DTE Energy (DTE) AI Stock Analysis

• Market Cap: $28.22B
• Dividend Yield: 3.09%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.24
• Revenue Growth: 11.16%
• EPS Growth: 20.94%
• Country: US
• Employees: 4,750
• Sector: Utilities
• Sector Strength: 89
• Industry: Regulated Electric
• EPS (TTM): 2.10
• Shares Outstanding: 207,515,690
• 10 Day Avg. Volume: 1,078,430
• 30 Day Avg. Volume: 1,488,819
• PEG Ratio: N/A
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -43.32
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 4.60
• Enterprise Value/Ebitda: 3.14
• 1Y Price Target: $145.00
• Price Target Upside: 6.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 72 Outperform
• Price Target: $151.00 ▲(11.05%Upside)

DTE Energy scores well overall, driven by solid financial performance, strong technical indicators, and a positive outlook from its recent earnings call. The company's strategic investments and operational efficiency are substantial strengths, though high leverage and negative free cash flow present risks. Valuation metrics are balanced, supporting a favorable investment case.

Positive Factors

Dividends

DTE reaffirmed its expectation of dividends per share to grow in line with earnings, setting it apart from peers.

Earnings

Favorable weather conditions are expected to positively impact earnings.

Growth Potential

Increased visibility and confidence in drivers of high-end growth at 6-8%.

Negative Factors

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.

Tariff Costs

The Trenton Battery Energy Storage Center could face tariff-related cost exposure, impacting capital investments.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 135.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 135.98 is below the 20-day moving average (MA) of 136.14, above the 50-day MA of 135.13, and above the 200-day MA of 126.01, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 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	81 Outperform	$26.80B	21.49	10.23%	2.81%	8.96%	3.75%
WEC	77 Outperform	$34.22B	20.93	12.96%	3.21%	4.42%	11.98%
PPL	75 Outperform	$25.69B	25.95	7.00%	3.01%	5.62%	30.02%
DTE	72 Outperform	$28.22B	18.36	13.28%	3.09%	11.16%	20.94%
FE	70 Neutral	$24.21B	22.31	8.69%	4.10%	7.92%	1.54%
CNP	67 Neutral	$24.44B	25.18	9.22%	2.28%	4.76%	4.08%
Sector *	64 Neutral	$8.60B	10.31	4.70%	4.39%	4.14%	-13.05%

DTE Energy Corporate Events

DTE Energy Shareholders Approve 2025 Incentive Plan

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.