📊 DTM Key Takeaways
Is DT Midstream, Inc. (DTM) a Good Investment?
DT Midstream demonstrates strong operational fundamentals with 26.7% revenue growth and exceptional profitability margins (49.4% operating, 35.5% net). The company generates substantial free cash flow of $441M with healthy conversion from operations, supported by a stable debt structure and adequate interest coverage of 3.6x.
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 and operational expansion
- Exceptional operating margin of 49.4% reflecting efficient cost management and pricing power in natural gas transmission
- Robust free cash flow generation of $441M with 35.5% FCF margin enabling capital deployment and shareholder returns
- Conservative leverage with debt-to-equity of 0.70x providing financial flexibility
- Operating cash flow of $867M demonstrates strong underlying business quality beyond reported earnings
- 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
- Tight liquidity position with current ratio of 1.07x leaves limited cushion for operational disruptions
- Modest interest coverage ratio of 3.6x provides limited debt service cushion if operational performance deteriorates
- Relatively low ROE of 9.3% and ROA of 4.4% suggest capital efficiency challenges despite high margins
- High insider activity with 22 Form 4 filings in 90 days warrants monitoring for potential insider concerns
- Declining net income of -2.9% YoY despite revenue growth indicates margin compression or cost pressures emerging
- 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
- Operating margin sustainability and any deterioration trends
- Free cash flow consistency and capital allocation priorities
- Debt levels and refinancing needs given $3.3B long-term debt obligation
- Operating cash flow growth relative to revenue growth
- Current ratio improvement to strengthen liquidity position
- 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 35.5% 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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $224.0M | $91.0M | $0.93 |
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 BUY from Claude (BUY) and ChatGPT (BUY) with 77% 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 and operational expansion. Exceptional operating margin of 49.4% reflecting efficient cost management and pricing power in natural gas transmission. 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: Tight liquidity position with current ratio of 1.07x leaves limited cushion for operational disruptions. Modest interest coverage ratio of 3.6x provides limited debt service cushion if operational performance deteriorates. 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 $1.2B.
Does DTM pay dividends?
DT Midstream, Inc. pays dividends, with $324.0M 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 $4.30.
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 April 2026, DT Midstream, Inc. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is DTM stock overvalued or undervalued?
Valuation metrics for DTM: ROE of 9.3% (sector avg: 14%), net margin of 35.5% (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 BUY 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 $867.0M, with capital expenditures of $426.0M. FCF margin is 35.5%.
How does DTM compare to other Energy stocks?
Vs Energy sector averages: Net margin 35.5% (avg: 12%), ROE 9.3% (avg: 14%), current ratio 1.07 (avg: 1.3).