DT Midstream Inc. Common Stock (DTM)

FairStock Score: 50/100 — MIXED

Key Financials

Strengths

• Generates $156 million in annual free cash flow (1.1% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 27.3% demonstrates strong top-line momentum
• Attractive 2.7% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($67) with negative 99% margin of safety—limited downside protection
• Altman Z-Score of 1.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

DT Midstream Inc. Common Stock is a mid-cap energy company valued at $13.6 billion. The business generates $1.2 billion in annual revenue with a 8.9% net margin and $156 million in free cash flow. From a quality standpoint, DT shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.8 warrants caution. On valuation, the stock is trading at a premium 31.0x earnings, with trades above its Graham Number with a negative 99% margin. Growth dynamics show revenue growing at 27.3% and profit growth of 52.0%. The 2.7% dividend yield adds an income component for patient holders. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

DT's 27% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. With $156 million in annual free cash flow (1.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer