DT Midstream (DT Midstream) Predictability Rank

View and export this data going back to 2021. Start your Free Trial

What is DT Midstream Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

DT Midstream Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

DT Midstream Predictability Rank Related Terms

Thank you for viewing the detailed overview of DT Midstream's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

DT Midstream (DT Midstream) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » DT Midstream Inc (NYSE:DTM) » Definitions » Predictability Rank

Comparable Companies

ENLC FRO AM ETRN PAGP STNG CEQP HEP INSW GLNG TSX:ENB EPD WMB ET LNG OKE KMI MPLX TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

500 Woodward Avenue, Suite 2900, Detroit, MI, USA, 48226-1279

Website

https://www.dtmidstream.com

DT Midstream Inc is an owner, operator, and developer of natural gas midstream interstate and intrastate pipelines; storage and gathering systems; and compression, treatment, and surface facilities. It provides multiple, integrated natural gas services to customers through interstate pipelines, intrastate pipelines, storage systems, lateral pipelines and related treatment plants and compression and surface facilities, and gathering systems and related treatment plants and compression and surface facilities. The segments of the group are Pipeline and Gathering. It generates revenue from pipeline, storage, and gathering systems, substantially all of which are located in the Midwestern U.S., Eastern Canada, Northeastern U.S., and Gulf Coast regions.

Executives

Jeffrey A Jewell	officer: Executive V.P., CFO	ONE ENERGY PLAZA, DETROIT MI 48226
Peter I Tumminello	director	TEN PEACHTREE PLACE, ATLANTA GA 30309
Skaggs Robert C Jr	director, officer: Executive Chairman	5151 SAN FELIPE, SUITE 2500, HOUSTON TX 77056
Elaine M Pickle	director	ONE ENERGY PLAZA, DETROIT MI 48226
David Slater	director, officer: President and CEO	ONE ENERGY PLAZA, DETROIT MI 48226
Angela N Archon	director	294 ROUTE 100, BUILDING 1, SOMERS NY 10589
Melissa Cox	officer: Sr. VP Admin.	500 WOODWARD AVE, SUITE 2900, DETROIT MI 48226
Wright Iii Lassiter	director	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Dwayne Andree Wilson	director	6700 LAS COLINAS BOULEVARD, IRVING TX 75039
Stephen W Baker	director	5400 WESTHEIMER COURT, HOUSTON TX 77056
Redmond Richard L Jr	officer: E.V.P., Chief Admin. Off.	ONE ENERGY PLAZA, DETROIT MI 48226
Wendy Ellis	officer: E.V.P., Gen Counsel & Corp Sec	ONE ENERGY PLAZA, 1610 WCB, DETROIT MI 48226
Christopher Zona	officer: E.V.P., Chief Oper. Off.	ONE ENERGY PLAZA, DETROIT MI 48226
Dte Energy Co	10 percent owner	ONE ENERGY PLAZA, DETROIT MI 48226