📊 DTM Key Takeaways
Is DT Midstream, Inc. (DTM) a Good Investment?
Despite strong revenue growth of 26.7% YoY and excellent operating margins of 49.4%, DT Midstream faces critical financial stress with interest coverage of just 1.0x—indicating the company barely covers interest expenses from operating income. Net income declined 2.9% YoY despite revenue growth, and extremely poor returns on equity (2.7%) and assets (1.3%) signal capital inefficiency in a capital-intensive business model that leaves no margin for error.
DT Midstream shows strong core fundamentals with very high operating and net margins, solid operating cash generation, and free cash flow that fully supports ongoing investment needs. Revenue growth is strong, but the slight decline in net income and only moderate interest coverage suggest the business is fundamentally healthy rather than exceptional.
Why Buy DT Midstream, Inc. Stock? DTM Key Strengths
- Strong revenue growth of 26.7% YoY indicating market demand
- Excellent operating margin of 49.4% and net margin of 38.7% showing operational efficiency
- Robust free cash flow of $202M with 60.1% FCF margin providing debt service capacity
- Moderate debt-to-equity ratio of 0.70x within acceptable leverage range
- High profitability with 49.4% operating margin and 35.5% net margin
- Strong cash generation with $867.00M operating cash flow and $441.00M free cash flow
- Balanced leverage profile with 0.70x debt-to-equity and adequate liquidity above 1.0x current ratio
DTM Stock Risks: DT Midstream, Inc. Investment Risks
- Dangerously low interest coverage ratio of 1.0x leaves virtually no margin for operational disruption or rate reduction
- Net income declined 2.9% YoY despite 26.7% revenue growth indicating cost pressures or margin compression
- Extremely poor returns on equity (2.7%) and assets (1.3%) suggest capital structure is not generating acceptable returns for stakeholder risk
- Limited cash position of $150M relative to $3.3B long-term debt creates vulnerability
- Tight liquidity with current ratio of only 1.26x provides minimal operational flexibility
- Net income declined 2.9% year over year despite strong revenue growth, which may indicate rising costs or mix pressure
- Interest coverage of 3.6x is acceptable but not especially strong for a capital-intensive business
- Low cash balance of $54.00M limits near-term financial flexibility if operating conditions weaken
Key Metrics to Watch
- Interest coverage ratio trend—must improve above 1.5x to reduce financial distress risk
- Net income growth reconciliation—explain cost inflation eroding revenue growth benefits
- Return on equity trajectory—monitor if improving toward regulated utility benchmarks of 8-12%
- Operating cash flow sustainability—confirm $280M is repeatable and not inflated
- Interest coverage and long-term debt trend
- Free cash flow consistency relative to capital expenditures
DT Midstream, Inc. (DTM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 60.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
DTM Profit Margin, ROE & Profitability Analysis
DTM vs Energy Sector: How DT Midstream, Inc. Compares
How DT Midstream, Inc. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DT Midstream, Inc. Stock Overvalued? DTM Valuation Analysis 2026
Based on fundamental analysis, DT Midstream, Inc. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DT Midstream, Inc. Balance Sheet: DTM Debt, Cash & Liquidity
DTM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: DT Midstream, Inc.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.94 reflects profitable operations.
DTM Revenue Growth, EPS Growth & YoY Performance
DTM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $303.0M | $108.0M | $1.06 |
| Q3 2025 | $248.0M | $88.0M | $0.90 |
| Q2 2025 | $244.0M | $96.0M | $0.98 |
| Q1 2025 | $240.0M | $97.0M | $0.99 |
| Q3 2024 | $234.0M | $88.0M | $0.90 |
| Q2 2024 | $224.0M | $91.0M | $0.93 |
| Q1 2024 | $220.0M | $81.0M | $0.84 |
| Q3 2023 | $234.0M | $91.0M | $0.94 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DT Midstream, Inc. Dividends, Buybacks & Capital Allocation
DTM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for DT Midstream, Inc. (CIK: 0001842022)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DTM
What is the AI rating for DTM?
DT Midstream, Inc. (DTM) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DTM's key strengths?
Claude: Strong revenue growth of 26.7% YoY indicating market demand. Excellent operating margin of 49.4% and net margin of 38.7% showing operational efficiency. ChatGPT: High profitability with 49.4% operating margin and 35.5% net margin. Strong cash generation with $867.00M operating cash flow and $441.00M free cash flow.
What are the risks of investing in DTM?
Claude: Dangerously low interest coverage ratio of 1.0x leaves virtually no margin for operational disruption or rate reduction. Net income declined 2.9% YoY despite 26.7% revenue growth indicating cost pressures or margin compression. ChatGPT: Net income declined 2.9% year over year despite strong revenue growth, which may indicate rising costs or mix pressure. Interest coverage of 3.6x is acceptable but not especially strong for a capital-intensive business.
What is DTM's revenue and growth?
DT Midstream, Inc. reported revenue of $336.0M.
Does DTM pay dividends?
DT Midstream, Inc. pays dividends, with $83.0M distributed to shareholders in the trailing twelve months.
Where can I find DTM SEC filings?
Official SEC filings for DT Midstream, Inc. (CIK: 0001842022) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DTM's EPS?
DT Midstream, Inc. has a diluted EPS of $1.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DTM a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, DT Midstream, Inc. has a HOLD rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DTM stock overvalued or undervalued?
Valuation metrics for DTM: ROE of 2.7% (sector avg: 14%), net margin of 38.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DTM stock in 2026?
Our dual AI analysis gives DT Midstream, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is DTM's free cash flow?
DT Midstream, Inc.'s operating cash flow is $280.0M, with capital expenditures of $78.0M. FCF margin is 60.1%.
How does DTM compare to other Energy stocks?
Vs Energy sector averages: Net margin 38.7% (avg: 12%), ROE 2.7% (avg: 14%), current ratio 1.26 (avg: 1.3).