HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
NYSE:HESM - New York Stock Exchange, Inc. - US4281031058 - Common Stock - Currency: USD
HESM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. HESM has a medium profitability rating, but doesn't score so well on its financial health evaluation. HESM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HESM had positive earnings in the past year.
HESM had a positive operating cash flow in the past year.
In the past 5 years HESM has always been profitable.
Each year in the past 5 years HESM had a positive operating cash flow.
1.2 Ratios
HESM's Return On Assets of 4.59% is in line compared to the rest of the industry. HESM outperforms 46.12% of its industry peers.
The Return On Equity of HESM (35.82%) is better than 90.78% of its industry peers.
HESM has a better Return On Invested Capital (17.83%) than 88.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HESM is significantly below the industry average of 28.71%.
| 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
HESM has a Profit Margin (13.06%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HESM has declined.
HESM has a better Operating Margin (60.85%) than 92.72% of its industry peers.
In the last couple of years the Operating Margin of HESM has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HESM is creating value.
HESM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HESM has more shares outstanding
The debt/assets ratio for HESM is higher compared to a year ago.
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.
With a Debt to FCF ratio value of 5.33, HESM perfoms like the industry average, outperforming 58.74% of the companies in the same industry.
A Debt/Equity ratio of 6.53 is on the high side and indicates that HESM has dependencies on debt financing.
The Debt to Equity ratio of HESM (6.53) is worse than 94.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.53 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | N/A |
ROIC/WACC2.17
WACC8.22%
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.
HESM has a Current ratio of 0.70. This is in the lower half of the industry: HESM underperforms 77.67% of its industry peers.
HESM has a Quick 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.
HESM has a Quick ratio of 0.70. This is in the lower half of the industry: HESM underperforms 70.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
HESM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.26%, which is quite good.
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.
HESM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.43%.
The Revenue has been growing by 13.60% on average over the past years. This is quite good.
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.
HESM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.64% yearly.
EPS Next Y19.51%
EPS Next 2Y24.06%
EPS Next 3Y20.6%
EPS Next 5Y11.93%
Revenue Next Year10.07%
Revenue Next 2Y10.66%
Revenue Next 3Y10.64%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.49 indicates a rather expensive valuation of HESM.
HESM's Price/Earnings is on the same level as the industry average.
HESM is valuated rather cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.83, the valuation of HESM can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as HESM.
The average S&P500 Price/Forward Earnings ratio is at 24.47. HESM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HESM is valued a bit more expensive than the industry average as 63.59% of the companies are valued more cheaply.
HESM's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.74 | ||
| EV/EBITDA | 11.38 |
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.
HESM has a very decent profitability rating, which may justify a higher PE ratio.
HESM's earnings are expected to grow with 20.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)1.67
EPS Next 2Y24.06%
EPS Next 3Y20.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.67%, HESM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.39, HESM pays a bit more dividend than its industry peers.
HESM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
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.
HESM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 (1/24/2025, 5:53:50 PM)
After market: 41.0237 -0.26 (-0.62%)41.28
+0.44 (+1.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners94.27%
Inst Owner Change0.21%
Ins Owners0.29%
Ins Owner Change3.47%
Market Cap9.00B
Analysts80
Price Target42.08 (1.94%)
Short Float %6.92%
Short Ratio8.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.67% |
Yearly Dividend0.55
Dividend Growth(5Y)-16.62%
DP108.41%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
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)1.85%
PT rev (3m)3.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0%
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)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 12.83 | ||
| P/S | 6.18 | ||
| P/FCF | 13.74 | ||
| P/OCF | 9.68 | ||
| P/B | 16.95 | ||
| P/tB | 16.95 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)2.36
EY5.72%
EPS(NY)3.22
Fwd EY7.79%
FCF(TTM)3
FCFY7.28%
OCF(TTM)4.26
OCFY10.33%
SpS6.68
BVpS2.44
TBVpS2.44
PEG (NY)0.9
PEG (5Y)1.67
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
WACC8.22%
ROIC/WACC2.17
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 Year10.07%
Revenue Next 2Y10.66%
Revenue Next 3Y10.64%
Revenue Next 5YN/A
EBIT growth 1Y10.32%
EBIT growth 3Y12.32%
EBIT growth 5Y16.65%
EBIT Next Year36.87%
EBIT Next 3Y18.41%
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%