DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTM - US23345M1071 - Common Stock
119.4 USD
+2.09 (+1.78%)
119.41 USD
+0.01 (+0.01%)
We assign a fundamental rating of 4 out of 10 to DTM. DTM was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. DTM has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year DTM had a positive cash flow from operations.
Each year in the past 5 years DTM has been profitable.
In the past 5 years DTM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.01%, DTM is in line with its industry, outperforming 55.71% of the companies in the same industry.
DTM has a Return On Equity (8.57%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 4.47%, DTM is doing worse than 61.90% of the companies in the same industry.
DTM had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 21.41%.
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 Profit Margin of 34.30%. This is amongst the best in the industry. DTM outperforms 90.48% of its industry peers.
In the last couple of years the Profit Margin of DTM has declined.
Looking at the Operating Margin, with a value of 48.60%, DTM belongs to the top of the industry, outperforming 91.43% 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.
The number of shares outstanding for DTM has been increased compared to 1 year ago.
DTM has more shares outstanding than it did 5 years ago.
DTM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that DTM is in the distress zone and has some risk of bankruptcy.
DTM's Altman-Z score of 1.77 is fine compared to the rest of the industry. DTM outperforms 63.81% 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 58.10% of its industry peers.
DTM has a Debt/Equity ratio of 0.71. This is a neutral value indicating 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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.56
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.92 indicates that DTM may have some problems paying its short term obligations.
DTM has a Current ratio of 0.92. This is in the lower half of the industry: DTM underperforms 60.00% 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 48.57% 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.
Looking at the last year, DTM shows a very strong growth in Revenue. 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
Based on estimates for the next years, DTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.53% on average per year.
Based on estimates for the next years, DTM will show a quite strong growth in Revenue. The Revenue will grow by 13.99% on average per year.
EPS Next Y21.34%
EPS Next 2Y16.43%
EPS Next 3Y14.56%
EPS Next 5Y9.53%
Revenue Next Year25.38%
Revenue Next 2Y16.85%
Revenue Next 3Y13.99%
Revenue Next 5YN/A
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 stable.
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
The Price/Earnings ratio is 30.15, which means the current valuation is very expensive for DTM.
62.38% 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 (26.15), we can say DTM is valued inline with the index average.
DTM is valuated rather expensively with a Price/Forward Earnings ratio of 24.47.
60.00% of the companies in the same industry are cheaper than DTM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.12. DTM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 24.47 |
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 70.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.64 | ||
| EV/EBITDA | 19.14 |
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 14.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.41
PEG (5Y)2.68
EPS Next 2Y16.43%
EPS Next 3Y14.56%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 2.82%.
DTM's Dividend Yield is comparable with the industry average which is at 5.88.
Compared to an average S&P500 Dividend Yield of 2.41, DTM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 2Y16.43%
EPS Next 3Y14.56%
119.4
+2.09 (+1.78%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners87.59%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner Change12.03%
Market Cap12.13B
Revenue(TTM)1.18B
Net Income(TTM)403.00M
Analysts73.68
Price Target118.85 (-0.46%)
Short Float %3.63%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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)6.73%
PT rev (3m)6.81%
EPS NQ rev (1m)-2.73%
EPS NQ rev (3m)-2.6%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.15 | ||
| Fwd PE | 24.47 | ||
| P/S | 10.32 | ||
| P/FCF | 25.64 | ||
| P/OCF | 14.14 | ||
| P/B | 2.58 | ||
| P/tB | 5.93 | ||
| EV/EBITDA | 19.14 |
EPS(TTM)3.96
EY3.32%
EPS(NY)4.88
Fwd EY4.09%
FCF(TTM)4.66
FCFY3.9%
OCF(TTM)8.45
OCFY7.07%
SpS11.57
BVpS46.28
TBVpS20.12
PEG (NY)1.41
PEG (5Y)2.68
Graham Number64.22
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 | 1.77 |
F-Score4
WACC7.94%
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 Y21.34%
EPS Next 2Y16.43%
EPS Next 3Y14.56%
EPS Next 5Y9.53%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.61%
Revenue Next Year25.38%
Revenue Next 2Y16.85%
Revenue Next 3Y13.99%
Revenue Next 5YN/A
EBIT growth 1Y15.12%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year99.49%
EBIT Next 3Y31.64%
EBIT Next 5Y21.59%
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 21.34% 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%.