DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
NYSE:DTM - New York Stock Exchange, Inc. - US23345M1071 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to DTM. DTM was compared to 211 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. While showing a medium growth rate, DTM is valued expensive at the moment.
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.
DTM had positive earnings in each of the past 5 years.
DTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.68%, DTM is in line with its industry, outperforming 48.04% of the companies in the same industry.
DTM has a Return On Equity (9.53%) which is in line with its industry peers.
DTM has a Return On Invested Capital of 4.72%. This is in the lower half of the industry: DTM underperforms 64.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DTM is significantly below the industry average of 28.75%.
The last Return On Invested Capital (4.72%) for DTM is above the 3 year average (4.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.53% | ||
| ROIC | 4.72% |
ROA(3y)4.07%
ROA(5y)3.72%
ROE(3y)8.81%
ROE(5y)7.96%
ROIC(3y)4.21%
ROIC(5y)3.88%
1.3 Margins
DTM's Profit Margin of 41.19% is amongst the best of the industry. DTM outperforms 89.71% of its industry peers.
DTM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 50.82%, DTM belongs to the best of the industry, outperforming 90.69% of the companies in the same industry.
In the last couple of years the Operating Margin of DTM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 50.82% | ||
| PM (TTM) | 41.19% | ||
| GM | N/A |
OM growth 3Y-2.5%
OM growth 5Y-2.09%
PM growth 3Y0.22%
PM growth 5Y-2.65%
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 about the same amout of shares outstanding than it did 1 year ago.
DTM has a better debt/assets ratio than last year.
2.2 Solvency
DTM has an Altman-Z score of 1.81. This is not the best score and indicates that DTM is in the grey zone with still only limited risk for bankruptcy at the moment.
DTM has a Altman-Z score (1.81) which is in line with its industry peers.
DTM has a debt to FCF ratio of 6.95. This is a slightly negative value and a sign of low solvency as DTM would need 6.95 years to pay back of all of its debts.
DTM has a Debt to FCF ratio (6.95) which is in line with its industry peers.
DTM has a Debt/Equity ratio of 0.63. This is a neutral value indicating DTM is somewhat dependend on debt financing.
DTM has a Debt to Equity ratio of 0.63. This is in the lower half of the industry: DTM underperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.95 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.58
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.95 indicates that DTM may have some problems paying its short term obligations.
The Current ratio of DTM (0.95) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.95 indicates that DTM may have some problems paying its short term obligations.
DTM's Quick ratio of 0.95 is in line compared to the rest of the industry. DTM outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
DTM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.91%, which is quite good.
DTM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.60% yearly.
The Revenue has been growing slightly by 5.97% in the past year.
Measured over the past years, DTM shows a quite strong growth in Revenue. The Revenue has been growing by 13.71% on average per year.
EPS 1Y (TTM)12.91%
EPS 3Y6.94%
EPS 5Y10.6%
EPS Q2Q%-4.26%
Revenue 1Y (TTM)5.97%
Revenue growth 3Y6.94%
Revenue growth 5Y13.71%
Sales Q2Q%5.98%
3.2 Future
The Earnings Per Share is expected to grow by 7.13% on average over the next years.
Based on estimates for the next years, DTM will show a quite strong growth in Revenue. The Revenue will grow by 11.02% on average per year.
EPS Next Y-3.05%
EPS Next 2Y7.09%
EPS Next 3Y7.13%
EPS Next 5YN/A
Revenue Next Year7.82%
Revenue Next 2Y14.63%
Revenue Next 3Y12.26%
Revenue Next 5Y11.02%
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 decreasing.
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
With a Price/Earnings ratio of 23.97, DTM is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of DTM indicates a slightly more expensive valuation: DTM is more expensive than 66.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. DTM is around the same levels.
With a Price/Forward Earnings ratio of 21.75, DTM is valued on the expensive side.
DTM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. DTM is more expensive than 61.76% of the companies in the same industry.
DTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 21.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DTM is valued a bit more expensive than the industry average as 73.04% of the companies are valued more cheaply.
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 | 25.93 | ||
| EV/EBITDA | 18.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.26
EPS Next 2Y7.09%
EPS Next 3Y7.13%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.67, DTM has a dividend in line with its industry peers.
DTM's Dividend Yield is a higher than the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
DTM has paid a dividend for less than 5 years, so there is no long track record yet.
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
68.66% of the earnings are spent on dividend by DTM. This is not a sustainable payout ratio.
DP68.66%
EPS Next 2Y7.09%
EPS Next 3Y7.13%
98.52
-1.49 (-1.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners86.78%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner Change18.04%
Market Cap9.98B
Analysts69.41
Price Target106.58 (8.18%)
Short Float %2.99%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend2.71
Dividend Growth(5Y)N/A
DP68.66%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.4%
Min EPS beat(2)-4.32%
Max EPS beat(2)5.12%
EPS beat(4)3
Avg EPS beat(4)9.34%
Min EPS beat(4)-4.32%
Max EPS beat(4)33.11%
EPS beat(8)5
Avg EPS beat(8)3.31%
EPS beat(12)7
Avg EPS beat(12)1.49%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)1.92%
Min Revenue beat(2)1.74%
Max Revenue beat(2)2.1%
Revenue beat(4)3
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-2%
Max Revenue beat(4)3.04%
Revenue beat(8)5
Avg Revenue beat(8)-1.25%
Revenue beat(12)8
Avg Revenue beat(12)-0.84%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)4.59%
PT rev (3m)35.32%
EPS NQ rev (1m)-9.03%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-2.23%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.97 | ||
| Fwd PE | 21.75 | ||
| P/S | 10.23 | ||
| P/FCF | 25.93 | ||
| P/OCF | 12.56 | ||
| P/B | 2.37 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 18.16 |
EPS(TTM)4.11
EY4.17%
EPS(NY)4.53
Fwd EY4.6%
FCF(TTM)3.8
FCFY3.86%
OCF(TTM)7.85
OCFY7.96%
SpS9.63
BVpS41.63
TBVpS17.96
PEG (NY)N/A
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.68% | ||
| ROE | 9.53% | ||
| ROCE | 5.96% | ||
| ROIC | 4.72% | ||
| ROICexc | 4.76% | ||
| ROICexgc | 6.72% | ||
| OM | 50.82% | ||
| PM (TTM) | 41.19% | ||
| GM | N/A | ||
| FCFM | 39.45% |
ROA(3y)4.07%
ROA(5y)3.72%
ROE(3y)8.81%
ROE(5y)7.96%
ROIC(3y)4.21%
ROIC(5y)3.88%
ROICexc(3y)4.25%
ROICexc(5y)3.92%
ROICexgc(3y)6.08%
ROICexgc(5y)5.72%
ROCE(3y)5.41%
ROCE(5y)6.07%
ROICexcg growth 3Y0.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y2.34%
ROICexc growth 5YN/A
OM growth 3Y-2.5%
OM growth 5Y-2.09%
PM growth 3Y0.22%
PM growth 5Y-2.65%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.95 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 200% | ||
| Cap/Sales | 42.01% | ||
| Interest Coverage | 3.44 | ||
| Cash Conversion | 113.41% | ||
| Profit Quality | 95.77% | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.81 |
F-Score8
WACC8.11%
ROIC/WACC0.58
Cap/Depr(3y)235.78%
Cap/Depr(5y)255%
Cap/Sales(3y)45.71%
Cap/Sales(5y)49.54%
Profit Quality(3y)84.03%
Profit Quality(5y)73.03%
High Growth Momentum
Growth
EPS 1Y (TTM)12.91%
EPS 3Y6.94%
EPS 5Y10.6%
EPS Q2Q%-4.26%
EPS Next Y-3.05%
EPS Next 2Y7.09%
EPS Next 3Y7.13%
EPS Next 5YN/A
Revenue 1Y (TTM)5.97%
Revenue growth 3Y6.94%
Revenue growth 5Y13.71%
Sales Q2Q%5.98%
Revenue Next Year7.82%
Revenue Next 2Y14.63%
Revenue Next 3Y12.26%
Revenue Next 5Y11.02%
EBIT growth 1Y7.13%
EBIT growth 3Y4.27%
EBIT growth 5Y11.33%
EBIT Next Year86.48%
EBIT Next 3Y31.79%
EBIT Next 5Y21.88%
FCF growth 1Y-17.2%
FCF growth 3Y-30.96%
FCF growth 5Y-32.31%
OCF growth 1Y16.57%
OCF growth 3Y10.16%
OCF growth 5Y17.32%