Dte Energy Stock Fair Value – Michigan PSC Endorses DTE Energy’s Reliability Improvements with Rate Order
December 11, 2023
☀️Trending News
DTE ($NYSE:DTE) Energy is a Michigan-based energy company that provides electricity and natural gas to customers in Southeast and Central Michigan. Recently, the Michigan Public Service Commission (MPSC) has given their approval to a rate order which will help DTE Energy improve their reliability and service for customers. This rate order will back up the company’s plans to invest in modernizing and strengthening their energy infrastructure. The MPSC’s approval of the rate order shows their commitment to supporting DTE Energy’s efforts to improve reliability and reduce outages.
It also shows their acknowledgment of the need for energy companies to invest in their infrastructure in order to ensure safe and reliable service for customers. With this approval, DTE Energy will be able to continue to fulfill their mission of providing reliable and affordable energy solutions to their customers.
Stock Price
On Wednesday, the Michigan Public Service Commission (MPSC) issued a rate order approving DTE Energy‘s reliability improvement plans. This move was met with positivity in the market as the company’s stock opened at $106.9 and closed at $107.3, up by 0.6% from last closing price of 106.7. The MPSC rate order sets out a plan to enhance and upgrade DTE Energy’s electric distribution system, which will improve reliability and reduce customer outages, as well as give customers greater control over their energy usage. It will also help DTE Energy meet Michigan’s energy goals, which include improving customer service and reducing carbon emissions.
The rate order also provides financial support to DTE Energy for its infrastructure improvements, allowing the company to invest in new projects and create jobs in the Michigan economy. It also supports the company’s commitment to making Michigan more efficient and sustainable while saving customers money on their energy bills. Overall, the MPSC rate order is a positive step for DTE Energy and its customers, as it provides financial support and improved reliability that will benefit both parties in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dte Energy. More…
| Total Revenues | Net Income | Net Margin |
| 13.83k | 1.24k | 8.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dte Energy. More…
| Operations | Investing | Financing |
| 2.94k | -3.92k | 994 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dte Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.73k | 32.88k | 52.6 |
Key Ratios Snapshot
Some of the financial key ratios for Dte Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 1.5% | 15.5% |
| FCF Margin | ROE | ROA |
| -6.2% | 12.6% | 3.1% |
Analysis – Dte Energy Stock Fair Value
At GoodWhale, we recently conducted an analysis of DTE ENERGY‘s financials. Our proprietary Valuation Line was used to calculate the intrinsic value of DTE ENERGY share at around $97.1. The current trading price of DTE ENERGY stock is $107.3, a fair price which is overvalued by 10.5%. More…
Peers
The company operates through two segments: Electric and Gas. The Electric segment generates, purchases, distributes, and sells electricity to residential, commercial, and industrial customers in southeastern Michigan. The Gas segment purchases, transports, stores, distributes, and sells natural gas to residential, commercial, and industrial customers in Michigan. As of December 31, 2018, DTE Energy Co operated 10 coal-fired generating stations with a total capacity of 6,879 megawatts; 29 natural gas-fired generating stations with a total capacity of 4,473 megawatts; 71 wind turbines with a total capacity of 132 megawatts; 7 solar arrays with a total capacity of 35 megawatts; and 1 nuclear power plant with a total capacity of 1,944 megawatts. The company’s competitors include CMS Energy Corp, OGE Energy Corp, and Xcel Energy Inc.
– CMS Energy Corp ($NYSE:CMS)
CMS Energy Corporation is an American utility company based in Jackson, Michigan, with its principal subsidiary, Consumers Energy, serving Michigan. CMS Energy also owns and operates two power generation businesses, one in Michigan and one in Hawaii.
The company has a market capitalization of $16.81 billion as of 2022 and a return on equity of 12.15%. CMS Energy is engaged in the generation, transmission, and distribution of electricity and natural gas. The company also owns and operates power generation facilities in Michigan and Hawaii.
– OGE Energy Corp ($NYSE:OGE)
Duke Energy Corp is a publicly traded electric power holding company in the United States. The company has a market capitalization of $73.9 billion as of March 2021 and a return on equity of 18.7%. Duke Energy is the largest electric power holding company in the United States, with regulated utilities in six states and a commercial businesses in 47 countries. The company’s regulated utility operations serve approximately 7.7 million electric customers in the Carolinas, Florida, Indiana, Ohio and Kentucky. Duke Energy’s commercial businesses include wholesale energy trading and marketing, natural gas pipelines, storage and gathering, and international energy assets.
– Xcel Energy Inc ($NASDAQ:XEL)
Xcel Energy Inc. is a publicly traded company that provides electricity and natural gas services in the United States and Canada. The company has a market capitalization of $35.77 billion as of 2022 and a return on equity of 9.4%. The company operates in eight states and serves more than 3.6 million customers. Xcel Energy is the largest provider of electricity in Colorado and the second-largest provider of electricity in Minnesota. The company also provides natural gas service in Colorado, Minnesota, and Wisconsin.
Summary
The Michigan Public Service Commission (PSC) has approved a rate order to support DTE Energy‘s electric system reliability improvements. These upgrades will help the company meet the growing electricity demands of Michigan customers. Additionally, this rate order is expected to help DTE Energy increase its earnings and provide a potential boost to its stock price. Therefore, investors may want to consider DTE Energy as a potential opportunity to reap the rewards of this large scale upgrade project.
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