DTE Energy Company (DTE) Stock Analysis
Score DCyclical · Grade F · Bullish
$143.11
$157.06
+9.7%
0/10
F
Cyclical
Investment Thesis
Low quantitative score: Low quality, stretched valuation, or poor risk/reward.
For New Investors
Quantitative score: weak
For Current Holders
Quantitative score: low
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $157.06 (+9.7%). Slightly undervalued. (Methods diverge significantly. Conservative estimate shown.)
PEG-Based EPS
$186.04
FCF DCF Model
$186.04
EV/EBITDA
$12.15
Blended Fair Value
$157.06
Confidence
Low
Methods
PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
36/120 points
Low Quality
ROE (3Y Avg)
12.2%
ROIC-WACC Spread
-0.9%
D/E Ratio
2.2x
Current Ratio
0.8x
Interest Coverage
2x
FCF Positive Years
0/3
Quality Flags
- ROIC spread: -0.9pp (got 0/25 pts)
- FCF positive only 0/3 years (0/20 pts)
- Leverage: D/E 2.2x (4/15 pts)
- Interest coverage: 2.2x (6/10 pts)
- Liquidity: Current Ratio 0.80 (6/10 pts)
- Volatile gross margins: std dev 26.6pp (need <3.0pp)
Market Sentiment
Wall Street Consensus
$157.50
+10.1% Upside
14 analysts
Range: $151.00 — $170.00
Rating: Buy
Our model is more cautious than Wall Street.
Trend & Technical
Price ($143.01) is 3.7% above SMA 200 ($137.86). Bullish trend confirmed.
Tech Score 73/100 — Strong technical setup. Trend, momentum, and positioning aligned bullish.
Risk & Reward
Asymmetry Ratio
1.36:1
Expected Return
-6.4%
Bull Upside
+63.4%
Bear Downside
-46.8%
Poor asymmetry: 1.36:1 ratio. Risk exceeds potential reward.
Verdict: Unfavorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of DTE?
Based on our multi-method conviction analysis, the estimated fair value of DTE Energy Company (DTE) is $157.06. This is calculated by blending PEG-Based EPS (conservative), FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is low.
Is DTE a buy, sell, or hold?
DTE currently has a AVOID rating with a conviction score of 0/10. Low quantitative score: Low quality, stretched valuation, or poor risk/reward. Quantitative score: weak.
Is DTE a high-quality stock?
DTE Energy Company has a quality grade of F (36/120 points), rated as Low Quality. Key metrics include ROE of 12.2%, ROIC-WACC spread of -0.9%, and D/E ratio of 2.2x.
What type of stock is DTE?
DTE is classified as a "cyclical" in our framework. High dividend: 3.1%, Mature growth: -8.2%, High debt: D/E 2.2x, High revenue volatility: 29.4% std dev, Dividend paying: 3.1%
What do Wall Street analysts say about DTE?
14 Wall Street analysts have a consensus price target of $157.50 for DTE, representing +10.1% upside. Targets range from $151.00 to $170.00. The consensus recommendation is "Buy". Our model is more cautious than Wall Street.
What are the risks of investing in DTE?
The risk/reward asymmetry ratio for DTE is 1.36:1, rated as Unfavorable. Poor asymmetry: 1.36:1 ratio. Risk exceeds potential reward. The expected return is -6.4%, with bull case upside of +63.4% and bear case downside of -46.8%.
What is the current trend for DTE?
DTE is in a bullish trend. Price ($143.01) is 3.7% above SMA 200 ($137.86). Bullish trend confirmed. The technical score is 73/100.
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Last updated: May 19, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.