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DTE Energy Company (DTE)
:DTE
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DTE Energy
(NYSE:DTE)77Outperform
Positive Factors
Growth Prospects
DTE shares have outperformed peers by over 400 basis points due to better-than-expected outlook and additional upside potential.
Regulatory and Tax Environment
Analyst recommends upgrading DTE to Buy due to the stock's mis-pricing of the company's top quartile Michigan regulatory environment and exposure to tax credits.
Negative Factors
Regulatory Challenges
Regulatory challenges now a material concern after disappointing successive rate case orders; Michigan premium status in question.
DTE Energy (DTE) vs. S&P 500 (SPY)
Market Cap
$27.34B
Dividend Yield3.07%
Average Volume (3M)1.27M
Price to Earnings (P/E)19.5
Beta (1Y)0.30
Revenue Growth-1.13%
EPS Growth0.16%
CountryUS
Employees9,500
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)6.77
Shares Outstanding207,242,390
10 Day Avg. Volume1,048,555
30 Day Avg. Volume1,268,108
Financial Highlights & Ratios
PEG Ratio122.08
Price to Book (P/B)N/A
Price to Sales (P/S)2.25
Price to Cash Flow (P/CF)6.50
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$137.00Price Target Upside3.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
DTE Energy Business Overview & Revenue Model
Company DescriptionDTE Energy (DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. It primarily operates in two segments: Electric and Gas. The Electric segment generates, purchases, distributes, and sells electricity to approximately 2.3 million customers in southeastern Michigan. The Gas segment is engaged in the purchase, storage, transportation, distribution, and sale of natural gas to about 1.3 million customers in Michigan. DTE Energy also engages in energy trading and operates non-utility energy businesses focused on industrial energy services, renewable natural gas, and power and industrial projects.
How the Company Makes MoneyDTE Energy makes money primarily through regulated utility operations in electricity and natural gas. The Electric segment generates revenue by charging customers for electricity usage, which includes generation, transmission, and distribution services. It earns regulated returns on its investments in infrastructure and operational costs. The Gas segment earns revenue by charging customers for natural gas distribution, including costs associated with the purchase and delivery of natural gas. Additionally, DTE Energy generates income from its non-utility operations, which include energy trading, renewable energy projects, and industrial energy services, adding further diversification to its revenue streams. Strategic partnerships and investments in renewable energy and technology also contribute to their earnings.
DTE Energy Financial Statement Overview
Summary
DTE Energy demonstrates robust profitability and operational efficiency, with stable margins and returns. While the company faces challenges in revenue growth and cash flow stability, its balance sheet shows adequate leverage management. Overall, the company maintains a solid financial footing, typical of a regulated utility, but should focus on improving cash flow consistency.Income Statement
DTE Energy shows a solid performance in terms of profitability with a consistent EBIT and EBITDA margin over recent years, indicating effective cost management. However, the revenue growth rate is slightly negative in the most recent year, suggesting potential challenges in revenue expansion. Net profit margin remains stable, reflecting sound financial health.75
Positive
Balance Sheet
The company's balance sheet indicates a moderately high debt-to-equity ratio, typical for regulated utilities but could pose risks if interest rates rise. The equity ratio is relatively stable, showing balanced leverage, while the return on equity is respectable, suggesting efficient use of equity capital.70
Positive
Cash Flow
DTE Energy's cash flow analysis reveals fluctuations in free cash flow, with recent improvements. The operating cash flow to net income ratio is healthy, indicating good operational performance. However, historical negative free cash flow highlights challenges in investment and financing activities, which could impact future liquidity.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 12.46B | 12.74B | 19.23B | 14.96B | 12.18B | Gross Profit |
| 4.34B | 4.33B | 3.67B | 3.34B | 3.87B | EBIT |
| 2.09B | 2.24B | 1.75B | 1.50B | 1.99B | EBITDA |
| 4.05B | 3.96B | 3.30B | 2.72B | 3.01B | Net Income Common Stockholders |
| 1.40B | 1.40B | 1.08B | 907.00M | 1.37B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 24.00M | 26.00M | 33.00M | 28.00M | 514.00M | Total Assets |
| 48.85B | 44.76B | 42.68B | 39.72B | 45.50B | Total Debt |
| 2.57B | 20.97B | 19.24B | 18.25B | 19.65B | Net Debt |
| 2.57B | 20.94B | 19.21B | 18.22B | 19.14B | Total Liabilities |
| 37.14B | 33.70B | 32.28B | 31.01B | 32.91B | Stockholders Equity |
| 11.70B | 11.05B | 10.40B | 8.71B | 12.43B |
| Cash Flow | Free Cash Flow | |||
| 2.82B | -714.00M | -1.40B | -705.00M | -160.00M | Operating Cash Flow |
| 2.82B | 3.22B | 1.98B | 3.07B | 3.70B | Investing Cash Flow |
| -3.74B | -4.09B | -3.43B | -3.86B | -4.07B | Financing Cash Flow |
| 953.00M | 883.00M | 1.46B | 271.00M | 796.00M |
DTE Energy Technical Analysis
Positive
131.94
Price Trends
123.63
Positive
123.05
Positive
119.81
Positive
Market Momentum
3.13
Negative
61.82
Neutral
79.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTE, the sentiment is Positive. The current price of 131.94 is above the 20-day moving average (MA) of 128.62, above the 50-day MA of 123.63, and above the 200-day MA of 119.81, indicating a bullish trend. The MACD of 3.13 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 79.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTE.
DTE Energy Risk Analysis
DTE Energy disclosed 28 risk factors in its most recent earnings report. DTE Energy reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DTE Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $21.77B | 21.89 | 8.80% | 2.82% | 0.71% | 11.07% | |
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
77 Outperform | $27.34B | 19.49 | 12.00% | 3.07% | -1.13% | 0.16% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
67 Neutral | $145.74B | 21.00 | 9.07% | 2.95% | 26.91% | -6.43% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
DTE
DTE Energy
131.94
24.10
22.35%
AEP
American Electric Power
105.24
24.43
30.23%
CMS
CMS Energy
72.87
14.43
24.69%
DUK
Duke Energy
116.41
25.84
28.53%
NEE
NextEra Energy
70.85
16.84
31.18%
SO
Southern Co
89.89
23.61
35.62%
DTE Energy Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 6.24% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for DTE Energy, with strong financial performance in 2024, significant investments in cleaner energy and reliability, and promising opportunities in data center growth that could drive future earnings. Despite some challenges in the gas segment and variability in Vantage, the company's strategic focus and financial stability suggest a robust growth trajectory.Highlights
Successful 2024 Financial Performance
DTE Energy achieved operating EPS of $6.83 per share, reaching the high end of their guidance and providing over 9% growth over the 2023 original guidance midpoint.
Significant Investment in Clean Energy
DTE plans to invest $30 billion over the next five years, a $5 billion increase from the previous plan, primarily for reliability improvements and transitioning to cleaner generation.
Improved Reliability
DTE Electric saw a 70% reduction in the duration of outages in 2024 due to grid improvements and less storm activity.
Data Center Growth Potential
DTE has signed agreements for approximately 2,100 megawatts of potential new load from data centers, with further discussions underway.
Strong Credit and Balance Sheet
DTE maintains a strong balance sheet with minimal equity issuances planned through 2027, targeting an FFO to debt ratio of 15% to 16%.
Lowlights
DTE Gas Earnings Decline
Operating earnings for DTE Gas were $263 million, $31 million lower than 2023, driven by warmer weather and higher rate base and O&M costs.
Vantage Segment Volatility
DTE Vantage saw some variability in earnings due to timing and one-time items from 2023, with a reliance on investment tax credits influencing results.
Company Guidance
In the DTE Energy Company Q4 2024 earnings call, the company provided robust guidance for the future, outlining their strategic plan for substantial growth. The guidance highlighted a target for operating earnings per share (EPS) growth of 6% to 8% through 2029, with a focus on achieving at least the upper end of this range from 2025 to 2027. The 2025 operating EPS guidance is set between $7.09 and $7.23 per share, representing a 7% growth from the 2024 midpoint. The company plans to invest $30 billion over the next five years, with a $5 billion increase primarily aimed at enhancing grid reliability and transitioning to cleaner energy. This investment will support Michigan's clean energy legislation and the company's voluntary renewables program. Additionally, DTE Energy anticipates tax credits, specifically the 45Z credits, to bolster their growth targets and provide financial flexibility. The call emphasized DTE's commitment to maintaining customer affordability while achieving these ambitious plans.DTE Energy Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
DTE Energy Sets 2025 Incentive Plans for Executives
Neutral
Feb 14, 2025
On February 10 and 11, 2025, DTE Energy’s Organization and Compensation Committee approved performance measures for the 2025 Annual Incentive Plan (AIP) and the 2027 Long-Term Incentive Plan (LTIP) for its executive officers. The AIP focuses on operational earnings, cash flow, customer satisfaction, employee engagement, safety, and utility excellence, with awards based on various performance metrics. The LTIP, aimed at fostering long-term growth and aligning with shareholder interests, includes stock-based compensation tied to shareholder returns and earnings growth, with performance evaluated from 2025 to 2027.
Executive/Board Changes
DTE Energy Appoints Casey Santos to Board of Directors
Positive
Feb 7, 2025
On February 6, 2025, DTE Energy appointed Casey Santos to its board of directors. Santos, who is currently the Chief Technology Officer at Caliber Collision Centers, brings over 25 years of experience in technology leadership roles across various industries. Her expertise in innovation, digital transformation, artificial intelligence, and cybersecurity is expected to significantly enhance DTE’s efforts in building a future-ready energy grid. Jerry Norcia, CEO of DTE Energy, emphasized that Santos’s appointment aligns with the company’s mission to provide safe, reliable, and clean energy solutions. Santos’s extensive background, including her previous roles at Asurion and NASA, and her accolades in the technology sector, underscore her capacity to contribute to DTE’s strategic goals.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.