EQUITRANS MIDSTREAM CORP (ETRN) Fundamental Analysis & Valuation

NYSE:ETRN • US2946001011

Current stock price

12.42 USD
+0.07 (+0.57%)
At close:
12.5 USD
+0.08 (+0.64%)
After Hours:

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

5

1. ETRN Profitability Analysis

1.1 Basic Checks

  • In the past year ETRN was profitable.
  • In the past year ETRN had a positive cash flow from operations.
  • 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.
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

  • 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 22.60%.
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

  • 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 Operating Margin of 47.47%. This is amongst the best in the industry. ETRN outperforms 86.19% of its industry peers.
  • ETRN's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 86.95%, ETRN belongs to the top of the industry, outperforming 92.38% of the companies in the same industry.
  • 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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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.
  • ETRN has about the same amout of shares outstanding than it did 1 year ago.
  • 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'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.
  • Looking at the Debt to FCF ratio, with a value of 13.59, ETRN is doing worse than 60.48% of the companies in the same industry.
  • ETRN has a Debt/Equity ratio of 4.26. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of ETRN (4.26) is worse 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

  • 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 worse Current ratio (0.63) than 81.43% of its industry peers.
  • A Quick Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.63, ETRN is doing worse than 76.19% of the companies in the same industry.
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

  • The Earnings Per Share has grown by an impressive 63.64% over the past year.
  • 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.
  • 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

  • The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
  • ETRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
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

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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 ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.86, ETRN is valued a bit cheaper.
  • ETRN is valuated correctly with a Price/Forward Earnings ratio of 13.86.
  • 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 rather cheap valuation when compared to the S&P500 average which is at 37.39.
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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETRN indicates a somewhat cheap valuation: ETRN is cheaper than 68.10% of the companies listed 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%

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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 3.23.
  • 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

  • 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%
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 Fundamental Analysis 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 for ETRN stock?

ChartMill assigns a valuation rating of 3 / 10 to EQUITRANS MIDSTREAM CORP (ETRN). This can be considered as Overvalued.


Can you provide the profitability details for EQUITRANS MIDSTREAM CORP?

EQUITRANS MIDSTREAM CORP (ETRN) has a profitability rating of 5 / 10.


What is the financial health of EQUITRANS MIDSTREAM CORP (ETRN) stock?

The financial health rating of EQUITRANS MIDSTREAM CORP (ETRN) is 1 / 10.


How sustainable is the dividend of EQUITRANS MIDSTREAM CORP (ETRN) stock?

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