Business Analysis of DTE Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of DTE Energy

DTE ENERGY

Business Overview

DTE Energy Company engages in the utility operations. The company's Electric segment generates, purchases, distributes, and sells electricity to approximately 2.2 million residential, commercial, and industrial customers in southeastern Michigan. It generates electricity through fossil-fuel, hydroelectric pumped storage, and nuclear plants, as well as wind and other renewable assets. This segment owns and operates approximately 690 distribution substations and 438,000 line transformers. Its Gas segment engages in the purchase, storage, transportation, distribution, and sale of natural gas to approximately 1.3 million residential, commercial, and industrial customers in Michigan, as well as the sale of storage and transportation capacity. This segment has approximately 19,000 miles of distribution mains; 1,149,000 service pipelines; and 1,297,000 active meters, as well as owns approximately 2,000 miles of transmission pipelines. The company's Gas Storage and Pipelines segment owns natural gas storage fields, and lateral and gathering pipeline systems, as well as has ownership interests in interstate pipelines serving the Midwest, Ontario, and northeast markets. Its Power and Industrial Projects segment provides metallurgical coke; pulverized coal and petroleum coke to the steel, pulp and paper, and other industries; and power, steam, chilled water, and wastewater treatment services, as well as supplies compressed air to industrial customers. This segment also owns and operates 4 renewable generating plants with a capacity of 191 MWs; and 11 reduced emissions fuel facilities, as well as develops landfill gas recovery systems. The company's Energy Trading segment engages in power and gas marketing and trading; structured transactions; and the optimization of contracted natural gas pipeline transportation and storage positions. DTE Energy Company was founded in 1903 and is based in Detroit, Michigan.

DTE Energy

DTE Energy


R&P Rank: 280
Sector: Utilities
Industry:Electric Utilities
H.Q Location:Michigan
Website: www.dteenergy.com
Company Address:
ONE ENERGY PLAZA, DETROIT MI 48226
Ph:313-235-4000

Business Analysis of DTE Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how DTE Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by DTE Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of DTE Energy with an interactive chart.

  1. Revenue Growth: DTE Energy reported a revenue growth of 2.8% year-on-year during 2016. Electric Utilities Industry grew at 0.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, DTE Energy spent 73.7% of its total revenues on COGS. Electric Utilities industry average (COGS share of revenue) in the same period was 64.7%
  3. R&D share of Revenues: DTE Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: DTE Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, DTE Energy spent 7.3% of its total revenues on Inventories. Electric Utilities industry average Inventory spending in the same period was 7.6%
  6. Accounts Payable share of Revenues: As a percentage of revenue, DTE Energy invested 11.5% of its total revenues on Accounts Payable (A/P) Electric Utilities industry average Accounts Payable investment in the same period was 11.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, DTE Energy invested 14.3% of its total revenues on Accounts Receivable (A/R). Electric Utilities industry average Accounts Receivable investment in the same period was 14.5%
  8. PP&E share of Revenues: As a percentage of revenue, DTE Energy invested 185.6% of its total revenues on Property, Plants, and Equipments (PP&E). Electric Utilities industry average PPE investment in the same period was 286.7%
  9. Intangibles share of Revenues: As a percentage of revenue, DTE Energy invested 29.4% of its total revenues on Intangibles. Electric Utilities industry average Intangibles investment in the same period was 22.3%
  10. Net Margins: DTE Energy Net Margins in the year 2016 were 8.2%. Electric Utilities industry average Net Margins in the same period were 3.3%

Sector and Industry Association of DTE Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

DTE Energy is associated with Utilities Sector and Electric Utilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of DTE Energy

With $10.6 billion revenues, DTE Energy ranked number 10 of all the companies in the US Electric Utilities industry. There were a total of 33 public companies in the US Electric Utilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Electric Utilities industry by revenues during 2016 were:

  1. Southern ($19.9 billion)
  2. American Electric Power ($16.4 billion)
  3. NextEra Energy ($16.2 billion)
  4. FirstEnergy ($14.6 billion)
  5. AES ($13.6 billion)
  6. NRG Energy ($12.4 billion)
  7. Edison International ($11.9 billion)
  8. Dominion Resources ($11.7 billion)
  9. Entergy ($10.8 billion)
  10. DTE Energy ($10.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of DTE Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of dte-energy

Edison International (EIX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Edison International with $12 billion revenues in the year 2016 was the number 7 Electric Utilities company. Read this report to know the top competitors of Edison International and identify growth and cost optimization opportunities of Edison International

Dominion Resources (D) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dominion Resources Inc with $12 billion revenues in the year 2016 was the number 8 Electric Utilities company. Read this report to know the top competitors of Dominion Resources and identify growth and cost optimization opportunities of Dominion Resources

Entergy (ETR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Entergy Corp with $11 billion revenues in the year 2016 was the number 9 Electric Utilities company. Read this report to know the top competitors of Entergy and identify growth and cost optimization opportunities of Entergy

Eversource Energy (ES) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Eversource Energy with $8 billion revenues in the year 2016 was the number 11 Electric Utilities company. Read this report to know the top competitors of Eversource Energy and identify growth and cost optimization opportunities of Eversource Energy

CenterPoint Energy (CNP) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CenterPoint Energy Inc with $8 billion revenues in the year 2016 was the number 12 Electric Utilities company. Read this report to know the top competitors of CenterPoint Energy and identify growth and cost optimization opportunities of CenterPoint Energy

PPL (PPL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PPL Corp with $8 billion revenues in the year 2016 was the number 13 Electric Utilities company. Read this report to know the top competitors of PPL and identify growth and cost optimization opportunities of PPL

Revenues Analysis

DTE Energy (DTE) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of DTE Energy Co (DTE) from 2012 to 2016. DTE Energy generated a total of $10.6 billion revenues during 2016. DTE Energy reported a revenue growth of 2.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

DTE Energy (DTE) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of DTE Energy Co (DTE) from 2002 to 2016. DTE Energy generated a total of $10.6 billion revenues during 2016. DTE Energy reported a revenue growth of 2.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

DTE Energy (DTE) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of DTE Energy Co (DTE) revenue growth with Electric Utilities industry growth during the last five years from 2012 to 2016. DTE Energy reported a revenue growth of 2.8% year-over-year during 2016. The Electric Utilities industry growth was 0.2% year-over-year during 2016. DTE Energy growth was faster than the industry during 2016.

Profit Analysis

DTE Energy (DTE) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of DTE Energy Co (DTE) from 2012 to 2016. DTE Energy reported a total net income of $868 million during 2016. DTE Energy generated a total of $10.6 billion revenues during 2016. DTE Energy net profit margin was 8.2% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.