DT MIDSTREAM INC (DTM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DTM - US23345M1071 - Common Stock
121 USD
+1.48 (+1.24%)
121 USD
0 (0%)
Overall DTM gets a fundamental rating of 4 out of 10. We evaluated DTM against 208 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of DTM while its profitability can be described as average. While showing a medium growth rate, DTM is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
DTM had positive earnings in the past year.
In the past year DTM had a positive cash flow from operations.
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 4.01%, DTM is in line with its industry, outperforming 57.42% of the companies in the same industry.
The Return On Equity of DTM (8.57%) is comparable to the rest of the industry.
DTM's Return On Invested Capital of 4.47% is on the low side compared to the rest of the industry. DTM is outperformed by 61.72% 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 20.87%.
The 3 year average ROIC (3.99%) for DTM is below the current ROIC(4.47%), indicating increased profibility in the last year.
| 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
DTM's Profit Margin of 34.30% is amongst the best of the industry. DTM outperforms 90.91% of its industry peers.
DTM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 48.60%, DTM belongs to the top of the industry, outperforming 91.39% 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 | 48.6% | ||
| 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.
DTM has more shares outstanding than it did 1 year ago.
The number of shares outstanding for DTM has been increased compared to 5 years ago.
DTM has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that DTM is in the distress zone and has some risk of bankruptcy.
DTM's Altman-Z score of 1.79 is fine compared to the rest of the industry. DTM outperforms 63.16% of its industry peers.
DTM has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as DTM would need 7.02 years to pay back of 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 58.37% 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 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.56
WACC7.99%
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.
Looking at the Current ratio, with a value of 0.92, DTM is doing worse than 60.77% of the companies in the same industry.
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.
DTM has a Quick ratio (0.92) which 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
DTM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 20.39%.
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)-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 Y22.46%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
EPS Next 5Y13.42%
Revenue Next Year27.29%
Revenue Next 2Y17.63%
Revenue Next 3Y14.4%
Revenue Next 5Y13.78%
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.
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
With a Price/Earnings ratio of 30.56, DTM can be considered very expensive at the moment.
Based on the Price/Earnings ratio, DTM is valued a bit more expensive than 62.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of DTM to the average of the S&P500 Index (26.56), we can say DTM is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.48, the valuation of DTM can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as DTM.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, DTM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 24.48 |
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 69.86% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DTM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.01 | ||
| EV/EBITDA | 19.36 |
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 14.65% in the coming years.
PEG (NY)1.36
PEG (5Y)2.71
EPS Next 2Y17.18%
EPS Next 3Y14.65%
5. Dividend
5.1 Amount
DTM has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
DTM's Dividend Yield is comparable with the industry average which is at 3.83.
DTM's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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
77.42% of the earnings are spent on dividend by DTM. This is not a sustainable payout ratio.
DP77.42%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
121
+1.48 (+1.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners89.1%
Inst Owner ChangeN/A
Ins Owners0.35%
Ins Owner Change12.03%
Market Cap12.30B
Revenue(TTM)1.18B
Net Income(TTM)403.00M
Analysts75
Price Target120.17 (-0.69%)
Short Float %4.01%
Short Ratio4.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend2.83
Dividend Growth(5Y)N/A
DP77.42%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.38%
Min EPS beat(2)1.53%
Max EPS beat(2)5.24%
EPS beat(4)2
Avg EPS beat(4)-3.94%
Min EPS beat(4)-18.87%
Max EPS beat(4)5.24%
EPS beat(8)5
Avg EPS beat(8)2.7%
EPS beat(12)7
Avg EPS beat(12)0.89%
EPS beat(16)9
Avg EPS beat(16)0.13%
Revenue beat(2)2
Avg Revenue beat(2)2.26%
Min Revenue beat(2)1.31%
Max Revenue beat(2)3.21%
Revenue beat(4)3
Avg Revenue beat(4)1.21%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)3.37%
Revenue beat(8)6
Avg Revenue beat(8)1.21%
Revenue beat(12)8
Avg Revenue beat(12)-0.43%
Revenue beat(16)11
Avg Revenue beat(16)-0.33%
PT rev (1m)3.47%
PT rev (3m)7.77%
EPS NQ rev (1m)2.18%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)0.92%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.98%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.56 | ||
| Fwd PE | 24.48 | ||
| P/S | 10.47 | ||
| P/FCF | 26.01 | ||
| P/OCF | 14.34 | ||
| P/B | 2.62 | ||
| P/tB | 6.02 | ||
| EV/EBITDA | 19.36 |
EPS(TTM)3.96
EY3.27%
EPS(NY)4.94
Fwd EY4.09%
FCF(TTM)4.65
FCFY3.84%
OCF(TTM)8.44
OCFY6.97%
SpS11.56
BVpS46.25
TBVpS20.1
PEG (NY)1.36
PEG (5Y)2.71
Graham Number64.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.01% | ||
| ROE | 8.57% | ||
| ROCE | 5.88% | ||
| ROIC | 4.47% | ||
| ROICexc | 4.51% | ||
| ROICexgc | 6.24% | ||
| OM | 48.6% | ||
| PM (TTM) | 34.3% | ||
| GM | N/A | ||
| FCFM | 40.26% |
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%
ROICexgc growth 3Y-3.85%
ROICexgc 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-Score4
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 4.14 | ||
| Cap/Depr | 166.67% | ||
| Cap/Sales | 32.77% | ||
| Interest Coverage | 4.23 | ||
| Cash Conversion | 106.98% | ||
| Profit Quality | 117.37% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 | ||
| Altman-Z | 1.79 |
F-Score4
WACC7.99%
ROIC/WACC0.56
Cap/Depr(3y)263.49%
Cap/Depr(5y)243.12%
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)-3.65%
EPS 3Y4.31%
EPS 5Y11.26%
EPS Q2Q%25.56%
EPS Next Y22.46%
EPS Next 2Y17.18%
EPS Next 3Y14.65%
EPS Next 5Y13.42%
Revenue 1Y (TTM)20.39%
Revenue growth 3Y5.31%
Revenue growth 5Y14.25%
Sales Q2Q%26.61%
Revenue Next Year27.29%
Revenue Next 2Y17.63%
Revenue Next 3Y14.4%
Revenue Next 5Y13.78%
EBIT growth 1Y15.12%
EBIT growth 3Y5.28%
EBIT growth 5Y13.29%
EBIT Next Year99.67%
EBIT Next 3Y31.71%
EBIT Next 5Y22.13%
FCF growth 1Y2250%
FCF growth 3Y-1.49%
FCF growth 5Y18.2%
OCF growth 1Y12.16%
OCF growth 3Y10.08%
OCF growth 5Y14.36%
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.
Can you provide the valuation status for DT MIDSTREAM INC?
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.
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 22.46% in the next year.
How sustainable is the dividend of DT MIDSTREAM INC (DTM) stock?
The dividend rating of DT MIDSTREAM INC (DTM) is 3 / 10 and the dividend payout ratio is 77.42%.