DTE Energy (DTE) AI Stock Analysis

• Market Cap: $28.16B
• Dividend Yield: 3.14%
• Average Volume (3M): 1.20M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.17
• Revenue Growth: 14.35%
• EPS Growth: 3.62%
• Country: US
• Employees: 4,750
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Electric
• EPS (TTM): 1.36
• Shares Outstanding: 207,587,800
• 10 Day Avg. Volume: 946,366
• 30 Day Avg. Volume: 1,198,748
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 11.56
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $146.90
• Price Target Upside: 7.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: $152.00 ▲(11.43% Upside)

DTE Energy's overall score reflects strong earnings guidance and strategic investments in renewable energy, which are key strengths. However, high leverage and cash flow challenges due to capital expenditures are significant risks. The stock's valuation is fair, and technical indicators show moderate bullish momentum.

Positive Factors

Data Center Opportunities

Management continues to target finalizing data center contracts with potential for significant projects.

Earnings Outlook

Management is confident in hitting the high end of its 6-8% outlook given its robust current capital plan and clarity on 45Z credits through 2029.

Infrastructure Recovery Mechanism

Staff supports extending the Infrastructure Recovery Mechanism at increasing levels, which is seen as a notable improvement from their position in the previous rate case.

Negative Factors

Long-Term Growth Rate

Despite the overall positive tone on the call, management's comments on its long-term growth rate likely drove the underperformance in DTE shares.

Quarterly Results

Quarterly results were slightly behind expectations and largely driven by weaker year-over-year comps due to the timing of taxes.

Return on Equity

The recommended ROE of 9.80% is below the currently authorized 9.90%.

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 its customers. The Electric segment is responsible for the bulk of the company's earnings, with revenue derived from residential, commercial, and industrial electricity sales, as well as from transmission and distribution services. The Gas segment contributes revenue through the sale and distribution of natural gas, including residential heating and commercial usage. Additionally, DTE earns income from regulated utility operations, which are supported by rate structures set by state regulatory bodies. The company also has investments in renewable energy projects, adding to its revenue base by participating in the growing market for green energy solutions. Partnerships with local governments and businesses for energy efficiency programs further bolster DTE's earnings by creating additional service offerings and enhancing customer engagement.

DTE Energy Financial Statement Overview

Summary

DTE Energy shows strong revenue growth and profitability with consistent margins. However, high leverage and negative free cash flow due to significant capital expenditures pose challenges. Improving cash flow sustainability and managing debt levels are crucial for enhancing financial flexibility.

Income Statement

The income statement shows a solid gross profit margin of 44.09% and a net profit margin of 10.16% for the TTM period. Revenue growth is strong at 14.01% compared to the previous annual period. However, there is a slight decrease in EBIT margin to 14.95% from 16.79% the previous year, indicating some pressure on operating efficiency. Overall, the company demonstrates strong revenue growth and maintains healthy profitability metrics.

Balance Sheet

The balance sheet reflects a debt-to-equity ratio of 2.05, indicating significant leverage, which is typical in the regulated utility industry. The equity ratio is 23.33%, showing a reasonable level of equity financing. Return on equity is moderate at 12.31%, signaling satisfactory returns to shareholders despite the high leverage. The company's financial stability is adequate but could be improved by reducing debt levels.

Cash Flow

Cash flow analysis indicates a challenging situation with a negative free cash flow of $-644 million for the TTM period, although there is an improvement in operating cash flow to net income ratio of 2.48. The free cash flow to net income ratio remains negative, highlighting a need for better cash management or reduced capital expenditures. Despite robust operating cash generation, high capital expenditures impact overall cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.20B	12.46B	12.74B	19.23B	14.96B	11.42B
Gross Profit	4.44B	4.34B	4.33B	3.67B	3.34B	3.28B
EBITDA	4.16B	4.05B	3.96B	3.25B	2.75B	3.13B
Net Income	1.44B	1.40B	1.40B	1.08B	907.00M	1.37B
Balance Sheet
Total Assets	50.25B	48.85B	44.76B	42.68B	39.72B	45.50B
Cash, Cash Equivalents and Short-Term Investments	84.00M	24.00M	26.00M	33.00M	28.00M	472.00M
Total Debt	23.99B	23.24B	20.97B	19.24B	18.25B	19.61B
Total Liabilities	38.52B	37.14B	33.70B	32.28B	31.01B	32.91B
Stockholders Equity	11.72B	11.70B	11.05B	10.40B	8.71B	12.43B
Cash Flow
Free Cash Flow	-644.00M	-824.00M	-714.00M	-1.40B	-705.00M	-160.00M
Operating Cash Flow	3.58B	3.64B	3.22B	1.98B	3.07B	3.70B
Investing Cash Flow	-3.45B	-4.95B	-4.09B	-3.43B	-3.86B	-4.07B
Financing Cash Flow	-125.00M	1.34B	883.00M	1.46B	315.00M	796.00M

DTE Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 136.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 136.41 is below the 20-day moving average (MA) of 138.70, below the 50-day MA of 136.60, and above the 200-day MA of 129.70, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DTE.

DTE Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	75 Outperform	$26.97B	21.90	10.29%	2.74%	17.32%	3.35%
FE	73 Outperform	$25.10B	19.19	10.33%	4.00%	6.44%	49.07%
DTE	71 Outperform	$28.16B	19.52	12.61%	3.14%	14.35%	3.62%
PPL	71 Outperform	$26.93B	27.38	6.96%	2.90%	6.62%	17.35%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
ES	66 Neutral	$23.64B	27.42	5.63%	4.63%	14.44%	―
PCG	65 Neutral	$33.67B	14.17	8.48%	0.55%	-1.30%	-8.34%

DTE Energy Corporate Events

DTE Energy to Discuss 2025 Earnings Guidance

DTE Energy announced it will meet with investors on August 20, 2025, to discuss its 2025 operating earnings guidance. The company noted that certain items affecting the 2025 reported results might be excluded from operating results, as these items can fluctuate significantly and impact reported earnings.

DTE Energy Appoints Joi M. Harris as CEO

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.