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Dte Energy Company (DTE)
NYSE:DTE
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DTE Energy
(NYSE:DTE)
72Outperform
Positive Factors
Earnings
Favorable weather conditions are expected to positively impact earnings compared to the previous year.
Financial Performance
DTE shares have outperformed peers by over 400 basis points due to better-than-expected outlook and additional upside potential.
Growth Prospects
Management expects to be at the top end of growth targets through 2027, supported by contributions from 45Z tax credits.
Negative Factors
Operational Expenses
Higher operating expenses for electric and gas are expected to have a negative impact on earnings.
Regulatory Challenges
Regulatory challenges now a material concern after disappointing successive rate case orders; Michigan premium status in question.
Tariff-related Costs
The company's Trenton Battery Energy Storage Center could face exposure due to tariff-related costs.
DTE Energy (DTE) vs. S&P 500 (SPY)
Market Cap
$27.54B
Dividend Yield3.18%
Average Volume (3M)1.64M
Price to Earnings (P/E)17.9
Beta (1Y)0.22
Revenue Growth11.16%
EPS Growth20.94%
CountryUS
Employees4,750
SectorUtilities
Sector Strength78
IndustryRegulated Electric
Share Statistics
EPS (TTM)2.10
Shares Outstanding207,515,690
10 Day Avg. Volume1,386,080
30 Day Avg. Volume1,636,973
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)2.36
Price to Sales (P/S)0.00
P/FCF Ratio-43.32
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit4.60
Enterprise Value/Ebitda3.14
Forecast
1Y Price Target
$144.40Price Target Upside5.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
DTE Energy Business Overview & Revenue Model
Company DescriptionDTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.3 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets. This segment owns and operates approximately 698 distribution substations and 449,800 line transformers. The company's Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity. This segment has approximately 20,000 miles of distribution mains; 1,304,000 service pipelines; and 1,305,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. The company's Power and Industrial Projects segment offers metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam and chilled water production, and wastewater treatment services, as well as supplies compressed air to industrial customers. Its Energy Trading segment engages in power, natural gas, and environmental marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. The company was founded in 1903 and is headquartered in Detroit, Michigan.
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 shows strong profitability and positive revenue growth, indicating operational efficiency. However, high leverage and negative free cash flow pose potential risks.Income Statement
DTE Energy has demonstrated a solid financial performance with a strong gross profit margin of 82.3% and a respectable net profit margin of 11.3% for the TTM period. Revenue growth is positive at 9.6% compared to the previous year, indicating a healthy expansion. The EBIT and EBITDA margins are 16.8% and 30.9% respectively, which are strong indicators of operational efficiency. Overall, the income statement reflects stability and profitability, although the net profit margin suggests there is room for improvement.75
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 1.97, which suggests potential leverage risk. However, the return on equity is robust at 12.9%, indicating effective use of shareholder funds. The equity ratio is 24.1%, which is moderate but suggests a reliance on debt financing. The balance sheet demonstrates solid asset management but highlights some potential risks associated with high leverage.65
Positive
Cash Flow
The cash flow statement reveals challenges, with a negative free cash flow growth rate and a negative free cash flow for the TTM period, indicating strain in generating free cash after investments. The operating cash flow to net income ratio is 2.38, which is strong and suggests that the company is generating adequate cash from operations relative to its net income. However, the negative free cash flow to net income ratio indicates a need for improved cash management.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 13.66B | 12.46B | 12.74B | 19.23B | 14.96B | 12.18B | Gross Profit |
| 11.23B | 4.34B | 4.33B | 3.67B | 3.34B | 3.87B | EBIT |
| 2.30B | 2.09B | 2.24B | 1.75B | 1.50B | 1.99B | EBITDA |
| 4.22B | 4.05B | 3.96B | 3.30B | 2.72B | 3.01B | Net Income Common Stockholders |
| 1.54B | 1.40B | 1.40B | 1.08B | 907.00M | 1.37B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 33.00M | 24.00M | 26.00M | 33.00M | 28.00M | 514.00M | Total Assets |
| 49.55B | 48.85B | 44.76B | 42.68B | 39.72B | 45.50B | Total Debt |
| 23.44B | 23.24B | 20.97B | 19.24B | 18.25B | 19.65B | Net Debt |
| 23.40B | 23.22B | 20.94B | 19.21B | 18.22B | 19.14B | Total Liabilities |
| 37.63B | 37.14B | 33.70B | 32.28B | 31.01B | 32.91B | Stockholders Equity |
| 11.92B | 11.70B | 11.05B | 10.40B | 8.71B | 12.43B |
| Cash Flow | Free Cash Flow | ||||
| -652.00M | -824.00M | -714.00M | -1.40B | -705.00M | -160.00M | Operating Cash Flow |
| 3.65B | 3.67B | 3.22B | 1.98B | 3.07B | 3.70B | Investing Cash Flow |
| -4.32B | -4.95B | -4.09B | -3.43B | -3.86B | -4.07B | Financing Cash Flow |
| 423.00M | 1.34B | 883.00M | 1.46B | 271.00M | 796.00M |
DTE Energy Technical Analysis
Positive
136.30
Price Trends
134.32
Positive
128.62
Positive
124.97
Positive
Market Momentum
0.29
Positive
54.12
Neutral
37.25
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 136.3 is above the 20-day moving average (MA) of 135.52, above the 50-day MA of 134.32, and above the 200-day MA of 124.97, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 37.25 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $32.63B | 19.96 | 12.96% | 3.32% | 4.42% | 11.98% | |
74 Outperform | $25.68B | 21.08 | 10.23% | 2.86% | 8.96% | 3.75% | |
72 Outperform | $27.54B | 17.92 | 13.28% | 3.18% | 11.16% | 20.94% | |
72 Outperform | $24.78B | 25.03 | 7.00% | 3.12% | 5.62% | 30.02% | |
70 Neutral | $23.74B | 21.89 | 8.69% | 4.13% | 7.92% | 1.54% | |
67 Neutral | $23.87B | 24.59 | 9.22% | 2.27% | 4.76% | 4.08% | |
63 Neutral | $8.34B | 9.99 | 4.83% | 4.38% | 3.69% | -13.85% |
* Utilities Sector Average
Performance Comparison
DTE
DTE Energy
136.30
23.64
20.98%
AEE
Ameren
96.82
24.43
33.75%
CNP
Centerpoint Energy
37.23
7.95
27.15%
FE
FirstEnergy
42.44
4.02
10.46%
PPL
PPL
34.42
5.79
20.22%
WEC
WEC Energy Group
104.91
22.37
27.10%
DTE Energy Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: -0.51%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
DTE Energy's earnings call reflects a strong start to 2025 with significant improvements in reliability, financial performance, and economic development initiatives. While there are minor challenges related to tariffs and regulatory processes, the overall outlook remains positive with data center growth and strategic investments.Q1-2025 Updates
Positive Updates
Strong Start to 2025
DTE Energy is well positioned to meet their targets for 2025, with a strong start to the year and achievements in employee engagement recognized by the Gallup organization.
Significant Reliability Improvements
Investments in grid reliability have resulted in a 70% improvement in customer outage time in 2024 and an additional 60% improvement year-to-date versus last year.
Economic Development and Job Creation
DTE invested $3.3 billion with Michigan businesses in 2024, creating and sustaining over 14,000 jobs, with $1 billion invested with diverse suppliers and companies based in Detroit.
Positive Financial Performance
Operating earnings for Q1 2025 were $436 million, translating to $2.10 per share, positioning the company to achieve the high end of its guidance for the year.
Data Center Opportunities
Nonbinding agreements for 2,100 megawatts with data centers and discussions with additional opportunities provide potential upside to the plan.
Negative Updates
Tariff Exposure
While manageable, there is a 1% to 2% tariff exposure risk to the capital plan, although mitigated by domestic supplier relationships.
Timing of Tax Credits
Significant impact from timing of taxes at DTE Electric related to investment tax credits on solar projects, affecting quarter-over-quarter earnings comparison.
Regulatory Challenges
The expansion of the IRM and the proposed rate case filing will be subject to regulatory approval, with potential implications for capital planning.
Company Guidance
During the DTE Energy Q1 2025 earnings call, the company provided several key metrics and guidance. DTE Energy plans to invest $30 billion over five years, with $24 billion allocated to DTE Electric to improve reliability and transition to cleaner energy. The company aims to reduce power outages by 30% and cut outage times in half over the next five years, with significant progress already made in 2024. DTE's 2025 operating EPS guidance is set at $7.9 to $7.23, with a midpoint of $7.16 per share, marking a 7% increase over the 2024 guidance midpoint. The long-term EPS growth target remains at 6% to 8%. DTE also reported a 70% improvement in outage times in 2024, with an additional 60% improvement year-to-date compared to last year. Furthermore, the company has executed agreements for 2,100 megawatts of data center projects, providing additional growth opportunities. DTE's renewable energy investments continue, with plans to build an average of 800 megawatts of renewable energy annually over the next five years. The company's comprehensive strategy includes enhancing grid reliability, supporting Michigan's economy, and maintaining strong financial health with a manageable tariff exposure of 1% to 2% of the capital plan.DTE Energy Corporate Events
Executive/Board ChangesShareholder Meetings
DTE Energy Shareholders Approve 2025 Incentive Plan
Neutral
May 14, 2025
At the DTE Energy Annual Meeting held on May 8, 2025, shareholders approved the 2025 Long-Term Incentive Plan and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the year. Additionally, the election of all director nominees was confirmed, and the executive compensation package was approved. However, a proposal to eliminate the holding period for shares required to call a special shareholder meeting was not approved.
The most recent analyst rating on (DTE) stock is a Buy with a $137.00 price target. To see the full list of analyst forecasts on DTE Energy stock, see the DTE Stock Forecast page.
Spark’s Take on DTE Stock
According to Spark, TipRanks’ AI Analyst, DTE is a Neutral.
DTE Energy demonstrates robust financial performance with strong revenue growth and profitability. While high leverage and negative free cash flow are concerns, the company’s strategic investments in reliability and clean energy provide a positive outlook. The valuation is reasonable, and recent earnings call highlights support a strong growth trajectory.
To see Spark’s full report on DTE stock, click here.
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.