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EQUITRANS MIDSTREAM CORP (ETRN) Stock Fundamental Analysis

NYSE:ETRN - New York Stock Exchange, Inc. - US2946001011 - Common Stock - Currency: USD

12.42  +0.07 (+0.57%)

After market: 12.5 +0.08 (+0.64%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ETRN. ETRN was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. While ETRN is still in line with the averages on profitability rating, there are concerns on its financial health. ETRN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

ETRN had positive earnings in the past year.
In the past year ETRN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ETRN reported negative net income in multiple years.
Each year in the past 5 years ETRN had a positive operating cash flow.
ETRN Yearly Net Income VS EBIT VS OCF VS FCFETRN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B

1.2 Ratios

The Return On Assets of ETRN (3.33%) is worse than 63.33% of its industry peers.
Looking at the Return On Equity, with a value of 22.40%, ETRN is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
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.
ETRN had an Average Return On Invested Capital over the past 3 years of 5.32%. This is significantly below the industry average of 23.79%.
Industry RankSector 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%
ETRN Yearly ROA, ROE, ROICETRN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50

1.3 Margins

ETRN has a Profit Margin of 28.51%. This is in the better half of the industry: ETRN outperforms 74.76% of its industry peers.
In the last couple of years the Profit Margin of ETRN has grown nicely.
ETRN has a better Operating Margin (47.47%) than 86.19% of its industry peers.
In the last couple of years the Operating Margin of ETRN has declined.
ETRN has a Gross Margin of 86.95%. This is amongst the best in the industry. ETRN outperforms 92.38% of its industry peers.
ETRN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
ETRN Yearly Profit, Operating, Gross MarginsETRN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ETRN is destroying value.
ETRN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ETRN has more shares outstanding
Compared to 1 year ago, ETRN has an improved debt to assets ratio.
ETRN Yearly Shares OutstandingETRN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
ETRN Yearly Total Debt VS Total AssetsETRN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

ETRN has an Altman-Z score of 0.26. This is a bad value and indicates that ETRN is not financially healthy and even has some risk of bankruptcy.
ETRN has a Altman-Z score of 0.26. This is in the lower half of the industry: ETRN underperforms 69.52% of its industry peers.
The Debt to FCF ratio of ETRN is 13.59, which is on the high side as it means it would take ETRN, 13.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ETRN (13.59) is worse than 60.48% of its industry peers.
ETRN has a Debt/Equity ratio of 4.26. This is a high value indicating a heavy dependency on external financing.
ETRN's Debt to Equity ratio of 4.26 is on the low side compared to the rest of the industry. ETRN is outperformed by 90.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.26
Debt/FCF 13.59
Altman-Z 0.26
ROIC/WACC0.71
WACC6.49%
ETRN Yearly LT Debt VS Equity VS FCFETRN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

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.
With a Quick ratio value of 0.63, ETRN is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.63
Quick Ratio 0.63
ETRN Yearly Current Assets VS Current LiabilitesETRN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

4

3. Growth

3.1 Past

ETRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.64%, which is quite impressive.
Measured over the past years, ETRN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.69% on average per year.
Looking at the last year, ETRN shows a decrease in Revenue. The Revenue has decreased by -0.72% in the last year.
Measured over the past years, ETRN shows a decrease in Revenue. The Revenue has been decreasing by -1.39% on average per year.
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

The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.55% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ETRN Yearly Revenue VS EstimatesETRN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
ETRN Yearly EPS VS EstimatesETRN Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 2

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.80 indicates a correct valuation of ETRN.
The rest of the industry has a similar Price/Earnings ratio as ETRN.
ETRN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.86 indicates a correct valuation of ETRN.
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.
ETRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.89.
Industry RankSector Rank
PE 13.8
Fwd PE 13.86
ETRN Price Earnings VS Forward Price EarningsETRN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

73.33% of the companies in the same industry are cheaper than ETRN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ETRN is valued a bit cheaper than 68.10% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.47
EV/EBITDA 13.13
ETRN Per share dataETRN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.33%
EPS Next 3Y1.5%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.83%, ETRN is a good candidate for dividend investing.
ETRN's Dividend Yield is a higher than the industry average which is at 6.51.
ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
Industry RankSector 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.
The dividend of ETRN decreased in the last 3 years.
Dividend Growth(5Y)-30.14%
Div Incr Years0
Div Non Decr Years2
ETRN Yearly Dividends per shareETRN Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

ETRN pays out 80.84% of its income as dividend. This is not a sustainable payout ratio.
DP80.84%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
ETRN Yearly Income VS Free CF VS DividendETRN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B -1B
ETRN Dividend Payout.ETRN Dividend Payout, showing the Payout Ratio.ETRN Dividend Payout.PayoutRetained Earnings

EQUITRANS MIDSTREAM CORP

NYSE:ETRN (7/19/2024, 8:04:00 PM)

After market: 12.5 +0.08 (+0.64%)

12.42

+0.07 (+0.57%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)04-30 2024-04-30/bmo
Earnings (Next)07-30 2024-07-30/amc
Inst Owners4.79%
Inst Owner Change-36.97%
Ins Owners5.92%
Ins Owner Change0%
Market Cap5.43B
Analysts74.29
Price Target13.9 (11.92%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-5.64%
ROICexcg 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 RankSector 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%