DTE Energy (DTE)
Utilities · $28.8B market cap · SEC CIK 0000936340
ahead of 16% of the S&P 500 · #24 of 31 in Utilities
Next reports on Feb 15, 2027, after the close, with analysts expecting $2.28 in earnings per share.
52-week range $119.68 to $155.75. 11% below its 52-week high and 16% above its low.
The case for DTE
- Pays a 3.6% dividend while you wait.
- Moves less than the market (beta 0.33).
The case against
- Expensive for its growth: 21.0× earnings, where 0% a year of growth plus a 3.6% dividend would justify about 13×.
- Revenue fell 15.5% year over year.
- Long-term debt of $25.3B would take 7 years of operating cash flow to repay.
- Operating profit covers its interest bill only 2.7 times.
- Current liabilities exceed current assets (ratio 0.62).
- Net margin of 7% is thinner than 93% of Utilities companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Utilities companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 27 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 26 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 57 |
| Momentumhow the price has behaved lately | 51 |
| Stabilityhow violently it moves, what it owes and what it pays you | 51 |
- Capital spending is missing from its filings, so free cash flow cannot be worked out. Operating cash flow stands in for the cash test, against a stricter bar.
- Each factor except momentum is half fixed thresholds, half rank among the 31 Utilities companies.
The financials
Revenue growth
Is the business growing? No, shrinking
| Last 12 months | −15.5% |
|---|---|
| Over 5 years | +8.8% a year |
| FY2025 revenue | $15.8B (+27%) |
Free cash flow
Is it generating real cash? Can't tell: no capital spending in its filings
| FY2025 operating cash flow | $3.4B |
|---|---|
| Of profit, before capital spending | 233% |
Its filings do not give capital spending, so free cash flow cannot be worked out. Operating cash flow, which is before that spending, is shown instead, and the score judges it against a stricter bar.
Profit margins
Is profitability improving? No, slipping
| Gross margin | n/a |
|---|---|
| Operating margin | 12% |
| Net margin, FY24 → FY25 → now | 11.3% → 9.2% → 7.0% |
Debt vs. cash
Is the balance sheet healthy? Stretched
| Cash | $208M |
|---|---|
| Long-term debt | $25.3B |
| Net debt | $25.1B |
| Years to repay | 7.4 yrs |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 21.0× |
|---|---|
| Fair P/E for its growth | 13× |
| Forward P/E | 16.5× |
| EV / EBITDA | 13.8× |
At 21.0× earnings it trades above the 13× that 0% a year of growth plus a 3.6% dividend would justify. As a utility it is judged on earnings alone: it borrows to build, so its free cash flow says little about its price.
The financials, five years deep
Pulled from DTE Energy's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $15.8B | $12.5B | $12.7B | $19.2B | $15.0B |
| Change on the year | +27% | −2% | −34% | +28% | — |
| Profit margins | |||||
| Operating margin | 15.0% | 16.8% | 17.6% | 9.1% | 10.0% |
| Net margin | 9.2% | 11.3% | 11.0% | 5.6% | 6.1% |
| Debt vs. cash | |||||
| Cash | $208M | $24.0M | $26.0M | $33.0M | $28.0M |
| Long-term debt | $25.3B | $22.1B | $19.7B | $18.1B | $17.5B |
| Net cash (debt) | −$25.1B | −$22.1B | −$19.7B | −$18.1B | −$17.5B |
Risk factors DTE lists in its 10-K
- The Registrants are subject to rate regulation
- Changes to Michigan's electric retail access program could negatively impact the Registrants' financial performance
- Environmental laws and liability may be costly
- The Clean Energy Standard, Renewable Portfolio Standard and energy waste reduction may affect the Registrants' business and federal and state fuel standards may affect DTE Energy's non-utility investments
- DTE Energy's ability to utilize tax credits may be limited
- Construction and capital improvements to the Registrants' power facilities and DTE Energy's distribution systems subject them to risk
- Operation of a nuclear facility subjects the Registrants to risk
- The supply and/or price of energy commodities and/or related services may impact the Registrants' financial results
- The supply and/or price of other industrial raw and finished inputs and/or related services may impact the Registrants' financial results
- Weather significantly affects operations
- Unplanned outages at our power plants and other generating assets may be costly
- A work interruption may adversely affect the Registrants
- DTE Energy may not achieve the carbon emissions goals of its electric and gas utilities
- DTE Energy's non-utility businesses may not perform to its expectations
- Adverse changes in the Registrants' credit ratings may negatively affect them
- Poor investment performance of pension and other postretirement benefit plan assets and other factors impacting benefit plan costs could unfavorably impact the Registrants' liquidity and results of operations
- The Registrants' ability to access capital markets is important
- Emerging technologies may have a material adverse effect on the Registrants
- DTE Energy's participation in energy trading markets subjects it to risk
- Regional, national, and international economic conditions, and market developments can have an unfavorable impact on the Registrants
- If DTE Energy's goodwill becomes impaired, it may be required to record a charge to earnings
- The Registrants may not be fully covered by insurance
- The Registrants' businesses have safety risks
- Threats of cyber incidents, physical security, and terrorism could affect the Registrants' business
- Failure to maintain the security of personally identifiable information could adversely affect the Registrants
- Failure to attract and retain key executive officers and other skilled professional and technical employees could have an adverse effect on the Registrants
- DTE Energy relies on cash flows from subsidiaries