DT Midstream, Inc.
DT Midstream, Inc. Fundamental Analysis
DT Midstream, Inc. (DTM) shows moderate financial fundamentals with a PE ratio of 34.18, profit margin of 34.30%, and ROE of 8.65%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 6.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze DTM's fundamental strength across five key dimensions:
Efficiency Score
WeakDTM struggles to generate sufficient returns from assets.
Valuation Score
WeakDTM trades at a premium to fair value.
Growth Score
ModerateDTM shows steady but slowing expansion.
Financial Health Score
ModerateDTM shows balanced financial health with some risks.
Profitability Score
ModerateDTM maintains healthy but balanced margins.
Key Financial Metrics
Is DTM Expensive or Cheap?
P/E Ratio
DTM trades at 34.18 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DTM's PEG of 5.84 indicates potential overvaluation.
Price to Book
The market values DT Midstream, Inc. at 2.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.75 times EBITDA. This signals the market has high growth expectations.
How Well Does DTM Make Money?
Net Profit Margin
For every $100 in sales, DT Midstream, Inc. keeps $34.30 as profit after all expenses.
Operating Margin
Core operations generate 48.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.65 in profit for every $100 of shareholder equity.
ROA
DT Midstream, Inc. generates $4.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DT Midstream, Inc. generates strong operating cash flow of $873.64M, reflecting robust business health.
Free Cash Flow
DT Midstream, Inc. generates strong free cash flow of $640.47M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.30 in free cash annually.
FCF Yield
DTM converts 4.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.72
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How DTM Stacks Against Its Sector Peers
| Metric | DTM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.18 | 20.19 | Worse (Expensive) |
| ROE | 8.65% | 1019.00% | Weak |
| Net Margin | 34.30% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.72 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.92 | 4.60 | Weak Liquidity |
| ROA | 4.01% | -11655350.00% (disorted) | Weak |
DTM outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DT Midstream, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
92.85%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
71.93%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
93.84%
Industry Style: Cyclical, Value, Commodity
High Growth