DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
NYSE:DTM - New York Stock Exchange, Inc. - US23345M1071 - Common Stock - Currency: USD
Overall DTM gets a fundamental rating of 4 out of 10. We evaluated DTM against 211 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.
1. Profitability
1.1 Basic Checks
DTM had positive earnings in the past year.
DTM had a positive operating cash flow in the past year.
DTM had positive earnings in each of the past 5 years.
In the past 5 years DTM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DTM (3.67%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.86%, DTM is in line with its industry, outperforming 50.71% of the companies in the same industry.
With a Return On Invested Capital value of 4.05%, DTM is not doing good in the industry: 63.51% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for DTM is significantly below the industry average of 23.79%.
The last Return On Invested Capital (4.05%) for DTM is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 7.86% | ||
| ROIC | 4.05% |
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 34.96%, DTM belongs to the top of the industry, outperforming 87.68% of the companies in the same industry.
In the last couple of years the Profit Margin of DTM has declined.
The Operating Margin of DTM (49.14%) is better than 90.52% 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 | 49.14% | ||
| PM (TTM) | 34.96% | ||
| 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.
Compared to 1 year ago, DTM has more shares outstanding
Compared to 5 years ago, DTM has more shares outstanding
DTM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that DTM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.56, DTM is in line with its industry, outperforming 55.92% of the companies in the same industry.
The Debt to FCF ratio of DTM is 7.59, which is on the high side as it means it would take DTM, 7.59 years of fcf income to pay off all of its debts.
DTM has a Debt to FCF ratio (7.59) which is in line with its industry peers.
DTM has a Debt/Equity ratio of 0.73. This is a neutral value indicating DTM is somewhat dependend on debt financing.
DTM has a worse Debt to Equity ratio (0.73) than 62.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.46
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.82 indicates that DTM may have some problems paying its short term obligations.
DTM has a Current ratio of 0.82. This is in the lower half of the industry: DTM underperforms 68.72% of its industry peers.
DTM has a Quick Ratio of 0.82. 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 0.82, DTM is doing worse than 61.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for DTM have decreased strongly by -10.49% in the last year.
DTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.26% yearly.
The Revenue has grown by 10.83% in the past year. This is quite good.
The Revenue has been growing by 14.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-10.49%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%7.07%
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.25%
3.2 Future
Based on estimates for the next years, DTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.51% on average per year.
The Revenue is expected to grow by 12.87% on average over the next years. This is quite good.
EPS Next Y22.39%
EPS Next 2Y16.63%
EPS Next 3Y14.51%
EPS Next 5YN/A
Revenue Next Year23.37%
Revenue Next 2Y15.42%
Revenue Next 3Y12.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 28.16 indicates a quite expensive valuation of DTM.
The rest of the industry has a similar Price/Earnings ratio as DTM.
The average S&P500 Price/Earnings ratio is at 27.30. DTM is around the same levels.
DTM is valuated rather expensively with a Price/Forward Earnings ratio of 21.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DTM indicates a slightly more expensive valuation: DTM is more expensive than 60.19% of the companies listed in the same industry.
DTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 21.11 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DTM indicates a slightly more expensive valuation: DTM is more expensive than 67.30% of the companies listed in the same industry.
DTM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.54 | ||
| EV/EBITDA | 18.15 |
4.3 Compensation for Growth
The 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 14.51% in the coming years.
PEG (NY)1.26
PEG (5Y)2.5
EPS Next 2Y16.63%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, DTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.48, DTM has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, DTM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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 78.90% of its income as dividend. This is not a sustainable payout ratio.
DP78.9%
EPS Next 2Y16.63%
EPS Next 3Y14.51%
103.35
+0.69 (+0.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.7%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner Change39.77%
Market Cap10.50B
Analysts73.68
Price Target109.78 (6.22%)
Short Float %3.51%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend2.83
Dividend Growth(5Y)N/A
DP78.9%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.27%
Min EPS beat(2)-18.87%
Max EPS beat(2)-3.67%
EPS beat(4)1
Avg EPS beat(4)-5.43%
Min EPS beat(4)-18.87%
Max EPS beat(4)5.12%
EPS beat(8)5
Avg EPS beat(8)2.8%
EPS beat(12)6
Avg EPS beat(12)-0.29%
EPS beat(16)7
Avg EPS beat(16)-1.06%
Revenue beat(2)1
Avg Revenue beat(2)0.15%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)3.37%
Revenue beat(4)3
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)3.37%
Revenue beat(8)5
Avg Revenue beat(8)-0.18%
Revenue beat(12)8
Avg Revenue beat(12)-0.55%
Revenue beat(16)10
Avg Revenue beat(16)-0.42%
PT rev (1m)2.34%
PT rev (3m)2.02%
EPS NQ rev (1m)-1.83%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 21.11 | ||
| P/S | 10.06 | ||
| P/FCF | 23.54 | ||
| P/OCF | 13.65 | ||
| P/B | 2.26 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 18.15 |
EPS(TTM)3.67
EY3.55%
EPS(NY)4.9
Fwd EY4.74%
FCF(TTM)4.39
FCFY4.25%
OCF(TTM)7.57
OCFY7.32%
SpS10.28
BVpS45.69
TBVpS19.28
PEG (NY)1.26
PEG (5Y)2.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 7.86% | ||
| ROCE | 5.37% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 5.69% | ||
| OM | 49.14% | ||
| PM (TTM) | 34.96% | ||
| GM | N/A | ||
| FCFM | 42.72% |
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%
ROICexcg growth 3Y-3.85%
ROICexcg 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-Score5
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.59 | ||
| Debt/EBITDA | 4.47 | ||
| Cap/Depr | 132.38% | ||
| Cap/Sales | 30.94% | ||
| Interest Coverage | 3.95 | ||
| Cash Conversion | 101.59% | ||
| Profit Quality | 122.19% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.56 |
F-Score5
WACC8.75%
ROIC/WACC0.46
Cap/Depr(3y)246.34%
Cap/Depr(5y)232.83%
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)-10.49%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%7.07%
EPS Next Y22.39%
EPS Next 2Y16.63%
EPS Next 3Y14.51%
EPS Next 5YN/A
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.25%
Revenue Next Year23.37%
Revenue Next 2Y15.42%
Revenue Next 3Y12.87%
Revenue Next 5YN/A
EBIT growth 1Y6.65%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year100.01%
EBIT Next 3Y31.27%
EBIT Next 5Y21.17%
FCF growth 1Y135.98%
FCF growth 3Y-1.49%
FCF growth 5Y18.2%
OCF growth 1Y4.63%
OCF growth 3Y10.08%
OCF growth 5Y14.36%