DT Midstream (DTM) AI Stock Analysis

• Market Cap: $10.57B
• Dividend Yield: 2.91%
• Average Volume (3M): 901.38K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.73
• Revenue Growth: 10.83%
• EPS Growth: -10.47%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.06
• Shares Outstanding: 101,590,680
• 10 Day Avg. Volume: 700,135
• 30 Day Avg. Volume: 901,375
• PEG Ratio: 14.67
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.60
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 17.82
• Enterprise Value/Ebitda: 3.84
• 1Y Price Target: $106.25
• Price Target Upside: 2.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 79 Outperform
• Price Target: $117.00 ▲( 12.42% Upside)

DT Midstream scores well due to strong financial performance, positive earnings call, and favorable technical indicators. Valuation is slightly high, but the company's commitment to growth and dividends supports its attractiveness.

Positive Factors

Financial Performance

DTM is considered undervalued compared to its peers, trading about 1x below WMB EV / 2027 consensus EBITDA.

Growth Opportunities

DTM announced a long-term agreement to provide gas capacity for a new power plant in West Virginia, indicating future growth.

Investment Potential

DTM's management indicated that the Borealis project could utilize existing Midwestern pipeline capacity, potentially leading to significant EBITDA gains.

Negative Factors

Earnings Performance

Q4 missed expectations with adjusted EBITDA of $235 million falling below the consensus of $248 million.

Interest and Dividend

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

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, Inc. provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. It develops, owns, and operates an integrated portfolio of interstate pipelines, intrastate pipelines, storage systems, lateral pipelines, gathering systems, related treatment plants, and compression and surface facilities. The company engages in the transportation and storage of natural gas for intermediate and end user customers; and collecting natural gas from points at or near customers' wells for delivery to plants for processing, to gathering pipelines for gathering, or to pipelines for transportation, as well as offers compression, dehydration, gas treatment, water impoundment, water storage, water transportation, and sand mining services. It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers. The company was incorporated in 2021 and is headquartered in Detroit, Michigan.

How the Company Makes Money

DT Midstream generates revenue through a combination of fee-based and volume-based contracts for its natural gas transportation and storage services. The company owns and operates an extensive network of pipelines and storage facilities across key natural gas producing regions in the United States. Revenue primarily comes from long-term contracts with fixed fees, providing stable and predictable cash flows. Additionally, DT Midstream may engage in strategic partnerships and joint ventures to expand its infrastructure capabilities. The company also leverages its expertise to optimize the utilization of its assets, ensuring high reliability and efficiency in its operations, which further contributes to its earnings.

DT Midstream Financial Statement Overview

Summary

DT Midstream exhibits strong financial performance with consistent revenue growth and profitability. The income statement shows a solid top-line growth with improved margins, while the balance sheet reflects moderate financial stability and manageable leverage. Cash flow is robust, with significant free cash flow growth, although capital expenditure management remains crucial.

Income Statement

DT Midstream demonstrates strong profitability with a consistent increase in gross and net profit margins over the years. The gross profit margin in the latest annual report is 75.13%, and the net profit margin is 37.39%. Revenue has grown steadily, with a 6.4% increase from the previous year, indicating solid top-line growth.

Balance Sheet

The balance sheet shows a relatively stable position with a debt-to-equity ratio of 0.44, highlighting manageable leverage. However, the equity ratio stands at 52.67%, indicating moderate financial stability. Return on equity is at 7.93%, suggesting decent profitability for shareholders.

Cash Flow

DT Midstream's cash flow is robust, with a significant increase in free cash flow, which grew by 2826.92% in the last year. The operating cash flow to net income ratio is healthy at 2.08, highlighting efficient cash generation relative to earnings. However, reliance on operating cash flow is crucial as the company had significant capital expenditures in prior years.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04B	981.00M	922.00M	920.00M	840.00M	754.00M
	Gross Profit
770.00M	772.00M	495.00M	653.00M	609.00M	427.00M
	EBIT
513.00M	489.00M	467.00M	478.00M	551.00M	414.00M
	EBITDA
908.00M	884.00M	850.00M	808.00M	718.00M	722.00M
	Net Income Common Stockholders
365.00M	354.00M	384.00M	370.00M	307.00M	312.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	68.00M	56.00M	61.00M	132.00M	42.00M
	Total Assets
0.00	10.20B	8.98B	8.83B	8.17B	8.34B
	Total Debt
3.43B	3.52B	3.27B	3.42B	3.08B	3.22B
	Net Debt
3.35B	3.45B	3.21B	3.36B	2.95B	3.18B
	Total Liabilities
5.15B	5.17B	4.70B	4.68B	4.14B	4.11B
	Stockholders Equity
4.64B	4.63B	4.14B	4.01B	3.87B	4.07B
Cash Flow		Free Cash Flow
455.00M	413.00M	26.00M	387.00M	432.00M	79.00M
	Operating Cash Flow
746.00M	763.00M	798.00M	725.00M	572.00M	597.00M
	Investing Cash Flow
-1.07B	-1.08B	-351.00M	-854.00M	123.00M	-714.00M
	Financing Cash Flow
338.00M	330.00M	-452.00M	58.00M	-605.00M	113.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 104.07
• 50DMA: Positive
• 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 104.07 is above the 20-day moving average (MA) of 101.36, above the 50-day MA of 97.96, and above the 200-day MA of 92.61, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 60.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.87 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	79 Outperform	$10.57B	28.46	8.29%	2.91%	10.83%	-10.47%
AM	78 Outperform	$8.94B	21.69	19.71%	4.83%	5.03%	7.15%
WES	77 Outperform	$14.85B	11.64	39.79%	11.23%	11.48%	-5.67%
HESM	76 Outperform	$8.22B	15.00	49.74%	7.09%	8.77%	15.22%
PAA	71 Outperform	$11.77B	18.01	9.43%	7.96%	3.40%	-20.48%
Sector *	57 Neutral	$7.06B	3.04	-3.49%	5.80%	0.53%	-50.39%
KNTK	57 Neutral	$7.08B	47.76	-8.21%	6.89%	23.42%	-61.22%

DT Midstream Corporate Events

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.

DT Midstream Reports Strong Q1 2025 Financial Results

On April 30, 2025, DT Midstream announced strong financial results for the first quarter of 2025, reporting a net income of $108 million and an adjusted EBITDA of $280 million. The company declared a quarterly cash dividend of $0.82 per share, payable on July 15, 2025. Significant business updates include the successful integration of new interstate pipelines and the commencement of construction for a new power plant lateral. These developments position DT Midstream favorably for continued growth and operational success in the natural gas industry.