DT Midstream, Inc. (DTM) stock analysis

P/E above its 5-year median

DT Midstream's P/E of 25.9 is above its own 5-year median of 17.6.

P/E above the industry

DT Midstream's P/E of 25.9 is above the Gas Production and Distribution median of 17.3.

EV/EBITDA above its 5-year median

DT Midstream's EV/EBITDA of 16.4 is above its 5-year median of 14.9.

P/B above the industry

DT Midstream's price-to-book of 2.52 is above the Gas Production and Distribution median of 2.10.

Trading above fair value

The share price of $119.00 is above our fair value estimate of $85.15.

Margin of safety under 20%

The price is 39.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 10.6% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 4.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 16.9% over the last twelve months, against a 5-year average of 7.2% a year.

Growing slower than the industry

Revenue grew 13.4% over the last twelve months; the Gas Production and Distribution median is 13.6%.

Guidance raised

DT Midstream raised its 2026 Adjusted EBITDA outlook on Oct 29, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 9.9% over the last twelve months and averaged 8.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 6.2%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

DT Midstream's return on equity of 9.9% is below the Gas Production and Distribution median of 12.1%.

Earnings grew over 5 years

Net income grew 7.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 35.4% over the last twelve months, against a 5-year average of 38.0%.

Net margin above the industry

DT Midstream's net margin of 35.4% is above the Gas Production and Distribution median of 13.1%.

High debt

Debt is 68.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 68.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 28.6% of total debt.

Interest not well covered

Operating income covers interest expense 4.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.16 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 1.83; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

DT Midstream paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; DT Midstream yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 5 fiscal years.

Covered by earnings

Dividends take 73.2% of net income.

Covered by free cash flow

Dividends take 64.7% of free cash flow.