DTE ENERGY CO - DTE 6 1/4 10/01/2085 (DTK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTK - US2333317921
24.87 USD
+0.02 (+0.08%)
DTK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 26 industry peers in the Multi-Utilities industry. There are concerns on the financial health of DTK while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on DTK.
1. Profitability
1.1 Basic Checks
- In the past year DTK was profitable.
- In the past year DTK had a positive cash flow from operations.
- In the past 5 years DTK has always been profitable.
- Each year in the past 5 years DTK had a positive operating cash flow.
1.2 Ratios
- DTK has a Return On Assets of 2.66%. This is comparable to the rest of the industry: DTK outperforms 46.15% of its industry peers.
- DTK's Return On Equity of 11.37% is fine compared to the rest of the industry. DTK outperforms 65.38% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.19%, DTK is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
- DTK had an Average Return On Invested Capital over the past 3 years of 4.42%. This is in line with the industry average of 3.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 11.37% | ||
| ROIC | 4.19% |
ROA(3y)2.84%
ROA(5y)2.76%
ROE(3y)11.66%
ROE(5y)11.27%
ROIC(3y)4.42%
ROIC(5y)4.29%
1.3 Margins
- DTK has a worse Profit Margin (9.32%) than 76.92% of its industry peers.
- DTK's Profit Margin has improved in the last couple of years.
- DTK's Operating Margin of 15.53% is on the low side compared to the rest of the industry. DTK is outperformed by 92.31% of its industry peers.
- In the last couple of years the Operating Margin of DTK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.53% | ||
| PM (TTM) | 9.32% | ||
| GM | N/A |
OM growth 3Y18.54%
OM growth 5Y4.53%
PM growth 3Y22.97%
PM growth 5Y4.07%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- DTK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- DTK has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, DTK has more shares outstanding
- Compared to 1 year ago, DTK has a worse debt to assets ratio.
2.2 Solvency
- DTK has an Altman-Z score of 0.66. This is a bad value and indicates that DTK is not financially healthy and even has some risk of bankruptcy.
- DTK has a worse Altman-Z score (0.66) than 65.38% of its industry peers.
- DTK has a Debt/Equity ratio of 2.03. This is a high value indicating a heavy dependency on external financing.
- DTK has a Debt to Equity ratio of 2.03. This is amonst the worse of the industry: DTK underperforms 88.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.66 |
ROIC/WACC0.92
WACC4.58%
2.3 Liquidity
- A Current Ratio of 1.15 indicates that DTK should not have too much problems paying its short term obligations.
- With a decent Current ratio value of 1.15, DTK is doing good in the industry, outperforming 73.08% of the companies in the same industry.
- DTK has a Quick Ratio of 1.15. This is a bad value and indicates that DTK is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of DTK (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- DTK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.96%.
- The Earnings Per Share has been growing slightly by 1.63% on average over the past years.
- The Revenue has grown by 19.39% in the past year. This is quite good.
- Measured over the past years, DTK shows a decrease in Revenue. The Revenue has been decreasing by -0.34% on average per year.
EPS 1Y (TTM)-0.96%
EPS 3Y-0.39%
EPS 5Y1.63%
EPS Q2Q%1.35%
Revenue 1Y (TTM)19.39%
Revenue growth 3Y-5.93%
Revenue growth 5Y-0.34%
Sales Q2Q%21.37%
3.2 Future
- Based on estimates for the next years, DTK will show a small growth in Earnings Per Share. The EPS will grow by 7.53% on average per year.
- DTK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y6.9%
EPS Next 2Y6.93%
EPS Next 3Y7.14%
EPS Next 5Y7.53%
Revenue Next Year6.47%
Revenue Next 2Y5.3%
Revenue Next 3Y5.06%
Revenue Next 5Y5.1%
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 accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 3.44, the valuation of DTK can be described as very cheap.
- Based on the Price/Earnings ratio, DTK is valued cheaper than 88.46% of the companies in the same industry.
- DTK is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 3.18, the valuation of DTK can be described as very cheap.
- Based on the Price/Forward Earnings ratio, DTK is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
- DTK is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.44 | ||
| Fwd PE | 3.18 |
4.2 Price Multiples
- 88.46% of the companies in the same industry are more expensive than DTK, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
- DTK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.5
PEG (5Y)2.12
EPS Next 2Y6.93%
EPS Next 3Y7.14%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.45%, DTK has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.77, DTK has a dividend in line with its industry peers.
- DTK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
- The dividend of DTK has a limited annual growth rate of 1.15%.
- DTK is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)1.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 61.94% of the earnings are spent on dividend by DTK. This is not a sustainable payout ratio.
- The dividend of DTK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.94%
EPS Next 2Y6.93%
EPS Next 3Y7.14%
DTE ENERGY CO - DTE 6 1/4 10/01/2085 / DTK FAQ
Can you provide the ChartMill fundamental rating for DTE ENERGY CO - DTE 6 1/4 10/01/2085?
ChartMill assigns a fundamental rating of 4 / 10 to DTK.
Can you provide the valuation status for DTE ENERGY CO - DTE 6 1/4 10/01/2085?
ChartMill assigns a valuation rating of 7 / 10 to DTE ENERGY CO - DTE 6 1/4 10/01/2085 (DTK). This can be considered as Undervalued.
Can you provide the profitability details for DTE ENERGY CO - DTE 6 1/4 10/01/2085?
DTE ENERGY CO - DTE 6 1/4 10/01/2085 (DTK) has a profitability rating of 5 / 10.
How financially healthy is DTE ENERGY CO - DTE 6 1/4 10/01/2085?
The financial health rating of DTE ENERGY CO - DTE 6 1/4 10/01/2085 (DTK) is 1 / 10.
Can you provide the dividend sustainability for DTK stock?
The dividend rating of DTE ENERGY CO - DTE 6 1/4 10/01/2085 (DTK) is 4 / 10 and the dividend payout ratio is 61.94%.