Analysis Brief
Last updated: Sep 17, 2025 13:30:21
Introduction
DTE Energy Company 2021 Series (DTG) is a regulated electric utility that generates revenue from electricity distribution and related services.
Quarterly Reports
| Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| Revenue (USD M) | 3 419 | 4 440 | 3 424 | 2 839 |
| Net Income (USD M) | -0.006 | 445 | -40 | 478 |
| EPS (USD) | 1.11 | 2.15 | -5.36 | 2.29 |
| Op Income (USD M) | 427 | 624 | 536 | 517 |
| Op Cash Flow (USD M) | 11 | 1 020 | 1 084 | 739 |
| Free Cash Flow (USD M) | 884 | 1 020 | 273 | 2 831 |
| Div Yield % | 3.22 | 3.22 | 3.22 | 3.22 |
Revenue rose sharply in Q1 2025 then fell back to Q2 2025 levels, indicating seasonal demand swings.
Net income swung from a small loss in Q2 2025 to strong profit in Q1 2025 and Q3 2024, showing earnings volatility.
Operating cash flow was weak in Q2 2025 but robust in earlier quarters, suggesting short-term cash pressure.
Free cash flow remained positive throughout, supporting dividend sustainability.
Consistent dividend yield (~3.2 %) adds income appeal despite earnings fluctuations.
Fundamental Ratios
| Ratio | Value |
|---|---|
| P/E | 19.41 |
| Div Yield % | 3.22 |
| Curr Ratio | 0.94 |
| Debt/Equity | 2.05 |
| ROE % | 12.3 |
| Int Coverage | 2.11 |
| P/B | 2.39 |
The P/E of ~19 suggests modest valuation relative to earnings.
High dividend yield enhances total return but the current ratio below 1 signals limited short-term liquidity.
Leverage is elevated (Debt/Equity ≈ 2), yet interest coverage above 2 indicates the firm can meet interest obligations.
Return on equity around 12 % reflects decent profitability on shareholders’ capital.
Price-to-book near 2.4 aligns with typical utility multiples.
Conclusion
DTG exhibits typical utility characteristics: stable cash generation, attractive dividend yield, and regulated revenue streams. Earnings and cash flow show seasonal volatility, and the balance sheet carries notable leverage with a current ratio under 1, implying some liquidity risk. Valuation metrics are in line with sector norms, making the stock reasonably priced for income-focused investors. However, potential investors should monitor cash flow trends and leverage levels to gauge the sustainability of dividends and overall financial health.