DTE Energy Profitability Analysis
| DTB Stock | USD 21.37 0.38 1.81% |
Net Income | First Reported 2001-09-30 | Previous Quarter 312 M | Current Value 322 M | Quarterly Volatility 114.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.25 | 0.3395 |
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| Net Profit Margin | 0.0609 | 0.1096 |
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| Operating Profit Margin | 0.1 | 0.176 |
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| Pretax Profit Margin | 0.0725 | 0.1229 |
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| Return On Assets | 0.0297 | 0.0312 |
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| Return On Equity | 0.13 | 0.1264 |
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For DTE Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DTE Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DTE Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DTE Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DTE Energy over time as well as its relative position and ranking within its peers.
DTE |
DTE Energy's Revenue Breakdown by Earning Segment
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Is Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DTE Energy. If investors know DTE will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DTE Energy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Equity 0.0752 |
The market value of DTE Energy is measured differently than its book value, which is the value of DTE that is recorded on the company's balance sheet. Investors also form their own opinion of DTE Energy's value that differs from its market value or its book value, called intrinsic value, which is DTE Energy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DTE Energy's market value can be influenced by many factors that don't directly affect DTE Energy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DTE Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if DTE Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DTE Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
DTE Energy Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DTE Energy's current stock value. Our valuation model uses many indicators to compare DTE Energy value to that of its competitors to determine the firm's financial worth. DTE Energy is rated # 5 in return on equity category among its peers. It also is rated # 5 in revenue category among its peers totaling about 169,481,382,979 of Revenue per Return On Equity. At present, DTE Energy's Return On Equity is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the DTE Energy's earnings, one of the primary drivers of an investment's value.DTE Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
DTE Energy |
| = | 0.0752 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
DTE Energy |
| = | 12.74 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
DTE Revenue vs Competition
DTE Energy is rated # 5 in revenue category among its peers. Market size based on revenue of Utilities industry is currently estimated at about 81.96 Billion. DTE Energy retains roughly 12.74 Billion in revenue claiming about 16% of Utilities industry.
DTE Energy Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DTE Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DTE Energy will eventually generate negative long term returns. The profitability progress is the general direction of DTE Energy's change in net profit over the period of time. It can combine multiple indicators of DTE Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -67 M | -63.6 M | |
| Operating Income | 2.2 B | 1.5 B | |
| Income Before Tax | 1.6 B | 1 B | |
| Total Other Income Expense Net | -677 M | -710.9 M | |
| Net Income | 1.4 B | 889.4 M | |
| Income Tax Expense | 169 M | 171.7 M | |
| Interest Income | 646.3 M | 511.3 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.2 B | |
| Net Income From Continuing Ops | 1.2 B | 1 B | |
| Non Operating Income Net Other | 44.9 M | 47.1 M | |
| Change To Netincome | 29.7 M | 28.2 M | |
| Net Income Per Share | 6.76 | 3.62 | |
| Income Quality | 2.30 | 2.04 | |
| Net Income Per E B T | 0.89 | 0.71 |
DTE Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DTE Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DTE Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DTE Energy's important profitability drivers and their relationship over time.
DTE Energy Profitability Trends
DTE Energy profitability trend refers to the progression of profit or loss within a business. An upward trend means that DTE Energy's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is DTE Energy's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
DTE Energy Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between DTE Energy different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards DTE Energy in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down DTE Energy's future profitability.
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Use DTE Energy in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DTE Energy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DTE Energy will appreciate offsetting losses from the drop in the long position's value.DTE Energy Pair Trading
DTE Energy Pair Trading Analysis
The ability to find closely correlated positions to DTE Energy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DTE Energy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DTE Energy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DTE Energy to buy it.
The correlation of DTE Energy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DTE Energy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DTE Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DTE Energy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your DTE Energy position
In addition to having DTE Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Pharmaceutical Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Pharmaceutical Products theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Pharmaceutical Products Theme or any other thematic opportunities.
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Check out Investing Opportunities. For information on how to trade DTE Stock refer to our How to Trade DTE Stock guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
To fully project DTE Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DTE Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DTE Energy's income statement, its balance sheet, and the statement of cash flows.