DTE Energy Company (DTE)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable franchise at a sensible price. DTE Energy is a regulated electric and gas utility serving about 2.3 million electric customers in southeastern Michigan. Regulation can create a narrow moat: customers need power and gas, and returns are largely set by regulators. That is a real advantage. But the financials require caution. In fiscal 2025, the year ended 2025-12-31, net income was $1.5B and diluted EPS $7.03, versus $1.4B and $6.77 in fiscal 2024, the year ended 2024-12-31. That is only modest growth. More troubling, in fiscal Q1 2026, the quarter ended 2026-03-31, net income was $247.0M and diluted EPS $1.19, down from $445.0M and $2.14 in fiscal Q1 2025, the quarter ended 2025-03-31. That is a sharp year-over-year drop. The balance sheet carries high leverage: debt-to-equity 2.29, FairStock Altman Z-Score 0.63, and trailing free cash flow is -$1.5B, a FairStock FCF yield of -5.6%, because utilities invest heavily. FairStock ROE is 11.03%, but ROCE is only 2.77%, not attractive on total capital. At the close on 2026-10-13, the price was $128.33. FairStock calculations give a P/E of 20.31, P/B of 2.20, and a Graham Number of $91.78, so the margin of safety is -39.82%. The FairStock score is 45/100 and Piotroski F-Score is 5/9. Growth is slow: the Lynch category is slow grower, with profit 1.3% a year over five years. I would want a wider discount before calling this a bargain. A regulated utility can be a decent income holding, but at this price and with negative free cash flow, the margin of safety is thin.

In plain English: DTE Energy is a regulated electric and gas utility serving southeast Michigan. Demand for its services is steady, but recent quarterly profit fell from a year earlier and the company spends more cash than it brings in. At the 2026-10-13 close, the shares look expensive compared with its earnings, accounting value, and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer