DTE Energy (DTE) AI Stock Analysis

• Market Cap: $27.25B
• Dividend Yield: 3.32%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.11
• Revenue Growth: 19.42%
• EPS Growth: -9.68%
• Country: US
• Employees: 4,750
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 2.25
• Shares Outstanding: 207,683,010
• 10 Day Avg. Volume: 1,191,877
• 30 Day Avg. Volume: 1,508,132
• PEG Ratio: 120.53
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 2.01
• P/FCF Ratio: -30.33
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 3.68
• Enterprise Value/Gross Profit: 8.63
• Enterprise Value/Ebitda: 12.79
• 1Y Price Target: $151.89
• Price Target Upside: 15.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 7.22
• Revenue Forecast (FY): $13.72B

• Rating: 65 Neutral
• Price Target: $146.00 ▲(11.26% Upside)

DTE Energy's overall stock score reflects a stable financial performance with strong growth potential in the data center segment. The company's valuation is fair, and the earnings call provided a positive outlook. However, technical indicators suggest bearish momentum, and challenges in operational efficiency and cash flow conversion need to be addressed to sustain growth.

Positive Factors

Data Center Expansion

The data center expansion positions DTE for significant growth, leveraging increased demand for data infrastructure, which is expected to drive a 6% to 8% operating EPS growth through 2030.

Capital Investment Plan

The increased capital investment plan focuses on grid reliability and cleaner energy, aligning with long-term sustainability trends and regulatory support for renewable energy.

Employee Engagement

High employee engagement can lead to improved productivity and innovation, supporting long-term operational efficiency and a positive corporate culture.

Negative Factors

DTE Gas Segment Challenges

Operational challenges in the DTE Gas segment, including higher costs, may affect profitability and require strategic adjustments to align with financial targets.

Increased Equity Issuance

Frequent equity issuances could lead to shareholder dilution, impacting investor returns and potentially signaling financial stress or capital needs.

Vantage Segment Growth Constraints

Limited growth in the Vantage segment due to commodity pricing pressures may restrict revenue diversification and impact overall growth potential.

DTE Energy Business Overview & Revenue Model

Company Description

DTE Energy is a diversified energy company headquartered in Detroit, Michigan, primarily engaged in the utility sector. The company operates through two main segments: Electric and Gas. Its Electric segment provides electricity to over 2.3 million customers in Michigan, while the Gas segment serves more than 1.3 million customers in the same state. DTE Energy is committed to sustainable energy practices and invests in renewable energy sources, alongside traditional energy production. The company also offers energy-related products and services, including energy efficiency programs and renewable energy options.

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

DTE Energy shows solid revenue growth and profitability with improvements in leverage and capital structure. However, operational efficiency and cash flow conversion remain areas for improvement. The company's financial health is stable, but careful management of cash flow and operational margins will be crucial for sustaining growth.

Income Statement

DTE Energy shows a strong gross profit margin of 42.6% in TTM, indicating efficient cost management. The net profit margin is moderate at 6.5%, reflecting stable profitability. Revenue growth is positive at 4.4% TTM, recovering from previous declines. However, EBIT and EBITDA margins have decreased compared to previous years, suggesting potential challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved significantly to 0.07 in TTM, indicating a strong reduction in leverage. Return on equity is moderate at 8.2%, showing decent profitability relative to equity. The equity ratio stands at 23.4%, suggesting a stable capital structure. However, the overall leverage remains a concern given the industry's capital-intensive nature.

Cash Flow

Operating cash flow is robust with a coverage ratio of 1.23, indicating good cash generation relative to net income. However, free cash flow growth is negative, and the free cash flow to net income ratio is below 1, suggesting challenges in converting earnings into free cash flow. This could impact future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.82B	12.46B	12.74B	19.23B	14.96B	11.42B
Gross Profit	6.31B	4.34B	4.33B	3.67B	3.34B	3.28B
EBITDA	4.26B	4.05B	3.96B	3.25B	2.75B	3.13B
Net Income	968.01M	1.40B	1.40B	1.08B	907.00M	1.37B
Balance Sheet
Total Assets	52.03B	48.85B	44.76B	42.68B	39.72B	45.50B
Cash, Cash Equivalents and Short-Term Investments	79.00M	24.00M	26.00M	33.00M	28.00M	472.00M
Total Debt	25.30B	23.24B	20.97B	19.24B	18.25B	19.61B
Total Liabilities	39.87B	37.14B	33.70B	32.28B	31.01B	32.91B
Stockholders Equity	12.16B	11.70B	11.05B	10.40B	8.71B	12.43B
Cash Flow
Free Cash Flow	-863.00M	-824.00M	-714.00M	-1.40B	-705.00M	-160.00M
Operating Cash Flow	3.45B	3.64B	3.22B	1.98B	3.07B	3.70B
Investing Cash Flow	-3.93B	-4.95B	-4.09B	-3.43B	-3.86B	-4.07B
Financing Cash Flow	-468.00M	1.34B	883.00M	1.46B	315.00M	796.00M

DTE Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTE, the sentiment is Negative. The current price of 131.23 is below the 20-day moving average (MA) of 135.63, below the 50-day MA of 138.12, and below the 200-day MA of 134.82, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 31.50 is Neutral, neither overbought nor oversold. The STOCH value of 19.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DTE.

DTE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	70 Outperform	$27.01B	19.21	11.47%	2.80%	22.71%	22.86%
FE	68 Neutral	$25.94B	19.51	10.54%	3.92%	7.64%	48.61%
ES	67 Neutral	$25.04B	18.34	8.65%	4.45%	13.12%	―
PCG	66 Neutral	$33.32B	12.92	9.21%	0.67%	-0.27%	-7.65%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$27.25B	19.66	11.64%	3.32%	19.42%	-9.68%
PPL	63 Neutral	$25.05B	23.04	7.65%	3.17%	8.42%	32.48%

DTE Energy Corporate Events

DTE Energy Secures New Credit Agreement with Citibank

On October 22, 2025, DTE Energy, along with its subsidiaries DTE Electric and DTE Gas, entered into a sixth amended and restated five-year unsecured revolving credit agreement with Citibank and a syndicate of lenders. The agreements, which replace previous credit arrangements, allow for significant borrowing limits and include conditions such as maintaining specific debt to capitalization ratios. These facilities, which expire in 2030 with options for extension, are intended to support general corporate purposes, reflecting DTE’s strategic financial planning.

DTE Energy Completes $600M Debentures Sale

On September 17, 2025, DTE Energy Company completed the sale of $600 million in 2025 Series H 6.25% Junior Subordinated Debentures due in 2085. This financial move is part of DTE Energy’s strategic efforts to manage its capital structure, potentially impacting its financial stability and market positioning.

DTE Energy Enhances Executive Severance Benefits

On September 10, 2025, DTE Energy‘s Benefit Plan Administration Committee approved an amendment to the Executive Severance Allowance Plan, enhancing severance benefits for the CEO, including 24 months of COBRA coverage and a lump sum of 200% of base pay upon termination without cause. Additionally, on September 11, 2025, DTE Energy entered into new Change in Control Severance Agreements and Indemnification Agreements with its executives and non-employee directors, ensuring management continuity and aligning executive and shareholder interests during corporate changes.