10Y annualized return is
positive but below market average
at 7.1% per year
DTE has met or exceeded earnings expectations in
the majority of
recent quarters (7/10)
Attractive P/E Ratio
Low Price to Cash Flow Ratio
Strong Gross Profit Margin
Solid Return on Equity
Low Debt Levels
🏆 Strong Employee Engagement
🔒 Robust Regulatory and Rate Support
🌱 Commitment to Clean Energy
🚀 Data Center Opportunities
📈 Long-Term Growth Guidance
High EV/EBITDA Ratio
Moderate Net Profit Margin
Liquidity Concerns
Low Cash Ratio
💰 Uncertainty Beyond Tax Credits
DTE Energy demonstrates strong business quality through its employee engagement, regulatory support, and commitment to clean energy. Future prospects appear promising with significant investment in data centers and a solid growth trajectory, although potential uncertainties beyond current tax credits could pose risks.
Analysis Date: February 13, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
DTE Energy Company is a utility company that provides electricity and natural gas to millions of homes and businesses in Michigan. They generate electricity using various sources, including wind, water, and nuclear power. DTE also delivers natural gas through a large network of pipes. Additionally, they offer services to help industries with energy needs, like producing steam and treating wastewater. In simple terms, DTE Energy makes sure people have the power and gas they need to run their daily lives and businesses.
Streams of revenue
Geographic Distribution
Estimations for reference only
Core Products
Business Type
Business to Consumer
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$84.78
Current Market Price: $132.13
IV/P Ratio: 0.64x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-56.00000000000001%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for DTE
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (19.43)
P/B ratio ≤ 1.5 (2.33)
Current ratio ≥ 2.0 (0.71x)
Long-term debt < Net current assets (-0.12x)
Margin of safety (-56.00000000000001%)
DTE does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
12.32%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
81.84%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
11.27%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The gross profit margin of 81.84% demonstrates that the company retains a significant portion of revenue after accounting for the cost of goods sold, indicating strong pricing power.
A return on equity (ROE) of 12.32% shows effective use of equity capital in generating profits.
The net profit margin of 11.27% indicates that while the company is profitable, there might be room for improvement in controlling costs or enhancing revenue.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.22x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
0.71x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
With a debt-to-equity ratio of 0.22 and a debt-to-assets ratio of 0.05, the company demonstrates a strong balance sheet with manageable debt levels.
The current ratio of 0.71 and quick ratio of 0.46 suggest potential liquidity issues, indicating that the company may struggle to cover short-term liabilities.
The cash ratio of 0.0047 indicates extremely limited cash reserves relative to current liabilities, raising concerns about immediate financial flexibility.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
DTE Energy has consistently ranked high in employee engagement, achieving recognition from Gallup for twelve consecutive years. This strong culture is seen as a 'secret sauce' for continued success, indicating a motivated workforce that can enhance overall productivity.
The company received a constructive rate order that supports its investment agenda and allows for continuous infrastructure improvements. This regulatory backing provides a stable environment for executing its long-term investment plans.
DTE Energy is making significant investments in clean energy and grid modernization, with plans to allocate $30 billion over the next five years. This includes a $5 billion increase to enhance reliability and transition to cleaner generation.
DTE has identified data centers as a significant growth opportunity, with agreements that could lead to a potential 2,100 megawatts of new load. This positions the company well to capitalize on the growing demand for energy from tech firms.
The company targets a 6% to 8% operating EPS growth through 2029, with a bias towards achieving the upper end of this range from 2025 through 2027. This consistent growth outlook underscores confidence in operational execution and market demand.
The company does not assume any production or investment tax credits beyond 2027, which may impact growth prospects if new incentives are not introduced or if existing ones are not extended.
