DTE Energy Co (DTG) stock analysis

P/E above its 5-year median

DTE Energy's P/E of 21.3 is above its own 5-year median of 19.8.

P/E below the industry

DTE Energy's P/E of 21.3 is below the Electric Services median of 21.7.

EV/EBITDA above its 5-year median

DTE Energy's EV/EBITDA of 13.5 is above its 5-year median of 13.2.

P/B above the industry

DTE Energy's price-to-book of 2.30 is above the Electric Services median of 2.02.

Trading below fair value

The share price of $134.52 is below our fair value estimate of $141.24.

Margin of safety under 20%

The price is 4.8% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -6.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 8.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -8.7% over the last twelve months, against a 5-year average of 1.3% a year.

Growing faster than the industry

Revenue grew 15.9% over the last twelve months; the Electric Services median is 7.8%.

Guidance unchanged

The latest outlook (2026 operating EPS, Jul 28, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 11.0% over the last twelve months and averaged 11.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

DTE Energy's return on equity of 11.0% is above the Electric Services median of 8.3%.

Earnings grew over 5 years

Net income grew 1.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 8.0% over the last twelve months, against a 5-year average of 8.6%.

Net margin below the industry

DTE Energy's net margin of 8.0% is below the Electric Services median of 8.8%.

High debt

Debt is 227% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 157% five years ago to 227%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 12.2% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 1.9 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.80 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.91; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

DTE Energy paid dividends worth 3.5% of the share price over the last twelve months.

Yield below Treasuries

The 3.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; DTE Energy yields 3.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 68.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.