NYSE:DTE

Stock Analysis Report

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Executive Summary

DTE Energy Company engages in the utility operations.


Snowflake Analysis

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has DTE Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DTE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.9%

DTE

1.5%

US Integrated Utilities

3.8%

US Market


1 Year Return

-12.8%

DTE

-3.9%

US Integrated Utilities

9.7%

US Market

Return vs Industry: DTE underperformed the US Integrated Utilities industry which returned -3.9% over the past year.

Return vs Market: DTE underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

DTEIndustryMarket
7 Day4.9%1.5%3.8%
30 Day10.4%8.0%11.4%
90 Day-2.7%-9.0%6.8%
1 Year-9.7%-12.8%-0.7%-3.9%12.1%9.7%
3 Year14.4%3.7%20.3%8.2%36.2%27.2%
5 Year76.9%51.1%66.4%32.4%63.7%45.4%

Price Volatility Vs. Market

How volatile is DTE Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is DTE Energy undervalued compared to its fair value and its price relative to the market?

19.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DTE ($113.04) is trading above our estimate of fair value ($91.52)

Significantly Below Fair Value: DTE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DTE is good value based on its PE Ratio (19.2x) compared to the Integrated Utilities industry average (20x).

PE vs Market: DTE is poor value based on its PE Ratio (19.2x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: DTE is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: DTE is overvalued based on its PB Ratio (1.8x) compared to the US Integrated Utilities industry average (1.8x).


Next Steps

Future Growth

How is DTE Energy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTE's forecast earnings growth (6.3% per year) is above the savings rate (2.2%).

Earnings vs Market: DTE's earnings (6.3% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: DTE's earnings are forecast to grow, but not significantly.

Revenue vs Market: DTE's revenue (0.4% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: DTE's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DTE's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has DTE Energy performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTE has high quality earnings.

Growing Profit Margin: DTE's current net profit margins (9.1%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: DTE's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: DTE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DTE had negative earnings growth (-4.4%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-6.1%).


Return on Equity

High ROE: DTE's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is DTE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DTE's short term assets ($3.5B) do not cover its short term liabilities ($4.0B).

Long Term Liabilities: DTE's short term assets ($3.5B) do not cover its long term liabilities ($27.3B).


Debt to Equity History and Analysis

Debt Level: DTE's debt to equity ratio (154.6%) is considered high.

Reducing Debt: DTE's debt to equity ratio has increased from 103.7% to 154.6% over the past 5 years.

Debt Coverage: DTE's debt is not well covered by operating cash flow (16%).

Interest Coverage: DTE's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is DTE Energy's current dividend yield, its reliability and sustainability?

3.58%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: DTE's dividend (3.58%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: DTE's dividend (3.58%) is low compared to the top 25% of dividend payers in the US market (4.48%).


Stability and Growth of Payments

Stable Dividend: DTE's dividends per share have been stable in the past 10 years.

Growing Dividend: DTE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.3%), DTE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DTE's dividends in 3 years are forecast to be covered by earnings (62.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Jerry Norcia (56yo)

1

Tenure

US$8,228,339

Compensation

Mr. Gerardo Norcia, also known as Jerry, serves as President & Chief Executive Officer of DTE Energy at DTE Electric Company since July 01, 2019. He serves as President and Chief Executive Officer of Dte E ...


CEO Compensation Analysis

Compensation vs Market: Jerry's total compensation ($USD8.23M) is about average for companies of similar size in the US market ($USD11.58M).

Compensation vs Earnings: Jerry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gerard Anderson
Executive Chairman & Advisor To CEO8.75yrsUS$12.15m0.32% $69.8m
Gerardo Norcia
President1yrUS$8.23m0.095% $20.7m
David Meador
Vice Chairman & Chief Administrative Officer6.42yrsUS$4.35m0.094% $20.5m
Peter Oleksiak
Executive Officer0.083yrUS$4.18m0.027% $5.9m
Trevor Lauer
President & COO of DTE Electric Company4.17yrsUS$3.11m0.016% $3.4m
David Ruud
Senior VP & CFO0.25yrno data0.020% $4.3m
Angela Buk
Chief Investment Officer3.75yrsno datano data
Mark Rolling
VP, Controller & Chief Accounting Officer1.25yrsno data0.0068% $1.5m
Steven Ambrose
Chief Information Officer and Vice President9yrsno datano data
Barbara Tuckfield
Director - Investor Relationsno datano datano data

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: DTE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gerard Anderson
Executive Chairman & Advisor To CEO8.75yrsUS$12.15m0.32% $69.8m
Gerardo Norcia
President1yrUS$8.23m0.095% $20.7m
Faye Nelson
Vice Presidentno datano datano data
James Vandenberghe
Independent Director14yrsUS$271.99k0.0010% $226.4k
David Brandon
Independent Director10yrsUS$270.31k0.00052% $113.2k
Ruth Shaw
Lead Independent Director1.08yrsUS$279.96k0.0029% $622.7k
Charles McClure
Independent Director8.33yrsUS$259.99k0.00052% $113.2k
Gail McGovern
Independent Director17yrsUS$256.31kno data
Mark Murray
Independent Director11.17yrsUS$271.31k0.00052% $113.2k
Valerie Williams
Independent Director2.08yrsUS$275.16k0.00052% $113.2k

8.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: DTE's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DTE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Top Shareholders

Company Information

DTE Energy Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: DTE Energy Company
  • Ticker: DTE
  • Exchange: NYSE
  • Founded: 1903
  • Industry: Multi-Utilities
  • Sector: Utilities
  • Market Cap: US$21.773b
  • Shares outstanding: 192.61m
  • Website: https://newlook.dteenergy.com

Number of Employees


Location

  • DTE Energy Company
  • One Energy Plaza
  • Detroit
  • Michigan
  • 48226-1279
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1996
DGYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1996
0I6QLSE (London Stock Exchange)YesCommon StockGBUSDJan 1996
DGYETLX (Eurotlx)YesCommon StockITEURJan 1996
DTYNYSE (New York Stock Exchange)JR SUB DB 2016 FUSUSDDec 2016
D1TE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

DTE Energy Company engages in the utility operations. The company’s Electric segment generates, purchases, distributes, and sells electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets. This segment owns and operates approximately 700 distribution substations and 445,200 line transformers. The company’s Gas segment purchases, stores, transports, distributes, and sells natural gas to approximately 1.3 million residential, commercial, and industrial customers throughout Michigan; and sells storage and transportation capacity. This segment has approximately 20,000 miles of distribution mains; 1,305,000 service pipelines; and 1,285,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. Its Gas Storage and Pipelines segment owns natural gas storage fields, lateral and gathering pipeline systems, and compression and surface facilities, as well as has ownership interests in interstate pipelines serving the Gulf Coast, Midwest, Ontario, and northeast markets. The company’s Power and Industrial Projects segment offers metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam and chilled water production, and wastewater treatment services, as well as supplies compressed air to industrial customers. It also owns and operates 5 renewable generating plants with a capacity of 217 MWs; 23 gas recovery sites; and 10 reduced emissions fuel facilities. Its Energy Trading segment engages in power, natural gas, and environmental marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. The company was founded in 1903 and is headquartered in Detroit, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 02:15
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.