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%)
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 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.
- In the past 5 years ETRN always reported a positive cash flow from operatings.
1.2 Ratios
- ETRN has a worse Return On Assets (3.33%) than 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.
- With a Return On Invested Capital value of 4.60%, ETRN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- ETRN had an Average Return On Invested Capital over the past 3 years of 5.32%. This is significantly below the industry average of 21.94%.
| 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
- ETRN's Profit Margin of 28.51% is fine compared to the rest 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.
- 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 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.
- 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.
- 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.
- ETRN has a Debt/Equity ratio of 4.26. This is a high value indicating a heavy dependency on external financing.
- ETRN has a Debt to Equity ratio of 4.26. This is amonst the worse of the industry: ETRN underperforms 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.
- With a Current ratio value of 0.63, ETRN is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
- 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 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.
- The Earnings Per Share has been decreasing by -3.69% on average over the past years.
- The Revenue has decreased by -0.72% in the past 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
- 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 27.32, 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 the industry average as 60.00% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. ETRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 |
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 the industry average as 68.10% of the companies are valued more expensively.
| 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
- ETRN has a Yearly Dividend Yield of 4.83%, which is a nice return.
- ETRN's Dividend Yield is a higher than the industry average which is at 3.75.
- ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| 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.
- The dividend of ETRN decreased 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)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%.