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Dte Energy Company (DTE)
NYSE:DTE
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DTE Energy (DTE) AI Stock Analysis

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DTE

DTE Energy

(NYSE:DTE)

Rating:69Neutral
Price Target:
$146.00
â–²(5.02%Upside)
DTE Energy's robust earnings call and strategic leadership changes provide a positive outlook, but high leverage and cash flow concerns slightly temper the overall score. The company maintains a strong operational foundation with fair valuation metrics.
Positive Factors
Earnings Growth
Increased confidence in the earnings growth outlook, data center opportunity, and capex.
Investment Opportunities
Strong investment runway into the early 2030s, making the next IRP a key milestone.
Market Performance
DTE shares have outperformed peers by over 400 basis points due to better-than-expected outlook and additional upside potential.
Negative Factors
Cost Exposure
The Trenton Battery Energy Storage Center could face tariff-related cost exposure, impacting capital investments.
Operational Expenses
Higher operational expenses for electric and gas sectors are expected to partially offset earnings gains.
Regulatory Challenges
Regulatory challenges now a material concern after disappointing successive rate case orders; Michigan premium status in question.

DTE Energy (DTE) vs. SPDR S&P 500 ETF (SPY)

DTE Energy Business Overview & Revenue Model

Company DescriptionDTE Energy (DTE) is a diversified energy company headquartered in Detroit, Michigan. It operates primarily in the utility sector, providing electric and natural gas services to residential, commercial, and industrial customers throughout Michigan. The company is also involved in non-utility energy businesses, including power and industrial projects, renewable energy, and energy trading.
How the Company Makes MoneyDTE Energy makes money through multiple revenue streams. The primary source of income comes from its utility operations, where it provides electricity and natural gas services to millions of customers in Michigan. The company charges customers based on the volume of electricity and gas used, along with applicable service fees. Additionally, DTE Energy generates revenue from its non-utility operations, which include power and industrial projects, renewable energy initiatives, and energy trading. These ventures involve investments in infrastructure and energy resources, contributing to the company's financial performance. Furthermore, DTE Energy has strategic partnerships and investments that enhance its capabilities in energy generation and distribution, supporting its overall earnings.

DTE Energy Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 2.30%|
Next Earnings Date:Jul 29, 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 Financial Statement Overview

Summary
DTE Energy shows strong profitability with a solid revenue growth of 9.6% and robust margins, but high leverage and negative free cash flow pose risks.
Income Statement
75
Positive
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.
Balance Sheet
65
Positive
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.
Cash Flow
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.46B12.74B19.23B14.96B11.42B
Gross Profit4.34B4.33B3.67B3.34B3.28B
EBITDA4.05B3.96B3.25B2.72B3.01B
Net Income1.40B1.40B1.08B907.00M1.37B
Balance Sheet
Total Assets48.85B44.76B42.68B39.72B45.50B
Cash, Cash Equivalents and Short-Term Investments24.00M26.00M33.00M28.00M472.00M
Total Debt23.24B20.97B19.24B18.25B19.61B
Total Liabilities37.14B33.70B32.28B31.01B32.91B
Stockholders Equity11.70B11.05B10.40B8.71B12.43B
Cash Flow
Free Cash Flow-824.00M-714.00M-1.40B-705.00M-160.00M
Operating Cash Flow3.67B3.22B1.98B3.07B3.70B
Investing Cash Flow-4.95B-4.09B-3.43B-3.86B-4.07B
Financing Cash Flow1.34B883.00M1.46B315.00M796.00M

DTE Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price139.02
Price Trends
50DMA
133.94
Positive
100DMA
133.53
Positive
200DMA
127.22
Positive
Market Momentum
MACD
1.45
Negative
RSI
65.76
Neutral
STOCH
85.29
Negative
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 139.02 is above the 20-day moving average (MA) of 133.97, above the 50-day MA of 133.94, and above the 200-day MA of 127.22, indicating a bullish trend. The MACD of 1.45 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$26.98B27.257.00%2.90%5.62%30.02%
76
Outperform
$27.68B22.1710.23%2.76%8.96%3.75%
73
Outperform
$34.80B21.2812.96%3.15%4.42%11.98%
70
Outperform
$23.89B21.918.69%4.15%7.92%1.54%
69
Neutral
$28.67B18.6613.28%3.09%11.16%20.94%
67
Neutral
$24.23B24.968.76%2.25%4.84%-11.24%
60
Neutral
C$5.15B-25.04-19.26%3.77%12.02%-69.08%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DTE
DTE Energy
139.02
24.71
21.62%
AEE
Ameren
100.04
24.30
32.08%
CNP
Centerpoint Energy
37.84
9.26
32.40%
FE
FirstEnergy
41.40
2.12
5.40%
PPL
PPL
36.58
8.06
28.26%
WEC
WEC Energy Group
109.54
28.71
35.52%

DTE Energy Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
DTE Energy Appoints Joi M. Harris as CEO
Positive
Jun 23, 2025

On June 19, 2025, DTE Energy‘s Board of Directors elected Joi M. Harris as President and Chief Executive Officer, effective September 8, 2025. Harris, who has been with the company since 1991, will succeed Gerardo Norcia, who will transition to Executive Chairman. This leadership change is part of a multi-year succession plan aimed at ensuring continuity and growth. Harris is recognized for her strategic leadership and operational excellence, having significantly improved electric reliability and led renewable energy projects. The transition is expected to maintain the company’s momentum in modernizing infrastructure and achieving long-term sustainable energy production.

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 11, 2025