DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - NYSE:DTM - US23345M1071 - Common Stock
107.32 USD
-0.02 (-0.02%)
107.32 USD
0 (0%)
DTM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 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.
Each year in the past 5 years DTM has been profitable.
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 3.78%, DTM is in line with its industry, outperforming 54.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.05%, DTM is in line with its industry, outperforming 54.29% of the companies in the same industry.
DTM's Return On Invested Capital of 4.24% is on the low side compared to the rest of the industry. DTM is outperformed by 61.43% of its industry peers.
DTM had an Average Return On Invested Capital over the past 3 years of 3.99%. This is significantly below the industry average of 21.91%.
The last Return On Invested Capital (4.24%) for DTM is above the 3 year average (3.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 8.05% | ||
| ROIC | 4.24% |
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 (33.90%) is better than 88.57% of its industry peers.
DTM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 48.51%, DTM belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
DTM's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.51% | ||
| PM (TTM) | 33.9% | ||
| 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.
DTM has more shares outstanding than it did 1 year ago.
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 1.63, we must say that DTM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.63, DTM perfoms like the industry average, outperforming 58.10% of the companies in the same industry.
The Debt to FCF ratio of DTM is 7.18, which is on the high side as it means it would take DTM, 7.18 years of fcf income to pay off all of its debts.
DTM has a Debt to FCF ratio (7.18) which is in line with its industry peers.
A Debt/Equity ratio of 0.72 indicates that DTM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, DTM is not doing good in the industry: 60.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.52
WACC8.22%
2.3 Liquidity
A Current Ratio of 0.88 indicates that DTM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, DTM is doing worse than 61.90% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that DTM may have some problems paying its short term obligations.
The Quick ratio of DTM (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
DTM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.12%.
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.
DTM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.28%.
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)-10.12%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%6.12%
Revenue 1Y (TTM)15.28%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.64%
3.2 Future
The Earnings Per Share is expected to grow by 9.53% on average over the next years. This is quite good.
Based on estimates for the next years, DTM will show a quite strong growth in Revenue. The Revenue will grow by 13.68% on average per year.
EPS Next Y20.97%
EPS Next 2Y16.35%
EPS Next 3Y14.83%
EPS Next 5Y9.53%
Revenue Next Year24.98%
Revenue Next 2Y16.38%
Revenue Next 3Y13.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
DTM is valuated quite expensively with a Price/Earnings ratio of 28.77.
Based on the Price/Earnings ratio, DTM is valued a bit more expensive than 60.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. DTM is around the same levels.
The Price/Forward Earnings ratio is 22.02, which indicates a rather expensive current valuation of DTM.
Based on the Price/Forward Earnings ratio, DTM is valued a bit more expensive than 60.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.73, DTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 22.02 |
4.2 Price Multiples
DTM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. DTM is more expensive than 68.10% 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 | 23.4 | ||
| EV/EBITDA | 17.96 |
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 14.83% in the coming years.
PEG (NY)1.37
PEG (5Y)2.55
EPS Next 2Y16.35%
EPS Next 3Y14.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, DTM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.00, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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
79.79% of the earnings are spent on dividend by DTM. This is not a sustainable payout ratio.
DP79.79%
EPS Next 2Y16.35%
EPS Next 3Y14.83%
107.32
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners85.78%
Inst Owner ChangeN/A
Ins Owners0.3%
Ins Owner Change12.75%
Market Cap10.90B
Analysts73.68
Price Target111.5 (3.89%)
Short Float %4.12%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend2.83
Dividend Growth(5Y)N/A
DP79.79%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.07%
Min EPS beat(2)-3.67%
Max EPS beat(2)1.53%
EPS beat(4)1
Avg EPS beat(4)-6.33%
Min EPS beat(4)-18.87%
Max EPS beat(4)1.53%
EPS beat(8)5
Avg EPS beat(8)2.44%
EPS beat(12)7
Avg EPS beat(12)0.63%
EPS beat(16)8
Avg EPS beat(16)-0.41%
Revenue beat(2)2
Avg Revenue beat(2)3.29%
Min Revenue beat(2)3.21%
Max Revenue beat(2)3.37%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)3.37%
Revenue beat(8)6
Avg Revenue beat(8)1.29%
Revenue beat(12)8
Avg Revenue beat(12)-0.34%
Revenue beat(16)10
Avg Revenue beat(16)-0.41%
PT rev (1m)0.57%
PT rev (3m)3.95%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)1.53%
EPS NY rev (1m)-1.16%
EPS NY rev (3m)-0.72%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 22.02 | ||
| P/S | 9.83 | ||
| P/FCF | 23.4 | ||
| P/OCF | 13.82 | ||
| P/B | 2.33 | ||
| P/tB | 5.45 | ||
| EV/EBITDA | 17.96 |
EPS(TTM)3.73
EY3.48%
EPS(NY)4.87
Fwd EY4.54%
FCF(TTM)4.59
FCFY4.27%
OCF(TTM)7.77
OCFY7.24%
SpS10.92
BVpS46
TBVpS19.69
PEG (NY)1.37
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.78% | ||
| ROE | 8.05% | ||
| ROCE | 5.59% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 5.92% | ||
| OM | 48.51% | ||
| PM (TTM) | 33.9% | ||
| GM | N/A | ||
| FCFM | 42.02% |
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-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 7.18 | ||
| Debt/EBITDA | 4.25 | ||
| Cap/Depr | 129.2% | ||
| Cap/Sales | 29.13% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 100.13% | ||
| Profit Quality | 123.94% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.63 |
F-Score6
WACC8.22%
ROIC/WACC0.52
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)-10.12%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%6.12%
EPS Next Y20.97%
EPS Next 2Y16.35%
EPS Next 3Y14.83%
EPS Next 5Y9.53%
Revenue 1Y (TTM)15.28%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.64%
Revenue Next Year24.98%
Revenue Next 2Y16.38%
Revenue Next 3Y13.68%
Revenue Next 5YN/A
EBIT growth 1Y8.25%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year96.02%
EBIT Next 3Y30.63%
EBIT Next 5Y21.53%
FCF growth 1Y1403.23%
FCF growth 3Y-1.49%
FCF growth 5Y18.2%
OCF growth 1Y7.35%
OCF growth 3Y10.08%
OCF growth 5Y14.36%