DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTM - US23345M1071 - Common Stock
118.02 USD
+0.36 (+0.31%)
118.02 USD
0 (0%)
Taking everything into account, DTM scores 4 out of 10 in our fundamental rating. DTM was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of DTM while its profitability can be described as average. DTM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year DTM was profitable.
DTM had a positive operating cash flow in the past year.
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
DTM has a Return On Assets (4.01%) which is in line with its industry peers.
DTM has a Return On Equity of 8.57%. This is comparable to the rest of the industry: DTM outperforms 57.21% of its industry peers.
The Return On Invested Capital of DTM (4.47%) is worse than 62.02% 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 21.00%.
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
DTM has a better Profit Margin (34.30%) than 90.87% of its industry peers.
In the last couple of years the Profit Margin of DTM has declined.
The Operating Margin of DTM (48.60%) is better than 91.35% of its industry peers.
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
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
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 1.75, we must say that DTM is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.75, DTM is doing good in the industry, outperforming 63.46% of the companies in the same industry.
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.
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.
DTM has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: DTM underperforms 62.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.56
WACC7.97%
2.3 Liquidity
DTM has a Current 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.
The Current ratio of DTM (0.92) is worse than 60.58% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.92, DTM is in line with its industry, outperforming 48.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
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%.
The Earnings Per Share has been growing by 11.26% on average over the past years. This is quite good.
DTM shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.39%.
Measured over the past years, DTM shows a quite strong growth in Revenue. The Revenue has been growing by 14.25% on average per year.
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 Y22.46%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
EPS Next 5Y13.42%
Revenue Next Year27.29%
Revenue Next 2Y17.63%
Revenue Next 3Y14.4%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.80 indicates a quite expensive valuation of DTM.
62.98% of the companies in the same industry are cheaper than DTM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DTM to the average of the S&P500 Index (26.38), we can say DTM is valued inline with the index average.
A Price/Forward Earnings ratio of 23.88 indicates a rather expensive valuation of DTM.
The rest of the industry has a similar Price/Forward Earnings ratio as DTM.
The average S&P500 Price/Forward Earnings ratio is at 23.83. DTM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 23.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DTM is valued a bit more expensive than the industry average as 70.19% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as DTM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.37 | ||
| EV/EBITDA | 18.94 |
4.3 Compensation for Growth
DTM's 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 14.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)2.65
EPS Next 2Y17.18%
EPS Next 3Y14.65%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 2.79%.
DTM's Dividend Yield is comparable with the industry average which is at 3.83.
DTM's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
77.42% of the earnings are spent on dividend by DTM. This is not a sustainable payout ratio.
DP77.42%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
118.02
+0.36 (+0.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.1%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner Change12.03%
Market Cap12.00B
Revenue(TTM)1.18B
Net Income(TTM)403.00M
Analysts75
Price Target120.17 (1.82%)
Short Float %4.04%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend2.83
Dividend Growth(5Y)N/A
DP77.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)3.47%
PT rev (3m)7.77%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)0.92%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.8 | ||
| Fwd PE | 23.88 | ||
| P/S | 10.21 | ||
| P/FCF | 25.37 | ||
| P/OCF | 13.98 | ||
| P/B | 2.55 | ||
| P/tB | 5.87 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)3.96
EY3.36%
EPS(NY)4.94
Fwd EY4.19%
FCF(TTM)4.65
FCFY3.94%
OCF(TTM)8.44
OCFY7.15%
SpS11.56
BVpS46.25
TBVpS20.1
PEG (NY)1.33
PEG (5Y)2.65
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 | 1.75 |
F-Score4
WACC7.97%
ROIC/WACC0.56
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 Y22.46%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
EPS Next 5Y13.42%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.61%
Revenue Next Year27.29%
Revenue Next 2Y17.63%
Revenue Next 3Y14.4%
Revenue Next 5Y13.78%
EBIT growth 1Y15.12%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year99.67%
EBIT Next 3Y31.71%
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.
Can you provide the valuation status for DT MIDSTREAM INC?
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.
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 22.46% in the next year.
How sustainable is the dividend of DT MIDSTREAM INC (DTM) stock?
The dividend rating of DT MIDSTREAM INC (DTM) is 3 / 10 and the dividend payout ratio is 77.42%.