DT Midstream (DTM) AI Stock Analysis

• Market Cap: $10.80B
• Dividend Yield: 3.08%
• Average Volume (3M): 768.78K
• Price to Earnings (P/E): 29.1
• Beta (1Y): 0.73
• Revenue Growth: 10.83%
• EPS Growth: -10.47%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.06
• Shares Outstanding: 101,590,680
• 10 Day Avg. Volume: 706,663
• 30 Day Avg. Volume: 768,783
• PEG Ratio: 0.69
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.81
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.20
• Enterprise Value/Gross Profit: 11.31
• Enterprise Value/Ebitda: 2.44
• 1Y Price Target: $108.57
• Price Target Upside: 2.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 79 Outperform
• Price Target: $117.00 ▲(10.06%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

Business Model

DTM's fee-based, contracted cash flows should act defensive in an uncertain environment.

Financial Performance

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

Investment Opportunities

Management sees a growing investment opportunity set, which could drive an increase in the backlog including a potential Millennium pipeline expansion and additional potential investments on the acquired Midwest pipelines.

Negative Factors

Pipeline Forecast

2025 and 2026 EBITDA estimates are lowered due to a more conservative pipeline forecast.

Quarterly Performance

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

Valuation

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 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 has strong financials with consistent revenue growth and high profitability margins. Despite a stable balance sheet, further leverage reduction could improve financial stability. Cash flow is robust, with a significant increase in free cash flow.

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: 106.31
• 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 DTM, the sentiment is Positive. The current price of 106.31 is above the 20-day moving average (MA) of 105.24, above the 50-day MA of 100.24, and above the 200-day MA of 94.94, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 49.26 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
HESM	80 Outperform	$8.31B	15.56	49.74%	7.17%	8.77%	15.22%
DTM	79 Outperform	$10.80B	29.07	8.29%	3.08%	10.83%	-10.47%
WES	78 Outperform	$14.81B	11.61	39.79%	9.37%	11.48%	-5.67%
AM	78 Outperform	$8.76B	21.26	19.71%	4.92%	5.03%	7.15%
PAA	68 Neutral	$12.69B	19.42	9.43%	8.42%	3.40%	-20.48%
KNTK	58 Neutral	$6.98B	47.07	-8.21%	7.06%	23.42%	-61.22%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%

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.