DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
NYSE:DTM - New York Stock Exchange, Inc. - US23345M1071 - Common Stock - Currency: USD
DTM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 213 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 valied quite expensively at the moment, while 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.
DTM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DTM has a Return On Assets of 3.67%. This is comparable to the rest of the industry: DTM outperforms 53.05% of its industry peers.
DTM has a Return On Equity (7.86%) which is in line with its industry peers.
DTM has a Return On Invested Capital of 4.05%. This is in the lower half of the industry: DTM underperforms 63.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DTM is significantly below the industry average of 23.55%.
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
DTM has a better Profit Margin (34.96%) than 87.79% of its industry peers.
In the last couple of years the Profit Margin of DTM has declined.
DTM has a Operating Margin of 49.14%. This is amongst the best in the industry. DTM outperforms 90.61% of its industry peers.
DTM's Operating Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DTM is destroying value.
Compared to 1 year ago, DTM has more shares outstanding
Compared to 5 years ago, DTM has more shares outstanding
The debt/assets ratio for DTM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that DTM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.60, DTM perfoms like the industry average, outperforming 55.40% of the companies in the same industry.
DTM has a debt to FCF ratio of 7.59. This is a slightly negative value and a sign of low solvency as DTM would need 7.59 years to pay back of all of its debts.
DTM's Debt to FCF ratio of 7.59 is in line compared to the rest of the industry. DTM outperforms 54.46% of 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.
Looking at the Debt to Equity ratio, with a value of 0.73, DTM is doing worse than 62.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.53
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.82 indicates that DTM may have some problems paying its short term obligations.
With a Current ratio value of 0.82, DTM is not doing good in the industry: 68.54% of the companies in the same industry are doing better.
A Quick Ratio of 0.82 indicates that DTM may have some problems paying its short term obligations.
DTM has a Quick ratio of 0.82. This is in the lower half of the industry: DTM underperforms 61.03% of its industry peers.
| 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.
The Earnings Per Share has been growing by 11.26% on average over the past years. This is quite good.
The Revenue has grown by 10.83% in the past year. This is quite good.
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)-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
DTM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.38% yearly.
Based on estimates for the next years, DTM will show a quite strong growth in Revenue. The Revenue will grow by 12.76% on average per year.
EPS Next Y22.44%
EPS Next 2Y16.42%
EPS Next 3Y14.38%
EPS Next 5YN/A
Revenue Next Year23.27%
Revenue Next 2Y15.21%
Revenue Next 3Y12.76%
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.
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
Based on the Price/Earnings ratio of 28.96, the valuation of DTM can be described as expensive.
DTM's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of DTM to the average of the S&P500 Index (26.35), we can say DTM is valued inline with the index average.
A Price/Forward Earnings ratio of 21.79 indicates a rather expensive valuation of DTM.
DTM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, DTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 21.79 |
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 68.08% of the companies listed in the same industry.
DTM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.21 | ||
| EV/EBITDA | 18.54 |
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 14.38% in the coming years.
PEG (NY)1.29
PEG (5Y)2.57
EPS Next 2Y16.42%
EPS Next 3Y14.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, DTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.47, 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 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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 2Y16.42%
EPS Next 3Y14.38%
106.3
+1.05 (+1%)
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 Cap10.80B
Analysts73.68
Price Target109.78 (3.27%)
Short Float %3.47%
Short Ratio3.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
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)2.41%
PT rev (3m)4.27%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0.48%
EPS NY rev (3m)-2.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 21.79 | ||
| P/S | 10.34 | ||
| P/FCF | 24.21 | ||
| P/OCF | 14.04 | ||
| P/B | 2.33 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 18.54 |
EPS(TTM)3.67
EY3.45%
EPS(NY)4.88
Fwd EY4.59%
FCF(TTM)4.39
FCFY4.13%
OCF(TTM)7.57
OCFY7.12%
SpS10.28
BVpS45.69
TBVpS19.28
PEG (NY)1.29
PEG (5Y)2.57
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 | 1.6 |
F-Score5
WACC7.64%
ROIC/WACC0.53
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 Y22.44%
EPS Next 2Y16.42%
EPS Next 3Y14.38%
EPS Next 5YN/A
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.25%
Revenue Next Year23.27%
Revenue Next 2Y15.21%
Revenue Next 3Y12.76%
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%