EQUITRANS MIDSTREAM CORP (ETRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETRN - US2946001011 - Common Stock
12.42 USD
+0.07 (+0.57%)
12.5 USD
+0.08 (+0.64%)
Overall ETRN gets a fundamental rating of 3 out of 10. We evaluated ETRN against 208 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ETRN while its profitability can be described as average. ETRN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ETRN was profitable.
ETRN had a positive operating cash flow in the past year.
In multiple years ETRN reported negative net income over the last 5 years.
In the past 5 years ETRN always reported a positive cash flow from operatings.
1.2 Ratios
ETRN's Return On Assets of 3.33% is on the low side compared to the rest of the industry. ETRN is outperformed by 63.33% of its industry peers.
The Return On Equity of ETRN (22.40%) is better than 73.81% of its industry peers.
ETRN's Return On Invested Capital of 4.60% is on the low side compared to the rest of the industry. ETRN is outperformed by 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETRN is significantly below the industry average of 20.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 22.4% | ||
| ROIC | 4.6% |
ROA(3y)-4.45%
ROA(5y)-2.44%
ROE(3y)-21.93%
ROE(5y)-17.37%
ROIC(3y)5.32%
ROIC(5y)5.81%
1.3 Margins
ETRN has a better Profit Margin (28.51%) than 74.76% of its industry peers.
ETRN's Profit Margin has improved in the last couple of years.
The Operating Margin of ETRN (47.47%) is better than 86.19% of its industry peers.
ETRN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 86.95%, ETRN belongs to the best of the industry, outperforming 92.38% of the companies in the same industry.
ETRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.47% | ||
| PM (TTM) | 28.51% | ||
| GM | 86.95% |
OM growth 3Y-6.38%
OM growth 5Y-5.82%
PM growth 3Y5.27%
PM growth 5Y13.69%
GM growth 3Y-0.96%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
ETRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ETRN has about the same amout of shares outstanding than it did 1 year ago.
ETRN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ETRN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that ETRN is in the distress zone and has some risk of bankruptcy.
ETRN's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. ETRN is outperformed by 69.52% of its industry peers.
ETRN has a debt to FCF ratio of 13.59. This is a negative value and a sign of low solvency as ETRN would need 13.59 years to pay back of all of its debts.
ETRN has a worse Debt to FCF ratio (13.59) than 60.48% of its industry peers.
A Debt/Equity ratio of 4.26 is on the high side and indicates that ETRN has dependencies on debt financing.
ETRN has a Debt to Equity ratio of 4.26. This is amonst the worse of the industry: ETRN underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.26 | ||
| Debt/FCF | 13.59 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.71
WACC6.49%
2.3 Liquidity
A Current Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.63, ETRN is doing worse than 81.43% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
ETRN's Quick ratio of 0.63 is on the low side compared to the rest of the industry. ETRN is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.64% over the past year.
ETRN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.69% yearly.
Looking at the last year, ETRN shows a decrease in Revenue. The Revenue has decreased by -0.72% in the last year.
ETRN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.39% yearly.
EPS 1Y (TTM)63.64%
EPS 3Y-11.86%
EPS 5Y-3.69%
EPS Q2Q%4.55%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y-2.65%
Revenue growth 5Y-1.39%
Sales Q2Q%-3.21%
3.2 Future
ETRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.69% yearly.
Based on estimates for the next years, ETRN will show a small growth in Revenue. The Revenue will grow by 5.55% on average per year.
EPS Next Y-15.38%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
EPS Next 5Y10.69%
Revenue Next Year5.96%
Revenue Next 2Y6.21%
Revenue Next 3Y3.41%
Revenue Next 5Y5.55%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.80, the valuation of ETRN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ETRN is on the same level as its industry peers.
ETRN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.86, the valuation of ETRN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETRN indicates a slightly more expensive valuation: ETRN is more expensive than 60.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ETRN to the average of the S&P500 Index (23.79), we can say ETRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETRN is valued a bit more expensive than 73.33% of the companies in the same industry.
68.10% of the companies in the same industry are more expensive than ETRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.33%
EPS Next 3Y1.5%
5. Dividend
5.1 Amount
ETRN has a Yearly Dividend Yield of 4.83%, which is a nice return.
Compared to an average industry Dividend Yield of 3.83, ETRN pays a bit more dividend than its industry peers.
ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
The dividend of ETRN decreases each year by -30.14%.
ETRN has been paying a dividend for over 5 years, so it has already some track record.
ETRN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-30.14%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
80.84% of the earnings are spent on dividend by ETRN. This is not a sustainable payout ratio.
DP80.84%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
12.42
+0.07 (+0.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners4.79%
Inst Owner Change-98.48%
Ins Owners5.92%
Ins Owner Change0%
Market Cap5.43B
Revenue(TTM)1.38B
Net Income(TTM)394.01M
Analysts74.29
Price Target13.9 (11.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend0.74
Dividend Growth(5Y)-30.14%
DP80.84%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.68%
Min EPS beat(2)-6.05%
Max EPS beat(2)55.4%
EPS beat(4)2
Avg EPS beat(4)23.21%
Min EPS beat(4)-18.89%
Max EPS beat(4)62.36%
EPS beat(8)3
Avg EPS beat(8)12.82%
EPS beat(12)3
Avg EPS beat(12)-11.84%
EPS beat(16)3
Avg EPS beat(16)-13.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)1.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-5.17%
Revenue beat(16)3
Avg Revenue beat(16)-5.05%
PT rev (1m)0%
PT rev (3m)22.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 | ||
| P/S | 3.93 | ||
| P/FCF | 9.47 | ||
| P/OCF | 5.6 | ||
| P/B | 3.09 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 13.13 |
EPS(TTM)0.9
EY7.25%
EPS(NY)0.9
Fwd EY7.21%
FCF(TTM)1.31
FCFY10.56%
OCF(TTM)2.22
OCFY17.85%
SpS3.16
BVpS4.02
TBVpS1.75
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 22.4% | ||
| ROCE | 5.82% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.07% | ||
| OM | 47.47% | ||
| PM (TTM) | 28.51% | ||
| GM | 86.95% | ||
| FCFM | 41.47% |
ROA(3y)-4.45%
ROA(5y)-2.44%
ROE(3y)-21.93%
ROE(5y)-17.37%
ROIC(3y)5.32%
ROIC(5y)5.81%
ROICexc(3y)5.39%
ROICexc(5y)5.89%
ROICexgc(3y)6.02%
ROICexgc(5y)6.58%
ROCE(3y)6.73%
ROCE(5y)7.36%
ROICexgc growth 3Y-5.64%
ROICexgc growth 5Y-10.86%
ROICexc growth 3Y-5.41%
ROICexc growth 5Y-8.91%
OM growth 3Y-6.38%
OM growth 5Y-5.82%
PM growth 3Y5.27%
PM growth 5Y13.69%
GM growth 3Y-0.96%
GM growth 5Y-0.42%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.26 | ||
| Debt/FCF | 13.59 | ||
| Debt/EBITDA | 7.47 | ||
| Cap/Depr | 114.25% | ||
| Cap/Sales | 28.65% | ||
| Interest Coverage | 1.52 | ||
| Cash Conversion | 96.65% | ||
| Profit Quality | 145.43% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.26 |
F-Score5
WACC6.49%
ROIC/WACC0.71
Cap/Depr(3y)103.58%
Cap/Depr(5y)159.7%
Cap/Sales(3y)25.84%
Cap/Sales(5y)33.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.64%
EPS 3Y-11.86%
EPS 5Y-3.69%
EPS Q2Q%4.55%
EPS Next Y-15.38%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
EPS Next 5Y10.69%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y-2.65%
Revenue growth 5Y-1.39%
Sales Q2Q%-3.21%
Revenue Next Year5.96%
Revenue Next 2Y6.21%
Revenue Next 3Y3.41%
Revenue Next 5Y5.55%
EBIT growth 1Y-13.11%
EBIT growth 3Y-8.86%
EBIT growth 5Y-7.13%
EBIT Next Year74.2%
EBIT Next 3Y24.78%
EBIT Next 5Y18.95%
FCF growth 1Y-30.51%
FCF growth 3Y-2.48%
FCF growth 5YN/A
OCF growth 1Y-13.89%
OCF growth 3Y-3.79%
OCF growth 5Y7.08%
EQUITRANS MIDSTREAM CORP / ETRN FAQ
Can you provide the ChartMill fundamental rating for EQUITRANS MIDSTREAM CORP?
ChartMill assigns a fundamental rating of 3 / 10 to ETRN.
Can you provide the valuation status for EQUITRANS MIDSTREAM CORP?
ChartMill assigns a valuation rating of 3 / 10 to EQUITRANS MIDSTREAM CORP (ETRN). This can be considered as Overvalued.
How profitable is EQUITRANS MIDSTREAM CORP (ETRN) stock?
EQUITRANS MIDSTREAM CORP (ETRN) has a profitability rating of 5 / 10.
What is the earnings growth outlook for EQUITRANS MIDSTREAM CORP?
The Earnings per Share (EPS) of EQUITRANS MIDSTREAM CORP (ETRN) is expected to decline by -15.38% in the next year.
Is the dividend of EQUITRANS MIDSTREAM CORP sustainable?
The dividend rating of EQUITRANS MIDSTREAM CORP (ETRN) is 5 / 10 and the dividend payout ratio is 80.84%.