DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
NYSE:DTM - New York Stock Exchange, Inc. - US23345M1071 - Common Stock - Currency: USD
Overall DTM gets a fundamental rating of 4 out of 10. We evaluated DTM 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 quite expensive at the moment. 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.
In the past 5 years DTM has always been profitable.
In the past 5 years DTM always reported a positive cash flow from operatings.
1.2 Ratios
DTM has a Return On Assets of 3.67%. This is comparable to the rest of the industry: DTM outperforms 51.64% of its industry peers.
Looking at the Return On Equity, with a value of 7.86%, DTM is in line with its industry, outperforming 49.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.05%, DTM is doing worse than 63.85% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DTM is significantly below the industry average of 25.87%.
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 Profit Margin of 34.96%. This is amongst the best in the industry. DTM outperforms 87.79% of its industry peers.
In the last couple of years the Profit Margin of DTM has declined.
The Operating Margin of DTM (49.14%) is better than 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
DTM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DTM has more shares outstanding
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 1.55. This is a bad value and indicates that DTM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DTM (1.55) is comparable to the rest of the industry.
The Debt to FCF ratio of DTM is 7.59, which is on the high side as it means it would take DTM, 7.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.59, DTM is in line with its industry, outperforming 57.28% of the companies in the same industry.
A Debt/Equity ratio of 0.73 indicates that DTM is somewhat dependend on debt financing.
DTM has a worse Debt to Equity ratio (0.73) than 63.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.42
WACC9.7%
2.3 Liquidity
DTM has a Current Ratio of 0.82. 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 (0.82) than 67.61% of its industry peers.
A Quick Ratio of 0.82 indicates that DTM may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, DTM is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
| 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.
Looking at the last year, DTM shows a quite strong growth in Revenue. The Revenue has grown by 10.83% in the last year.
DTM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.25% yearly.
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
Based on estimates for the next years, DTM will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.90% on average per year.
DTM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.70% yearly.
EPS Next Y21.85%
EPS Next 2Y16.05%
EPS Next 3Y13.9%
EPS Next 5YN/A
Revenue Next Year21.55%
Revenue Next 2Y14.15%
Revenue Next 3Y11.7%
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 28.36, the valuation of DTM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of DTM indicates a slightly more expensive valuation: DTM is more expensive than 61.03% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.82. DTM is around the same levels.
Based on the Price/Forward Earnings ratio of 21.47, the valuation of DTM can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DTM indicates a slightly more expensive valuation: DTM is more expensive than 60.56% of the companies listed in the same industry.
DTM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.36 | ||
| Fwd PE | 21.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DTM is valued a bit more expensive than 67.14% of the companies 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 | 23.71 | ||
| EV/EBITDA | 17.98 |
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 13.90% in the coming years.
PEG (NY)1.3
PEG (5Y)2.52
EPS Next 2Y16.05%
EPS Next 3Y13.9%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 3.04%.
DTM's Dividend Yield is comparable with the industry average which is at 6.84.
DTM's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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 2Y16.05%
EPS Next 3Y13.9%
104.07
+1.98 (+1.94%)
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 Change39.77%
Market Cap10.57B
Analysts73.68
Price Target107.19 (3%)
Short Float %2.67%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)-0.38%
PT rev (3m)1.01%
EPS NQ rev (1m)-2.84%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)-3.51%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)-0.83%
Revenue NQ rev (3m)-1.6%
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.36 | ||
| Fwd PE | 21.47 | ||
| P/S | 10.13 | ||
| P/FCF | 23.71 | ||
| P/OCF | 13.75 | ||
| P/B | 2.28 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 17.98 |
EPS(TTM)3.67
EY3.53%
EPS(NY)4.85
Fwd EY4.66%
FCF(TTM)4.39
FCFY4.22%
OCF(TTM)7.57
OCFY7.27%
SpS10.28
BVpS45.69
TBVpS19.28
PEG (NY)1.3
PEG (5Y)2.52
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 | 1.55 |
F-Score5
WACC9.7%
ROIC/WACC0.42
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 Y21.85%
EPS Next 2Y16.05%
EPS Next 3Y13.9%
EPS Next 5YN/A
Revenue 1Y (TTM)10.83%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.25%
Revenue Next Year21.55%
Revenue Next 2Y14.15%
Revenue Next 3Y11.7%
Revenue Next 5YN/A
EBIT growth 1Y6.65%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year100.01%
EBIT Next 3Y31.3%
EBIT Next 5Y21.03%
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%