* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $68 M
Debt : $3,521 M
EBITDA : $770 M
Net Debt (Debt - Cash): $3,453 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Transportation and Warehousing
Industry: Pipeline Transportation of Crude Oil
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 24.78
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $243 M
Average Revenue: $772 M
Revenue Converted To Free Cash Flow (%): 31%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 355.15%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $981 M
Revenue 4 Years Ago (2020-12-31): $754 M
Last 5 Years Average Revenue Growth: 6%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $98 M
Share Count 5 Years Ago (2020-12-31): $97 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $4.39
Trailing 12-Month Earnings Per Share (EPS): $3.84
Average Earnings Per Share (EPS): $4.12
Dividend Per Share (DPS): $3
Payout Ratio: 76%
Dividend Yield: 3%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 8%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $102
52-Week Low: $71
Threshold Price (15% Above 52-Week Low): $82
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,506 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above DT Midstream Inc (DTM) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 17.72, Fair Value PE 12, Industry Based PE is 13 and Growth based PE is 10. Based on these all values average assigned is 13.18.
Value-Trades has assined P/E value 13.18. Since an average (Current Year EPS + Next Year EPS) earning per share is $4.115.
The fair value of DT Midstream Inc (DTM) stock should be (13.18 x $4.115) = $54.24
