fundamental rating of DT MIDSTREAM INC (DTM) stock?

ChartMill assigns a fundamental rating of 4 / 10 to DTM.

What is the valuation status for DTM stock?

ChartMill assigns a valuation rating of 2 / 10 to DT MIDSTREAM INC (DTM). This can be considered as Overvalued.

Can you provide the profitability details for DT MIDSTREAM INC?

DT MIDSTREAM INC (DTM) has a profitability rating of 5 / 10.

Can you provide the PE and PB ratios for DTM stock?

The Price/Earnings (PE) ratio for DT MIDSTREAM INC (DTM) is 31.68 and the Price/Book (PB) ratio is 2.71.

What is the earnings growth outlook for DT MIDSTREAM INC?

The Earnings per Share (EPS) of DT MIDSTREAM INC (DTM) is expected to grow by 22.93% in the next year.