EQUITRANS MIDSTREAM CORP (ETRN) Fundamental Analysis & Valuation

NYSE:ETRN • US2946001011

12.42 USD
+0.07 (+0.57%)
At close: Jul 19, 2024
12.5 USD
+0.08 (+0.64%)
After Hours: 7/19/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ETRN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

Taking everything into account, ETRN scores 3 out of 10 in our fundamental rating. ETRN was compared to 207 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. ETRN Profitability Analysis

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.
  • In the past 5 years ETRN always reported a positive cash flow from operatings.
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 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.
  • ETRN's Return On Equity of 22.40% is fine compared to the rest of the industry. ETRN outperforms 73.81% of its industry peers.
  • The Return On Invested Capital of ETRN (4.60%) is worse than 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 22.17%.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 -50

1.3 Margins

  • The Profit Margin of ETRN (28.51%) is better than 74.76% of its industry peers.
  • In the last couple of years the Profit Margin of ETRN has grown nicely.
  • With an excellent Operating Margin value of 47.47%, ETRN belongs to the best of the industry, outperforming 86.19% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ETRN has declined.
  • ETRN has a better Gross Margin (86.95%) than 92.38% of its industry peers.
  • In the last couple of years the Gross Margin of ETRN has remained more or less at the same level.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100

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ROAROEROICOperating and Profit MarginShow most profitable peers

1

2. ETRN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETRN is destroying value.
  • Compared to 1 year ago, ETRN has about the same amount of shares outstanding.
  • ETRN has a better debt/assets ratio than last year.
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.
  • The Altman-Z score of ETRN (0.26) is worse than 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.
  • ETRN has a Debt/Equity ratio of 4.26. This is a high value indicating a heavy dependency on external financing.
  • ETRN has a worse Debt to Equity ratio (4.26) than 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 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.
  • ETRN has a worse Current ratio (0.63) than 81.43% of its industry peers.
  • ETRN has a Quick Ratio of 0.63. This is a bad value and indicates that ETRN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of ETRN (0.63) is worse than 76.19% of its industry peers.
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ETRN Growth Analysis

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.
  • The Earnings Per Share has been decreasing by -3.69% on average over the past years.
  • ETRN shows a decrease in Revenue. In the last year, the revenue decreased by -0.72%.
  • The Revenue has been decreasing by -1.39% on average over the past years.
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.
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

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Find the best growth stocksShow best growing peers

3

4. ETRN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.80, the valuation of ETRN can be described as correct.
  • ETRN's Price/Earnings is on the same level as the industry average.
  • ETRN is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 13.86 indicates a correct valuation of ETRN.
  • Based on the Price/Forward Earnings ratio, ETRN is valued a bit more expensive than 60.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ETRN to the average of the S&P500 Index (24.57), we can say ETRN is valued slightly cheaper.
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 10 20 30

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. ETRN Dividend Analysis

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 3.39.
  • Compared to an average S&P500 Dividend Yield of 1.82, ETRN pays a better dividend.
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 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

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ETRN Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)07-30
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 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
Graham NumberN/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%
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 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%

EQUITRANS MIDSTREAM CORP / ETRN FAQ

What is the ChartMill fundamental rating of EQUITRANS MIDSTREAM CORP (ETRN) stock?

ChartMill assigns a fundamental rating of 3 / 10 to ETRN.


What is the valuation status of EQUITRANS MIDSTREAM CORP (ETRN) stock?

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 valuation of EQUITRANS MIDSTREAM CORP based on its PE and PB ratios?

The Price/Earnings (PE) ratio for EQUITRANS MIDSTREAM CORP (ETRN) is 13.8 and the Price/Book (PB) ratio is 3.09.


Can you provide the dividend sustainability for ETRN stock?

The dividend rating of EQUITRANS MIDSTREAM CORP (ETRN) is 5 / 10 and the dividend payout ratio is 80.84%.