EQUITRANS MIDSTREAM CORP (ETRN) Stock Fundamental Analysis
USA - 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 210 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 quite expensive at the moment. 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.
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.
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.
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 has a Return On Invested Capital of 4.60%. This is in the lower half of the industry: ETRN underperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETRN is significantly below the industry average of 21.78%.
| 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
With a decent Profit Margin value of 28.51%, ETRN is doing good in the industry, outperforming 74.76% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of ETRN has declined.
ETRN's Gross Margin of 86.95% is amongst the best of the industry. ETRN outperforms 92.38% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ETRN has a better debt/assets ratio than last year.
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'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.
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.
ETRN has a Debt to FCF ratio of 13.59. This is in the lower half of the industry: ETRN underperforms 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 worse Debt to Equity ratio (4.26) than 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
ETRN has a Current 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.
ETRN has a Current ratio of 0.63. This is amonst the worse of the industry: ETRN underperforms 81.43% of its industry peers.
A Quick Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
The Quick ratio of ETRN (0.63) is worse than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
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.
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%.
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
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.80, ETRN is valued correctly.
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 26.13, 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 22.35.
| 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.
ETRN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ETRN is cheaper than 68.10% of the companies in the same industry.
| 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
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 6.83.
ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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%.