DTE Energy Company
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.4 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress.
Did you know?
Pays a 2.83% dividend yield.
Current Price
$148.04
+0.63%GoodMoat Value
$114.45
22.7% overvaluedProfile
Valuation (TTM)
Market Cap$30.75B
P/E21.03
EV$55.45B
P/B2.50
Shares Out207.68M
P/Sales1.94
Revenue$15.81B
EV/EBITDA12.74
DTE Energy Company (DTE) Stock Analysis
GoodMoat Analysis
DTE Energy is a regulated electric utility with a stable, regulated moat but significant financial and valuation concerns. It fails the initial quality gate due to negative free cash flow and high debt, and trades at a significant premium to the GoodMoat target price.
Read full analysis
DTE Energy Company is a regulated electric utility operating in Michigan, providing a classic example of a 'Regulatory Barrier' moat. Its operations are government-regulated, granting it a monopoly in its service territories with guaranteed returns on its capital investments. This aligns with Moat Criterion #5. However, this is its primary durable advantage; other moat criteria like network effects or proprietary technology are not applicable. Applying the Decision Framework, the company faces immediate challenges in the Quality Indicators section. While it has GAAP profitability, its Free Cash Flow Yield is negative (-3.3%), and its Debt/Equity ratio of 2.14 is high, indicating a leveraged balance sheet. These are significant weaknesses that would likely result in a low Quality rating. Consequently, the stock would fail the 'Moat & Quality Gate' (Step 1) for further valuation analysis, as the framework requires predominantly 'Strong' quality ratings to proceed. On valuation, the current price of $143.45 is 25% above the GoodMoat target of $114.45, suggesting an unfavourable margin of safety. The P/E of 20.4 is also high for a utility with modest growth prospects beyond the recent revenue surge. For a value investor, the combination of weak financial quality indicators and a premium valuation makes this an unfavourable candidate for deeper investigation without a substantial change in its financial profile or price.
Market Cap$30.75B
Current Price$148.04
P/E Ratio21.03
Forward P/E—
PEG Ratio0.80
EPS$7.03
Book Value$59.24
P/B Ratio2.50
DTE Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 26.0B
Revenue
12.2B
FY19
11.4B
FY20
15.0B
FY21
19.2B
FY22
12.7B
FY23
12.5B
FY24
15.8B
FY25
Net Income
1.2B
FY19
1.4B
FY20
907M
FY21
1.1B
FY22
1.4B
FY23
1.4B
FY24
1.5B
FY25
DTE 52-Week Range
$123.27
$149.34
50-Day MA: $142.32200-Day MA: $135.53
Did you know?
Profit margin stands at 9.2%.
DTE Energy Company (DTE) Financial Summary
DTE Energy Company (DTE) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $148.04 with a market capitalization of $30.75B.
Key valuation metrics include a P/E ratio of 21.03, price-to-book ratio of 2.50, and EPS of $7.03. The company reports a profit margin of 9.2% and return on equity of 11.9%.
DTE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $30.75B |
| P/E Ratio | 21.03 |
| EPS | $7.03 |
| P/B Ratio | 2.50 |
| P/S Ratio | 1.94 |
| EV/EBITDA | 12.74 |
| Dividend Yield | 2.83% |
| Profit Margin | 9.2% |
| Return on Equity | 11.9% |
| Debt/Equity | 2.14 |
DTE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $12.17B | $1.17B |
| FY20 | $11.42B | $1.37B |
| FY21 | $14.96B | $907.00M |
| FY22 | $19.23B | $1.08B |
| FY23 | $12.74B | $1.40B |
| FY24 | $12.46B | $1.40B |
| FY25 | $15.81B | $1.46B |
DTE Energy Company (DTE) Valuation
Based on GoodMoat's DCF model, DTE Energy Company has a fair value estimate of $114.45. At the current price of $148.04, the stock appears 29.4% overvalued relative to our intrinsic value estimate.
DTE Quality Indicators
DTE Energy Company maintains a profit margin of 9.2% and an operating margin of 15.0%. Return on equity stands at 11.9%. The current ratio is 0.80. Debt-to-equity ratio is 2.14.
About DTE Energy Company
DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.4 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress.
DTE Free Cash Flow
DTE Energy Company generated $-988.00M in trailing twelve-month free cash flow, representing an FCF yield of -3.21%. This low FCF yield may reflect heavy reinvestment or growth spending.
DTE Shares Outstanding
DTE Energy Company has 0.21 billion shares outstanding at a share price of $148.04, giving it a market capitalization of $30.75B.