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. While ETRN is still in line with the averages on profitability rating, there are concerns on its financial health. ETRN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

5

1. ETRN Profitability Analysis

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.
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

  • Looking at the Return On Assets, with a value of 3.33%, ETRN is doing worse than 63.33% of the companies in the same industry.
  • 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.
  • The Average Return On Invested Capital over the past 3 years for ETRN is significantly below the industry average of 22.40%.
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

  • Looking at the Profit Margin, with a value of 28.51%, ETRN is in the better half of the industry, outperforming 74.76% of the companies in the same industry.
  • ETRN's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 47.47%, ETRN belongs to the top 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.
  • With an excellent Gross Margin value of 86.95%, ETRN belongs to the best 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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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.
  • 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 has a worse Altman-Z score (0.26) than 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 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.
  • Looking at the Debt to Equity ratio, with a value of 4.26, ETRN is doing worse than 90.00% of the companies in the same industry.
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.
  • The Current ratio of ETRN (0.63) is worse 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.
  • 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%.
  • 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

  • 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.
  • The Revenue is expected to grow by 5.55% on average over the next years.
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.
  • 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

  • ETRN is valuated correctly with a Price/Earnings ratio of 13.80.
  • ETRN's Price/Earnings ratio is in line with the industry average.
  • ETRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
  • With a Price/Forward Earnings ratio of 13.86, ETRN is valued correctly.
  • Based on the Price/Forward Earnings ratio, ETRN is valued a bit more expensive than 60.00% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.60. ETRN is valued slightly cheaper when compared to this.
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 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETRN indicates a slightly more expensive valuation: ETRN is more expensive than 73.33% of the companies listed in the same industry.
  • 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 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.
  • Compared to an average industry Dividend Yield of 3.40, ETRN pays a bit more dividend than its industry peers.
  • 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%.