DT Midstream (DTM) AI Stock Analysis

• Market Cap: $10.73B
• Dividend Yield: 2.94%
• Average Volume (3M): 854.64K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.65
• Revenue Growth: 15.28%
• EPS Growth: -9.99%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 51
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.04
• Shares Outstanding: 101,592,510
• 10 Day Avg. Volume: 776,716
• 30 Day Avg. Volume: 854,645
• PEG Ratio: -3.29
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 9.89
• P/FCF Ratio: 23.50
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 13.28
• Enterprise Value/Gross Profit: 18.49
• Enterprise Value/Ebitda: 15.82
• 1Y Price Target: $113.63
• Price Target Upside: 9.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 80 Outperform
• Price Target: $121.00 ▲(17.00% Upside)

DT Midstream's strong financial performance and positive corporate developments are the primary drivers of its overall score. While the stock's valuation is relatively high, the company's robust earnings growth, strategic projects, and investment-grade credit rating position it well for future success. Technical indicators suggest stable momentum, supporting a positive outlook.

Positive Factors

Dividend Stability

DTM intends to maintain dividend coverage, providing a stable return to shareholders.

Financial Targets

DTM reaffirmed 2025 EBITDA guidance and its 2026 early outlook, maintaining confidence in their financial targets.

Growth Potential

DTM added $600mm of FID capex, driven by Guardian pipeline, adding to the growth potential.

Negative Factors

Interest Expense

Lowering the price target to $108/share to reflect higher interest expense and a lower dividend payout.

Project Challenges

Building the new Millennium project extension in New York State could present challenges.

Valuation Concerns

Despite DTM's improved fundamental outlook, shares are considered fairly valued after strong year-over-year performance.

DT Midstream Business Overview & Revenue Model

Company Description

DT Midstream (DTM) is a leading energy infrastructure company that specializes in owning, operating, and developing natural gas pipelines and storage systems across the United States. The company focuses on the transportation and storage of natural gas, providing essential services to utilities, power plants, marketers, large industrial customers, and other energy companies. With a strong commitment to safety, reliability, and sustainability, DT Midstream plays a critical role in the energy supply chain by ensuring the efficient and secure delivery of natural gas.

How the Company Makes Money

DT Midstream generates revenue primarily through the transportation and storage of natural gas. The company's revenue model is based on long-term, fee-based contracts with customers who require reliable access to natural gas infrastructure. These contracts often include fixed reservation fees that are paid regardless of volume transported, ensuring a stable revenue stream. Additionally, the company may earn variable fees based on the actual volume of gas transported through its pipeline systems. Key revenue streams include fees from natural gas transportation services, storage services, and related ancillary services. DT Midstream's strategic partnerships with major energy producers and consumers, along with its expansive network of pipelines and storage facilities, contribute significantly to its earnings by enhancing its ability to meet the diverse needs of its customers while optimizing operational efficiency.

DT Midstream Financial Statement Overview

Summary

DT Midstream exhibits strong financial performance with robust revenue growth and profitability metrics. The company has a high gross and net profit margin, indicating efficient cost management. The stable balance sheet and strong cash flow generation provide a solid financial foundation, though increasing liabilities should be monitored.

Income Statement

DT Midstream has demonstrated strong financial performance in its income statement. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 73.75% and a net profit margin of 34.95%, indicating efficient cost management and profitability. Revenue growth is evident with an increase from $981M in the last annual report to $1,044M TTM, marking an approximate 6.43% growth. The EBIT and EBITDA margins are solid at 49.14% and 86.97%, respectively, underscoring robust operational efficiency. However, a slight decline in gross profit from the previous year suggests room for improvement in cost control.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.74, which is manageable but slightly higher than optimal. The equity ratio stands at 46.74%, indicating a solid equity base relative to total assets. Return on equity is healthy at 7.86% TTM, showcasing effective use of shareholder capital to generate profits. However, the company's total liabilities have been increasing, which could pose potential risks if not managed appropriately.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio of 2.13, demonstrating efficient cash generation from operations. The free cash flow to net income ratio is 1.25, indicating positive free cash flow generation. The free cash flow growth rate is notable, with an increase from $413M in the previous year to $455M TTM, representing a 10.17% growth. This solid cash flow performance allows for flexibility in financing and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	981.00M	922.00M	920.00M	840.00M	754.00M
Gross Profit	797.00M	772.00M	495.00M	653.00M	609.00M	427.00M
EBITDA	931.00M	884.00M	850.00M	808.00M	718.00M	722.00M
Net Income	376.00M	354.00M	384.00M	370.00M	307.00M	312.00M
Balance Sheet
Total Assets	9.96B	9.94B	8.98B	8.83B	8.17B	8.34B
Cash, Cash Equivalents and Short-Term Investments	74.00M	68.00M	56.00M	61.00M	132.00M	42.00M
Total Debt	3.40B	3.52B	3.27B	3.42B	3.08B	3.22B
Total Liabilities	5.14B	5.17B	4.70B	4.68B	4.14B	4.11B
Stockholders Equity	4.67B	4.63B	4.14B	4.01B	3.87B	4.07B
Cash Flow
Free Cash Flow	618.00M	413.00M	26.00M	387.00M	432.00M	79.00M
Operating Cash Flow	789.00M	763.00M	798.00M	725.00M	572.00M	597.00M
Investing Cash Flow	-1.06B	-1.08B	-351.00M	-854.00M	123.00M	-714.00M
Financing Cash Flow	275.00M	330.00M	-452.00M	58.00M	-605.00M	113.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DTM, the sentiment is Positive. The current price of 103.42 is above the 20-day moving average (MA) of 102.24, below the 50-day MA of 104.29, and above the 200-day MA of 98.92, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 71.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DTM.

DT Midstream Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTM	80 Outperform	$10.73B	28.39	8.48%	2.94%	15.28%	-9.99%
WES	79 Outperform	$0.00	11.97	39.79%	8.97%	11.48%	-5.67%
AM	78 Outperform	$8.87B	19.70	21.65%	4.86%	5.03%	7.15%
HESM	77 Outperform	$8.93B	15.78	49.74%	6.58%	8.97%	17.28%
PAA	71 Outperform	$12.66B	19.37	9.43%	8.10%	3.40%	-20.48%
KNTK	61 Neutral	$6.76B	45.59	-8.21%	7.29%	23.42%	-61.22%
Sector *	56 Neutral	C$4.11B	-0.34	-1.30%	6.51%	5.43%	-67.68%

DT Midstream Corporate Events

DT Midstream Reports Strong Q2 2025 Financial Results

On July 31, 2025, DT Midstream reported strong financial results for the second quarter of 2025, with a net income of $107 million and an adjusted EBITDA of $277 million. The company declared a quarterly cash dividend of $0.82 per share, payable on October 15, 2025. Significant business achievements included reaching a final investment decision on the Guardian Pipeline ‘G3’ expansion, finalizing an investment plan for pipeline modernization, achieving an investment-grade credit rating, and setting a record high quarterly gathering volume for the Haynesville system. These developments position DT Midstream well to meet its financial goals for 2025 and reaffirm its adjusted EBITDA guidance for 2025 and 2026.

The most recent analyst rating on (DTM) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on DT Midstream stock, see the DTM Stock Forecast page.

DT Midstream Achieves Investment Grade Credit Rating

On May 20, 2025, DT Midstream announced that it has achieved an investment grade credit rating from both Moody’s and Fitch Ratings. Moody’s upgraded the company’s credit rating to Baa3 with a stable outlook on May 16, 2025, while Fitch Ratings had upgraded it to BBB- with a stable outlook on October 3, 2024. This achievement is expected to enhance the company’s liquidity and reduce interest expenses, marking a significant milestone since becoming a standalone public company. The ratings upgrades reflect the strength of DT Midstream’s balance sheet and the quality and scale of its business operations.

The most recent analyst rating on (DTM) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on DT Midstream stock, see the DTM Stock Forecast page.

DT Midstream Enhances Stockholder Rights at Annual Meeting

On May 6, 2025, DT Midstream, Inc. held its virtual 2025 Annual Meeting of Stockholders where several key decisions were made. Stockholders approved a proposal to amend the company’s Certificate of Incorporation, allowing stockholders with at least 25% voting power to request special meetings. This change, effective May 9, 2025, enhances stockholder rights and could impact the company’s governance dynamics. Additionally, the meeting saw the election of board members, ratification of the appointment of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation on an advisory basis.