DTE Energy (DTE) AI Stock Analysis

• Market Cap: $29.64B
• Dividend Yield: 3.45%
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.10
• Revenue Growth: 19.42%
• EPS Growth: -9.68%
• Country: US
• Employees: 4,750
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.65
• Shares Outstanding: 207,803,760
• 10 Day Avg. Volume: 1,585,790
• 30 Day Avg. Volume: 1,627,834
• PEG Ratio: 4.42
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 9.82
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 5.52
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $153.00
• Price Target Upside: 5.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $151.00 ▲(4.12% Upside)

The score is held back primarily by weaker financial quality signals—high leverage (based on 2021–2024) and historically negative free cash flow from heavy capital needs—plus added legal/cost uncertainty from the Clean Air Act penalty. Offsetting these are strong technical momentum (price above key moving averages with positive MACD) and a constructive earnings outlook with 6%–8% EPS growth guidance and meaningful data-center upside, while valuation is reasonable but not cheap given the 20.5 P/E and ~3.1% dividend yield.

Positive Factors

Regulated earnings stability

DTE's core utility businesses produce predictable, rate‑regulated cash flows with steady revenue and mid‑single digit margin stability. That regulated earnings base supports durable cash generation, underpins dividend capacity and de‑risks earnings versus merchant exposure over the medium term.

Large data‑center contract and scalable pipeline

The signed 1.4 GW, long‑term power and storage contracts create a multi‑year, predictable demand stream and justify incremental storage and network investment. The >3 GW advanced pipeline implies material, structural load growth that can raise utility earnings and utilization for years if executed and approved.

Renewables, storage buildout and reliability gains

A sustained renewables and storage program diversifies generation mix, lowers carbon intensity and secures regulatory goodwill. Combined with marked SAIDI reliability gains, this supports long‑term customer satisfaction, regulatory support for rate base recovery, and resiliency that reduces outage costs over time.

Negative Factors

High leverage

Sustained elevated leverage increases sensitivity to rising interest rates and reduces financial flexibility for future capex or unexpected liabilities. For a capital‑intensive utility, this constrains room for organic investment, elevates refinancing risk and makes earnings more vulnerable to higher interest expense over multiple years.

Weak free cash flow and heavy capex needs

Consistently negative FCF after investment reflects a heavy capital program requiring ongoing external funding. Persistent negative post‑capex cash generation forces equity issuance and/or higher leverage, increases financing costs, and constrains free cash available for discretionary uses over the multi‑year 36.5B capex horizon.

Regulatory and legal risk (Clean Air Act penalty)

A $100M civil penalty plus mandated pollution controls and community remediation are material, potentially recurring cost drivers and set a regulatory precedent. The ruling and appeal create prolonged uncertainty, could require significant capex or operating changes at legacy assets, and increase regulatory scrutiny across operations.

DTE Energy Business Overview & Revenue Model

Company Description

DTE 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 Money

DTE Energy generates revenue primarily through the sale of electricity and natural gas to residential, commercial, and industrial customers. The Electric segment's revenue comes from the generation, transmission, and distribution of electricity, while the Gas segment derives income from the transportation and distribution of natural gas. The company's revenue model is largely based on regulated rates set by state utility commissions, which allows it to earn a return on its investments in infrastructure. Additionally, DTE Energy has significant partnerships for renewable energy projects and engages in energy trading, which also contributes to its earnings. The company's commitment to sustainability and investments in clean energy are expected to play a crucial role in its long-term growth and profitability.

DTE Energy Financial Statement Overview

Summary

Profitability and revenue trends are steady for a regulated utility (revenue up +6.7% in 2025; net margins ~9–11% in 2023–2025). However, the balance sheet has been highly leveraged on the 2021–2024 trend (debt-to-equity ~1.85–2.10) and free cash flow is negative in most years due to heavy investment needs, with some 2025 financial data inconsistencies reducing confidence in the latest-year read-through.

Income Statement

Revenue rebounded strongly in 2025 (+6.7% vs. 2024) after a softer 2023–2024 period, and profitability is generally steady with net margins around ~9–11% in 2023–2025. EBITDA margin remains healthy (~28–33% in 2023–2025), supporting a stable earnings profile typical of regulated utilities. Key weakness: profitability ratios show volatility across years (notably lower margins in 2021–2022), and the 2025 gross margin appears unusually high versus prior years, suggesting potential one-off items or classification effects that reduce comparability.

Balance Sheet

Leverage was high through 2021–2024 (debt-to-equity roughly ~1.85–2.10), which increases sensitivity to rates and reduces financial flexibility. Equity has grown over time, and returns on equity have been consistent (~10–13%), indicating stable underlying economics. Major data inconsistency in 2025 (very low reported total debt and missing total assets) makes the latest year hard to rely on; based on the multi-year trend prior to 2025, the balance sheet reads as leveraged for the sector with moderate stability.

Cash Flow

Operating cash flow is consistently positive (about $2.0B–$3.7B across 2020–2025), which supports ongoing operations and dividends. However, free cash flow is negative in most years (2020–2024), indicating heavy capital spending and/or funding needs; 2024 free cash flow was meaningfully negative (~-$0.8B). 2025 shows a sharp swing to positive free cash flow and a large reported decline in free-cash-flow growth, pointing to volatility and potential non-recurring drivers; overall, cash generation after investment has been weak and inconsistent.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.81B	12.46B	12.74B	19.23B	14.96B
Gross Profit	13.43B	4.34B	4.33B	3.67B	3.34B
EBITDA	3.96B	4.05B	3.96B	3.25B	2.75B
Net Income	1.46B	1.40B	1.40B	1.08B	907.00M
Balance Sheet
Total Assets	54.07B	48.85B	44.76B	42.68B	39.72B
Cash, Cash Equivalents and Short-Term Investments	250.00M	24.00M	26.00M	33.00M	28.00M
Total Debt	2.52B	23.24B	20.97B	19.24B	18.25B
Total Liabilities	41.76B	37.14B	33.70B	32.28B	31.01B
Stockholders Equity	12.30B	11.70B	11.05B	10.40B	8.71B
Cash Flow
Free Cash Flow	2.72B	-824.00M	-714.00M	-1.40B	-705.00M
Operating Cash Flow	2.72B	3.64B	3.22B	1.98B	3.07B
Investing Cash Flow	-4.01B	-4.95B	-4.09B	-3.43B	-3.86B
Financing Cash Flow	1.35B	1.34B	883.00M	1.46B	315.00M

DTE Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 145.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 145.03 is above the 20-day moving average (MA) of 137.66, above the 50-day MA of 133.23, and above the 200-day MA of 134.33, indicating a bullish trend. The MACD of 2.89 indicates Negative momentum. The RSI at 70.60 is Negative, neither overbought nor oversold. The STOCH value of 48.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTE.

DTE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	68 Neutral	$29.30B	20.25	11.41%	2.86%	22.71%	22.86%
PPL	68 Neutral	$27.23B	25.05	7.65%	3.13%	8.42%	32.48%
ES	66 Neutral	$26.93B	15.72	10.84%	4.54%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$28.27B	27.73	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$29.64B	20.23	12.16%	3.45%	19.42%	-9.68%
PCG	57 Neutral	$39.30B	15.18	8.62%	0.66%	-0.27%	-7.65%

DTE Energy Corporate Events

DTE Energy Hit With Major Clean Air Act Penalty

On February 18, 2026, DTE Energy reported that EES Coke Battery, its wholly owned Michigan coke facility, and certain parent entities including DTE Energy, have been found liable in a Clean Air Act case brought by the U.S. Department of Justice and the EPA, with Sierra Club and the City of River Rouge intervening. Following an August 25, 2025 partial summary judgment on liability and a remedies trial concluded September 29, 2025, the court on February 17, 2026 imposed a $100 million civil penalty, ordered the pursuit of permits for new pollution controls, and required funding of community air quality projects, with DTE planning to appeal and unable to estimate the ultimate financial impact.

The ruling marks a significant legal and financial setback for DTE Energy and its coke operations, underscoring rising enforcement pressure on industrial air emissions and potential future costs tied to mandated pollution control investments and community programs. The case could influence how utilities and industrial affiliates manage legacy assets in non-attainment areas, while creating uncertainty for investors and local stakeholders until the appeals process clarifies the final penalties and operational requirements.

The most recent analyst rating on (DTE) stock is a Buy with a $165.00 price target. To see the full list of analyst forecasts on DTE Energy stock, see the DTE Stock Forecast page.

DTE Energy Updates Executive Incentive and Long-Term Pay Metrics

On February 4, 2026, DTE Energy’s Organization and Compensation Committee set the 2026 performance measures and weightings for its Annual Incentive Plan, tying executive bonuses at DTE Energy, DTE Electric and DTE Vantage to operating earnings, cash from operations, customer satisfaction, employee engagement, safety and utility operating excellence or business optimization indices. Target annual incentive awards for named executive officers will range from 75% to 125% of base salary, with actual payouts varying between 0% and 200% of target based on results against these metrics.

The committee also approved the 2028 performance measures for long-term incentives under the shareholder-approved 2025 Long Term Incentive Plan, with awards granted in 2026 set to pay out in 2029 and ranging from 190% to 525% of base salary in restricted stock and performance stock units. Long-term payouts for DTE Energy and DTE Electric executives will depend primarily on relative total shareholder return and three-year cumulative operating EPS, while DTE Vantage leaders will additionally be evaluated on long-range earnings growth and long-term business optimization, reinforcing a compensation structure heavily linked to sustained financial performance and shareholder value.

The most recent analyst rating on (DTE) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on DTE Energy stock, see the DTE Stock Forecast page.

DTE Energy Establishes $1.5 Billion Equity Distribution Program

On December 19, 2025, DTE Energy Company entered into an equity distribution agreement with a syndicate of major banks and broker-dealers to offer and sell, from time to time, up to $1.5 billion of its common stock, including shares that may be sold under related forward sale agreements. Shares may be sold through ordinary broker transactions on the New York Stock Exchange, in block trades, or directly to managers acting as principals, with the sales agents and forward sellers earning commissions of up to 2% of gross proceeds. The structure allows DTE to layer in forward sale agreements under master forward confirmations, enabling the company to defer receipt of proceeds until future physical settlements, or alternatively to cash or net share settle, which could result in no proceeds and potential obligations to the forward purchasers. DTE plans to use any net proceeds from direct share sales and future forward settlements for general corporate purposes, including potential investments in its subsidiaries, providing additional financial flexibility to support ongoing operations and capital needs without committing to sell any specific amount of stock at the outset.

The most recent analyst rating on (DTE) stock is a Buy with a $151.00 price target. To see the full list of analyst forecasts on DTE Energy stock, see the DTE Stock Forecast page.

DTE Energy Updates Bylaws for Shareholder Meetings

On December 2, 2025, Mark W. Stiers, President and COO of DTE Vantage and Energy Trading, announced his retirement effective January 12, 2026, with an advisory role until March 31, 2026. Additionally, on December 3, 2025, DTE Energy‘s Board of Directors amended the company’s Bylaws to outline shareholder meeting protocols, including remote communication options and nomination procedures for the Board of Directors.

The most recent analyst rating on (DTE) stock is a Buy with a $158.00 price target. To see the full list of analyst forecasts on DTE Energy stock, see the DTE Stock Forecast page.