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DT Midstream, Inc. (DTM)

Company Dividend Discount ModelIndustry: Oil & Gas MidstreamSector: Energy

Valuation Snapshot

Stable Growth$27.89 - $40.14$33.87
Multi-Stage$48.30 - $52.86$50.54
Blended Fair Value$42.20
Current Price$113.06
Upside-62.67%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018
DPS0.00%0.00%2.742.582.395.480.000.000.000.000.000.00
YoY Growth--6.46%7.79%-56.35%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.84%4.21%4.84%10.09%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)403.00
(-) Cash Dividends Paid (M)312.00
(=) Cash Retained (M)91.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)80.6050.3830.23
Cash Retained (M)91.0091.0091.00
(-) Cash Required (M)-80.60-50.38-30.23
(=) Excess Retained (M)10.4040.6360.78
(/) Shares Outstanding (M)102.07102.07102.07
(=) Excess Retained per Share0.100.400.60
LTM Dividend per Share3.063.063.06
(+) Excess Retained per Share0.100.400.60
(=) Adjusted Dividend3.163.453.65
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$27.89$33.87$40.14
Upside / Downside-75.33%-70.04%-64.49%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)403.00398.97394.98391.03387.12383.25394.75
Payout Ratio77.42%79.94%82.45%84.97%87.48%90.00%92.50%
Projected Dividends (M)312.00318.92325.67332.25338.67344.92365.14

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)289.37292.32295.28
Year 2 PV (M)268.12273.62279.17
Year 3 PV (M)248.19255.87263.70
Year 4 PV (M)229.55239.06248.87
Year 5 PV (M)212.13223.17234.67
PV of Terminal Value (M)3,682.503,874.264,073.92
Equity Value (M)4,929.855,158.305,395.61
Shares Outstanding (M)102.07102.07102.07
Fair Value$48.30$50.54$52.86
Upside / Downside-57.28%-55.30%-53.24%

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