HESS MIDSTREAM LP - CLASS A (HESM)
US4281031058 - Common Stock
We assign a fundamental rating of 5 out of 10 to HESM. HESM was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of HESM while its profitability can be described as average. HESM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HESM was profitable.
HESM had a positive operating cash flow in the past year.
Each year in the past 5 years HESM has been profitable.
In the past 5 years HESM always reported a positive cash flow from operatings.
1.2 Ratios
HESM's Return On Assets of 4.59% is in line compared to the rest of the industry. HESM outperforms 45.10% of its industry peers.
With an excellent Return On Equity value of 35.82%, HESM belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
The Return On Invested Capital of HESM (17.83%) is better than 89.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is significantly below the industry average of 29.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 35.82% | ||
| ROIC | 17.83% |
ROA(3y)2.27%
ROA(5y)1.91%
ROE(3y)30.61%
ROE(5y)32.35%
ROIC(3y)17.86%
ROIC(5y)15.44%
1.3 Margins
With a Profit Margin value of 13.06%, HESM perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
HESM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 60.85%, HESM belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
HESM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.85% | ||
| PM (TTM) | 13.06% | ||
| GM | N/A |
OM growth 3Y4.69%
OM growth 5Y2.68%
PM growth 3Y58.75%
PM growth 5Y-1.93%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HESM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HESM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HESM has more shares outstanding
HESM has a worse debt/assets ratio than last year.
2.2 Solvency
HESM has a debt to FCF ratio of 5.33. This is a neutral value as HESM would need 5.33 years to pay back of all of its debts.
HESM's Debt to FCF ratio of 5.33 is in line compared to the rest of the industry. HESM outperforms 58.82% of its industry peers.
A Debt/Equity ratio of 6.53 is on the high side and indicates that HESM has dependencies on debt financing.
HESM's Debt to Equity ratio of 6.53 is on the low side compared to the rest of the industry. HESM is outperformed by 93.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | N/A |
ROIC/WACC2.25
WACC7.93%
2.3 Liquidity
HESM has a Current Ratio of 0.70. This is a bad value and indicates that HESM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.70, HESM is doing worse than 76.47% of the companies in the same industry.
A Quick Ratio of 0.70 indicates that HESM may have some problems paying its short term obligations.
HESM's Quick ratio of 0.70 is on the low side compared to the rest of the industry. HESM is outperformed by 69.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.26% over the past year.
Measured over the past years, HESM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.48% on average per year.
The Revenue has grown by 11.43% in the past year. This is quite good.
Measured over the past years, HESM shows a quite strong growth in Revenue. The Revenue has been growing by 13.60% on average per year.
EPS 1Y (TTM)16.26%
EPS 3Y16.85%
EPS 5Y10.48%
EPS Q2Q%10.53%
Revenue 1Y (TTM)11.43%
Revenue growth 3Y7.29%
Revenue growth 5Y13.6%
Sales Q2Q%4.24%
3.2 Future
HESM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.93% yearly.
Based on estimates for the next years, HESM will show a quite strong growth in Revenue. The Revenue will grow by 10.58% on average per year.
EPS Next Y19.51%
EPS Next 2Y24.06%
EPS Next 3Y20.6%
EPS Next 5Y11.93%
Revenue Next Year10%
Revenue Next 2Y10.6%
Revenue Next 3Y10.58%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.56, which indicates a correct valuation of HESM.
The rest of the industry has a similar Price/Earnings ratio as HESM.
The average S&P500 Price/Earnings ratio is at 27.29. HESM is valued slightly cheaper when compared to this.
HESM is valuated reasonably with a Price/Forward Earnings ratio of 11.42.
HESM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HESM to the average of the S&P500 Index (23.78), we can say HESM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
61.27% of the companies in the same industry are cheaper than HESM, based on the Enterprise Value to EBITDA ratio.
HESM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.23 | ||
| EV/EBITDA | 10.45 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HESM may justify a higher PE ratio.
A more expensive valuation may be justified as HESM's earnings are expected to grow with 20.60% in the coming years.
PEG (NY)0.8
PEG (5Y)1.49
EPS Next 2Y24.06%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.64%, HESM is a good candidate for dividend investing.
HESM's Dividend Yield is a higher than the industry average which is at 7.14.
Compared to an average S&P500 Dividend Yield of 2.36, HESM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
5.2 History
The dividend of HESM decreases each year by -16.62%.
HESM has been paying a dividend for over 5 years, so it has already some track record.
As HESM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-16.62%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
108.41% of the earnings are spent on dividend by HESM. This is not a sustainable payout ratio.
DP108.41%
EPS Next 2Y24.06%
EPS Next 3Y20.6%
HESS MIDSTREAM LP - CLASS A
NYSE:HESM (12/23/2024, 4:45:00 PM)
After market: 36.73 0 (0%)36.73
+0.53 (+1.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.27%
Inst Owner Change12.97%
Ins Owners0.29%
Ins Owner Change3.47%
Market Cap8.01B
Analysts80
Price Target41.31 (12.47%)
Short Float %4.06%
Short Ratio5.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.64% |
Dividend Growth(5Y)-16.62%
DP108.41%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.47%
Min EPS beat(2)-8.76%
Max EPS beat(2)-6.17%
EPS beat(4)0
Avg EPS beat(4)-9.28%
Min EPS beat(4)-13.88%
Max EPS beat(4)-6.17%
EPS beat(8)2
Avg EPS beat(8)-5.76%
EPS beat(12)2
Avg EPS beat(12)-6.24%
EPS beat(16)3
Avg EPS beat(16)-4.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)-1.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.61%
Max Revenue beat(4)-0.92%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)3
Avg Revenue beat(12)-0.71%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)0%
PT rev (3m)1.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-1.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 11.42 | ||
| P/S | 5.5 | ||
| P/FCF | 12.23 | ||
| P/OCF | 8.62 | ||
| P/B | 15.08 | ||
| P/tB | 15.08 | ||
| EV/EBITDA | 10.45 |
EPS(TTM)2.36
EY6.43%
EPS(NY)3.22
Fwd EY8.76%
FCF(TTM)3
FCFY8.18%
OCF(TTM)4.26
OCFY11.61%
SpS6.68
BVpS2.44
TBVpS2.44
PEG (NY)0.8
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 35.82% | ||
| ROCE | 22.57% | ||
| ROIC | 17.83% | ||
| ROICexc | 17.88% | ||
| ROICexgc | 17.88% | ||
| OM | 60.85% | ||
| PM (TTM) | 13.06% | ||
| GM | N/A | ||
| FCFM | 44.98% |
ROA(3y)2.27%
ROA(5y)1.91%
ROE(3y)30.61%
ROE(5y)32.35%
ROIC(3y)17.86%
ROIC(5y)15.44%
ROICexc(3y)17.88%
ROICexc(5y)15.46%
ROICexgc(3y)17.88%
ROICexgc(5y)15.46%
ROCE(3y)22.61%
ROCE(5y)19.54%
ROICexcg growth 3Y8.78%
ROICexcg growth 5Y10.64%
ROICexc growth 3Y8.78%
ROICexc growth 5Y10.64%
OM growth 3Y4.69%
OM growth 5Y2.68%
PM growth 3Y58.75%
PM growth 5Y-1.93%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | 5.33 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 135.76% | ||
| Cap/Sales | 18.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.4% | ||
| Profit Quality | 344.32% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | N/A |
F-Score7
WACC7.93%
ROIC/WACC2.25
Cap/Depr(3y)115.35%
Cap/Depr(5y)150.59%
Cap/Sales(3y)16.27%
Cap/Sales(5y)22.5%
Profit Quality(3y)882.41%
Profit Quality(5y)862.54%
High Growth Momentum
Growth
EPS 1Y (TTM)16.26%
EPS 3Y16.85%
EPS 5Y10.48%
EPS Q2Q%10.53%
EPS Next Y19.51%
EPS Next 2Y24.06%
EPS Next 3Y20.6%
EPS Next 5Y11.93%
Revenue 1Y (TTM)11.43%
Revenue growth 3Y7.29%
Revenue growth 5Y13.6%
Sales Q2Q%4.24%
Revenue Next Year10%
Revenue Next 2Y10.6%
Revenue Next 3Y10.58%
Revenue Next 5YN/A
EBIT growth 1Y10.32%
EBIT growth 3Y12.32%
EBIT growth 5Y16.65%
EBIT Next Year36.99%
EBIT Next 3Y18.24%
EBIT Next 5Y12.16%
FCF growth 1Y1.98%
FCF growth 3Y23.59%
FCF growth 5Y23.37%
OCF growth 1Y7.82%
OCF growth 3Y10.53%
OCF growth 5Y13.16%