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
- ETRN had positive earnings in the past year.
- ETRN had a positive operating cash flow in the past year.
- In multiple years ETRN reported negative net income over the last 5 years.
- ETRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ETRN has a Return On Assets of 3.33%. This is in the lower half of the industry: ETRN underperforms 63.33% of its industry peers.
- ETRN has a Return On Equity of 22.40%. This is in the better half 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.
- Measured over the past 3 years, the Average Return On Invested Capital for ETRN is significantly below the industry average of 21.83%.
| 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
- 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.
- ETRN's Operating Margin has declined in the last couple of years.
- ETRN has a better Gross Margin (86.95%) than 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.
- 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.
- 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's Debt to FCF ratio of 13.59 is on the low side compared to the rest of the industry. ETRN is outperformed by 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's Current ratio of 0.63 is on the low side compared to the rest of the industry. ETRN is outperformed by 81.43% of its industry peers.
- A Quick Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
- ETRN has a Quick ratio of 0.63. This is in the lower half of the industry: ETRN underperforms 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.
- 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.
- 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
- Based on estimates for the next years, ETRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.69% on average per year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- 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.
- When comparing the Price/Earnings ratio of ETRN to the average of the S&P500 Index (27.30), we can say ETRN is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 13.86, the valuation of ETRN can be described as correct.
- Based on the Price/Forward Earnings ratio, ETRN is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
- When comparing the Price/Forward Earnings ratio of ETRN to the average of the S&P500 Index (24.04), 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
- 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 3.91.
- ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| 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
- 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%
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-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
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%.