Buffett Brain · Research note
Score updated 28 Oct 2026 · analysis from 10 Sept 2026
DTE· Utilities
DTE Energy
DTE Energy's financial health and weak returns on capital make it a poor fit for a Buffett-style investment.
Buffett fit
Weak fit
Owner
22
Durability
82
Management
35
Price
24
Score updated 28 Oct 2026 · analysis from 10 Sept 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Utilities stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning DTE Energy privately would mean managing a capital-intensive business with limited growth prospects.
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The 10-year outlook for DTE Energy is stable but uninspiring. Regulatory frameworks provide some protection, but the low of 3.8% suggests limited competitive advantage.
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Management's appears suboptimal. The share count CAGR of 1.77% suggests slight dilution, and the yield is negligible at 0.08%.
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At a of 23.3 and an earnings yield of 4.29%, DTE Energy's valuation is stretched for its growth profile.
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- The 5-year price target and the return it implies
- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 12.3 million electric customers and 1.3 million gas customers provide a stable revenue base.
- 2EPS CAGR of 10.83% over 5 years shows some earnings growth.
- 3Profitable in each of the last 5 years, indicating operational stability.
- 4Dividend yield of 3.17% offers some income to investors.
Concerns
5- 1 of 3.8% is below the sector's top-quintile cutoff of 8.9%, indicating weak capital efficiency.
- 2Net debt/EBITDA of 6.54 reflects high , posing financial risk.
- 3Interest coverage ratio of 1.9 suggests vulnerability to rising rates or earnings declines.
- 4Negative yield of -3.38% highlights poor cash generation.
Price history
$133+17.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
DTE Energy operates in utility sectors, providing electricity and natural gas to millions in Michigan. The Electric segment serves 2.3 million customers, while the Gas segment serves 1.3 million. Despite a large customer base, the is only 12.5%, indicating limited . The business model relies heavily on regulated returns, which cap profitability but provide stability.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 27, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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