DT Midstream (DTM) AI Stock Analysis

• Market Cap: $11.23B
• Dividend Yield: 2.87%
• Average Volume (3M): 742.46K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.64
• Revenue Growth: 15.28%
• EPS Growth: -9.99%
• Country: US
• Employees: 556
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.04
• Shares Outstanding: 101,592,510
• 10 Day Avg. Volume: 909,060
• 30 Day Avg. Volume: 742,458
• 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: 1.31
• Enterprise Value/Revenue: 13.28
• Enterprise Value/Gross Profit: 25.36
• Enterprise Value/Ebitda: 15.76
• 1Y Price Target: $112.33
• Price Target Upside: 1.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: $112.00 ▲(0.76% Upside)

DT Midstream's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are slightly offset by mixed technical indicators and a relatively high valuation. The company's strategic investments and financial health position it well for future growth, but current market conditions and valuation metrics suggest caution.

Positive Factors

Strong Financial Health

The company's solid profitability and robust cash flow generation indicate a strong financial foundation, supporting long-term growth and stability.

Investment Grade Rating

Achieving an investment-grade rating enhances the company's creditworthiness, reducing borrowing costs and increasing financial flexibility for future projects.

Strategic Growth Projects

Significant investment in growth projects, particularly in the pipeline segment, positions DT Midstream for long-term expansion and increased market presence.

Negative Factors

Decreased EBITDA

A decrease in EBITDA, even if slight, may indicate challenges in maintaining profitability levels, potentially impacting future financial performance.

Seasonally Lower Earnings

Seasonally lower earnings in the pipeline segment suggest potential volatility in revenue, which could affect financial predictability and planning.

Decreased Northeast Volumes

Decreased volumes in the Northeast region highlight operational challenges that may affect revenue consistency and require strategic adjustments.

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 fee-based contracts for its transportation and storage services. The company earns money by charging customers for the delivery of natural gas through its pipeline infrastructure and for the storage capacity it provides. Key revenue streams include long-term contracts with utility companies and industrial customers that ensure a steady income. Additionally, DTM may engage in short-term transactions when market conditions allow. Significant partnerships with producers and utilities enhance its earning potential, ensuring stable cash flow and risk mitigation in fluctuating market environments.

DT Midstream Financial Statement Overview

Summary

DT Midstream exhibits strong financial health with solid profitability, efficient operations, and robust cash flow generation. The company maintains a balanced capital structure with moderate leverage, supporting its growth trajectory. While revenue growth has slightly decelerated, the company's profitability and cash flow metrics remain strong, positioning it well within the Oil & Gas Midstream industry.

Income Statement

DT Midstream demonstrates strong profitability with a high gross profit margin of 71.87% and a solid net profit margin of 33.90% in TTM (Trailing-Twelve-Months). The revenue growth rate of 6.23% indicates a positive trend, although slightly lower than previous years. The EBIT and EBITDA margins are robust at 61.77% and 83.95%, respectively, showcasing efficient operations.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.73, indicating moderate leverage. Return on equity stands at 8.28%, reflecting decent profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced capital structure.

Cash Flow

DT Midstream's cash flow is strong, with a significant free cash flow growth rate of 35.82% in TTM. The operating cash flow to net income ratio of 2.38 indicates robust cash generation relative to earnings. The free cash flow to net income ratio of 0.78 further underscores efficient cash management.

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	581.00M	528.00M	495.00M	483.00M	443.00M	427.00M
EBITDA	935.00M	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	274.00M	330.00M	-452.00M	58.00M	-605.00M	113.00M

DT Midstream Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 111.15 is above the 20-day moving average (MA) of 105.64, above the 50-day MA of 103.27, and above the 200-day MA of 100.07, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 71.61 is Negative, neither overbought nor oversold. The STOCH value of 82.06 is Negative, 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
WES	80 Outperform	14.95B	12.06	39.91%	9.07%	7.11%	-16.14%
AM	78 Outperform	9.31B	20.69	―	4.61%	7.09%	17.53%
HESM	72 Outperform	7.40B	13.08	42.04%	8.13%	9.02%	17.28%
DTM	69 Neutral	$11.23B	29.71	8.48%	2.87%	15.28%	-9.99%
PAA	68 Neutral	12.50B	19.66	9.44%	8.24%	-4.31%	-17.80%
PAGP	62 Neutral	14.38B	27.54	0.72%	7.75%	-4.31%	-16.62%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.