DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTM - US23345M1071 - Common Stock
122.855 USD
+1.17 (+0.97%)
Overall DTM gets a fundamental rating of 4 out of 10. We evaluated DTM against 207 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
- In the past year DTM was profitable.
- 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 (4.01%) which is in line with its industry peers.
- Looking at the Return On Equity, with a value of 8.57%, DTM is in line with its industry, outperforming 56.52% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.47%, DTM is doing worse than 60.39% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for DTM is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (4.47%) for DTM is above the 3 year average (3.99%), which is a sign of increasing profitability.
| 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
- The Profit Margin of DTM (34.30%) is better than 90.82% of its industry peers.
- In the last couple of years the Profit Margin of DTM has declined.
- DTM's Operating Margin of 48.60% is amongst the best of the industry. DTM outperforms 91.79% of its industry peers.
- DTM's Operating Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DTM is destroying value.
- The number of shares outstanding for DTM has been increased compared to 1 year ago.
- The number of shares outstanding for DTM has been increased compared to 5 years ago.
- The debt/assets ratio for DTM has been reduced compared to a year ago.
2.2 Solvency
- DTM has an Altman-Z score of 1.80. This is a bad value and indicates that DTM is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.80, DTM is in the better half of the industry, outperforming 62.32% of the companies in the same industry.
- 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's Debt to FCF ratio of 7.02 is in line compared to the rest of the industry. DTM outperforms 57.49% of its industry peers.
- A Debt/Equity ratio of 0.71 indicates that DTM is somewhat dependend on debt financing.
- DTM's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. DTM is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.55
WACC8.11%
2.3 Liquidity
- DTM has a Current 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.
- DTM has a worse Current ratio (0.92) than 61.35% 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.
- The Quick ratio of DTM (0.92) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- The earnings per share for DTM have decreased by -3.65% in the last year.
- Measured over the past years, DTM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.26% on average per year.
- Looking at the last year, DTM shows a very strong growth in Revenue. The Revenue has grown by 20.39%.
- The Revenue has been growing by 14.25% on average over the past years. This is quite good.
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 13.42% 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 13.78% on average per year.
EPS Next Y22.93%
EPS Next 2Y17.2%
EPS Next 3Y14.8%
EPS Next 5Y13.42%
Revenue Next Year26.18%
Revenue Next 2Y16.98%
Revenue Next 3Y13.84%
Revenue Next 5Y13.78%
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
- DTM is valuated quite expensively with a Price/Earnings ratio of 31.02.
- DTM's Price/Earnings ratio is a bit more expensive when compared to the industry. DTM is more expensive than 61.84% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. DTM is around the same levels.
- The Price/Forward Earnings ratio is 24.84, which indicates a rather expensive current 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 25.98, DTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 24.84 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, DTM is valued a bit more expensive than 69.08% of the companies in the same industry.
- DTM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.41 | ||
| EV/EBITDA | 19.45 |
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 14.80% in the coming years.
PEG (NY)1.35
PEG (5Y)2.75
EPS Next 2Y17.2%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
- DTM has a Yearly Dividend Yield of 2.70%.
- Compared to an average industry Dividend Yield of 3.73, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 2Y17.2%
EPS Next 3Y14.8%
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.
What is the valuation status for DTM stock?
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.
Can you provide the PE and PB ratios for DTM stock?
The Price/Earnings (PE) ratio for DT MIDSTREAM INC (DTM) is 31.02 and the Price/Book (PB) ratio is 2.66.
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 22.93% in the next year.