NYSE:DTE

Stock Analysis Report

Executive Summary

DTE Energy Company engages in the utility operations.

Rewards

PE ratio (20.9x) is below the Integrated Utilities industry average (20.9x)

Earnings are forecast to grow 9.32% per year

Pays a high and reliable dividend of 3.23%

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Established dividend payer with questionable 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

DTE

-0.7%

US Integrated Utilities

-0.3%

US Market


1 Year Return

4.8%

DTE

9.6%

US Integrated Utilities

18.6%

US Market

Return vs Industry: DTE underperformed the US Integrated Utilities industry which returned 9.6% over the past year.

Return vs Market: DTE underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

DTEIndustryMarket
7 Day0.2%-0.7%-0.3%
30 Day1.1%-1.2%2.2%
90 Day-2.8%-0.7%5.6%
1 Year8.0%4.8%13.3%9.6%21.1%18.6%
3 Year41.3%28.5%41.1%27.0%45.6%36.2%
5 Year78.8%52.9%64.5%32.4%71.1%52.2%

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?

20.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DTE ($125.23) is trading above our estimate of fair value ($94.87)

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 (20.9x) compared to the Integrated Utilities industry average (20.9x).

PE vs Market: DTE is poor value based on its PE Ratio (20.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: DTE is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: DTE is overvalued based on its PB Ratio (2.1x) compared to the US Integrated Utilities industry average (2.1x).


Next Steps

Future Growth

How is DTE Energy forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DTE's forecast earnings growth (9.3% per year) is above the savings rate (1.7%).

Earnings vs Market: DTE's earnings (9.3% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: DTE's revenue (3.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: DTE's revenue (3.3% 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 (10.6%).


Next Steps

Past Performance

How has DTE Energy performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DTE has high quality earnings.

Growing Profit Margin: DTE's current net profit margins (8.2%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: DTE's earnings have grown by 9.1% 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 (-10.1%) over the past year, making it difficult to compare to the Integrated Utilities industry average (-9.8%).


Return on Equity

High ROE: DTE's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is DTE Energy's financial position?


Financial Position Analysis

Short Term Liabilities: DTE's short term assets ($3.0B) do not cover its short term liabilities ($3.9B).

Long Term Liabilities: DTE's short term assets ($3.0B) do not cover its long term liabilities ($23.6B).


Debt to Equity History and Analysis

Debt Level: DTE's debt to equity ratio (144.7%) is considered high.

Reducing Debt: DTE's debt to equity ratio has increased from 107.8% to 144.7% over the past 5 years.

Debt Coverage: DTE's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: DTE's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

Inventory Level: DTE has a high level of physical assets or inventory.

Debt Coverage by Assets: DTE's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

3.23%

Current Dividend Yield


Upcoming Dividend Payment

Purchase DTE Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.4%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: DTE's dividend (3.23%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: DTE's dividend (3.23%) is low compared to the top 25% of dividend payers in the US market (3.7%).


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 (63.2%), 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 (60.4% payout ratio).


Next Steps

Management

What is the CEO of DTE Energy's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Jerry Norcia (56yo)

0.5yrs

Tenure

US$5,476,877

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 ($USD5.48M) is below average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: DTE's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: DTE's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$199,73309 Sep 19
Gary Torgow
EntityIndividual
Shares1,537
Max PriceUS$129.95
SellUS$1,310,00028 Aug 19
Mark Stiers
EntityIndividual
Shares10,000
Max PriceUS$131.00
SellUS$30,56828 May 19
Lisa Muschong
EntityIndividual
Shares237.22
Max PriceUS$128.86
SellUS$1,278,40023 May 19
Mark Stiers
EntityIndividual
Shares10,000
Max PriceUS$127.84
BuyUS$248,54009 May 19
Ruth Shaw
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,000
Max PriceUS$124.27
SellUS$187,87506 May 19
Peter Oleksiak
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares1,500
Max PriceUS$125.25
SellUS$208,14825 Feb 19
Trevor Lauer
EntityIndividual
Role
Unit President
President & COO of DTE Electric Company
Shares1,700
Max PriceUS$122.44
SellUS$313,40220 Feb 19
Lisa Muschong
EntityIndividual
Shares2,616
Max PriceUS$119.88

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dave Meador (62yo)

    Vice Chairman & Chief Administrative Officer

    • Tenure: 5.9yrs
    • Compensation: US$3.42m
  • Gerry Anderson (60yo)

    Executive Chairman & Advisor To CEO

    • Tenure: 8.3yrs
    • Compensation: US$10.99m
  • Trevor Lauer (55yo)

    President & COO of DTE Electric Company

    • Tenure: 3.7yrs
    • Compensation: US$2.40m
  • Peter Oleksiak (53yo)

    Senior VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$3.57m
  • Jerry Norcia (56yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$5.48m
  • Bruce Peterson (62yo)

    Senior VP & General Counsel

    • Tenure: 17.5yrs
    • Compensation: US$2.12m
  • Steve Ambrose

    Chief Information Officer and Vice President

    • Tenure: 8.5yrs
  • Mark Rolling (51yo)

    Vice President

    • Tenure: 0.8yrs
  • Angela Buk

    Chief Investment Officer

    • Tenure: 3.3yrs
  • Barbara Tuckfield

    Director - Investor Relations

    • Tenure: 0yrs

Board Members

  • James Vandenberghe (69yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$270.31k
  • Dave Brandon (67yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$270.31k
  • Gerry Anderson (60yo)

    Executive Chairman & Advisor To CEO

    • Tenure: 8.3yrs
    • Compensation: US$10.99m
  • Ruth Shaw (71yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$267.24k
  • W. Fountain (75yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$265.49k
  • Faye Nelson (66yo)

    Vice President

    • Tenure: 0yrs
  • Gail McGovern (67yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$255.31k
  • Mark Murray (64yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$262.66k
  • Jerry Norcia (56yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$5.48m
  • Valerie Williams (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$175.44k

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$23.823b
  • Shares outstanding: 192.11m
  • Website: https://newlook.dteenergy.com

Number of Employees


Location

  • DTE Energy Company
  • One Energy Plaza
  • Detroit
  • Michigan
  • 48226
  • 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
DTYNYSE (New York Stock Exchange)JR SUB DB 2016 FUSUSDDec 2016

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 indus ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:35
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.