DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTM - US23345M1071 - Common Stock
120.99 USD
+1.31 (+1.09%)
120.99 USD
0 (0%)
Overall DTM gets a fundamental rating of 4 out of 10. We evaluated DTM against 208 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. While showing a medium growth rate, DTM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year DTM was profitable.
DTM had a positive operating cash flow in the past year.
In the past 5 years DTM has always been profitable.
DTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.01%, DTM perfoms like the industry average, outperforming 57.21% of the companies in the same industry.
DTM has a Return On Equity (8.57%) which is comparable to the rest of the industry.
DTM's Return On Invested Capital of 4.47% is on the low side compared to the rest of the industry. DTM is outperformed by 60.58% of its industry peers.
DTM had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 21.28%.
The last Return On Invested Capital (4.47%) for DTM is above the 3 year average (3.99%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 34.30%, DTM belongs to the top of the industry, outperforming 90.87% of the companies in the same industry.
DTM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 48.60%, DTM belongs to the top of the industry, outperforming 91.83% of the companies in the same industry.
In the last couple of years the Operating Margin of DTM has remained more or less at the same level.
| 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DTM is destroying value.
DTM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DTM has been increased compared to 5 years ago.
The debt/assets ratio for DTM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that DTM is in the distress zone and has some risk of bankruptcy.
DTM's Altman-Z score of 1.79 is fine compared to the rest of the industry. DTM outperforms 64.90% of its industry peers.
DTM has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as DTM would need 7.02 years to pay back of all of its debts.
The Debt to FCF ratio of DTM (7.02) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.71 indicates that DTM is somewhat dependend on debt financing.
The Debt to Equity ratio of DTM (0.71) is worse than 60.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.57
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.92 indicates that DTM may have some problems paying its short term obligations.
With a Current ratio value of 0.92, DTM is not doing good in the industry: 60.10% of the companies in the same industry are doing better.
DTM has a Quick Ratio of 0.92. This is a bad value and indicates that DTM is not financially healthy enough and could expect problems in meeting its short term obligations.
DTM's Quick ratio of 0.92 is in line compared to the rest of the industry. DTM outperforms 48.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for DTM have decreased by -3.65% in the last year.
The Earnings Per Share has been growing by 11.26% on average over the past years. This is quite good.
Looking at the last year, DTM shows a very strong growth in Revenue. 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
DTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.42% yearly.
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 Y22.7%
EPS Next 2Y17.24%
EPS Next 3Y14.8%
EPS Next 5Y13.42%
Revenue Next Year26.08%
Revenue Next 2Y16.98%
Revenue Next 3Y13.81%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.55 indicates a quite expensive valuation of DTM.
Based on the Price/Earnings ratio, DTM is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of DTM to the average of the S&P500 Index (26.60), we can say DTM is valued inline with the index average.
A Price/Forward Earnings ratio of 24.45 indicates a rather expensive valuation of DTM.
DTM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, DTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
70.19% of the companies in the same industry are cheaper than DTM, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as DTM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.01 | ||
| EV/EBITDA | 19.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
DTM's earnings are expected to grow with 14.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)2.71
EPS Next 2Y17.24%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.96, DTM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, DTM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 2Y17.24%
EPS Next 3Y14.8%
120.99
+1.31 (+1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner Change12.03%
Market Cap12.30B
Revenue(TTM)1.18B
Net Income(TTM)403.00M
Analysts75
Price Target121.94 (0.79%)
Short Float %4.2%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend2.83
Dividend Growth(5Y)N/A
DP77.42%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.38%
Min EPS beat(2)1.53%
Max EPS beat(2)5.24%
EPS beat(4)2
Avg EPS beat(4)-3.94%
Min EPS beat(4)-18.87%
Max EPS beat(4)5.24%
EPS beat(8)5
Avg EPS beat(8)2.7%
EPS beat(12)7
Avg EPS beat(12)0.89%
EPS beat(16)9
Avg EPS beat(16)0.13%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)1.31%
Max Revenue beat(2)3.21%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)3.37%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)8
Avg Revenue beat(12)-0.43%
Revenue beat(16)11
Avg Revenue beat(16)-0.33%
PT rev (1m)2.6%
PT rev (3m)9.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.2%
EPS NY rev (3m)1.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.95%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 24.45 | ||
| P/S | 10.47 | ||
| P/FCF | 26.01 | ||
| P/OCF | 14.34 | ||
| P/B | 2.62 | ||
| P/tB | 6.02 | ||
| EV/EBITDA | 19.36 |
EPS(TTM)3.96
EY3.27%
EPS(NY)4.95
Fwd EY4.09%
FCF(TTM)4.65
FCFY3.85%
OCF(TTM)8.44
OCFY6.98%
SpS11.56
BVpS46.25
TBVpS20.1
PEG (NY)1.35
PEG (5Y)2.71
Graham Number64.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 8.57% | ||
| ROCE | 5.88% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 6.24% | ||
| OM | 48.6% | ||
| PM (TTM) | 34.3% | ||
| GM | N/A | ||
| FCFM | 40.26% |
ROA(3y)4.01%
ROA(5y)3.91%
ROE(3y)8.72%
ROE(5y)8.35%
ROIC(3y)3.99%
ROIC(5y)3.95%
ROICexc(3y)4.01%
ROICexc(5y)3.98%
ROICexgc(3y)5.61%
ROICexgc(5y)5.69%
ROCE(3y)5.38%
ROCE(5y)5.91%
ROICexgc growth 3Y-3.85%
ROICexgc growth 5Y4.27%
ROICexc growth 3Y-1.72%
ROICexc growth 5Y7.01%
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
F-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 4.14 | ||
| Cap/Depr | 166.67% | ||
| Cap/Sales | 32.77% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 106.98% | ||
| Profit Quality | 117.37% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.79 |
F-Score4
WACC7.86%
ROIC/WACC0.57
Cap/Depr(3y)263.49%
Cap/Depr(5y)243.12%
Cap/Sales(3y)52.05%
Cap/Sales(5y)48.3%
Profit Quality(3y)76.01%
Profit Quality(5y)78.81%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.65%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%25.56%
EPS Next Y22.7%
EPS Next 2Y17.24%
EPS Next 3Y14.8%
EPS Next 5Y13.42%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.61%
Revenue Next Year26.08%
Revenue Next 2Y16.98%
Revenue Next 3Y13.81%
Revenue Next 5Y13.78%
EBIT growth 1Y15.12%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year99.67%
EBIT Next 3Y31.61%
EBIT Next 5Y22.13%
FCF growth 1Y2250%
FCF growth 3Y-1.49%
FCF growth 5Y18.2%
OCF growth 1Y12.16%
OCF growth 3Y10.08%
OCF growth 5Y14.36%
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 30.55 and the Price/Book (PB) ratio is 2.62.
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 22.7% in the next year.