HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HESM - US4281031058 - Common Stock
34.36 USD
+0.28 (+0.82%)
34.36 USD
0 (0%)
Taking everything into account, HESM scores 5 out of 10 in our fundamental rating. HESM was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. HESM has an excellent profitability rating, but there are concerns on its financial health. HESM is not valued too expensively and it also shows a decent growth rate.
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.
HESM had positive earnings in each of the past 5 years.
In the past 5 years HESM always reported a positive cash flow from operatings.
1.2 Ratios
HESM has a Return On Assets of 7.44%. This is amongst the best in the industry. HESM outperforms 80.48% of its industry peers.
HESM's Return On Equity of 57.64% is amongst the best of the industry. HESM outperforms 94.76% of its industry peers.
With an excellent Return On Invested Capital value of 18.74%, HESM belongs to the best of the industry, outperforming 96.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HESM is below the industry average of 21.09%.
The 3 year average ROIC (18.24%) for HESM is below the current ROIC(18.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 57.64% | ||
| ROIC | 18.74% |
ROA(3y)3.61%
ROA(5y)2.58%
ROE(3y)37.04%
ROE(5y)30.61%
ROIC(3y)18.24%
ROIC(5y)17.21%
1.3 Margins
Looking at the Profit Margin, with a value of 20.46%, HESM is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Profit Margin of HESM has grown nicely.
HESM has a Operating Margin of 61.97%. This is amongst the best in the industry. HESM outperforms 94.29% of its industry peers.
HESM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.97% | ||
| PM (TTM) | 20.46% | ||
| GM | N/A |
OM growth 3Y0.57%
OM growth 5Y6.72%
PM growth 3Y57.01%
PM growth 5Y13.67%
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.
Compared to 1 year ago, HESM has less shares outstanding
Compared to 5 years ago, HESM has less shares outstanding
HESM has a better debt/assets ratio than last year.
2.2 Solvency
HESM has a debt to FCF ratio of 5.32. This is a neutral value as HESM would need 5.32 years to pay back of all of its debts.
HESM's Debt to FCF ratio of 5.32 is fine compared to the rest of the industry. HESM outperforms 64.76% of its industry peers.
HESM has a Debt/Equity ratio of 6.58. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.58, HESM is not doing good in the industry: 90.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | N/A |
ROIC/WACC2.33
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.75, HESM is doing worse than 71.43% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
HESM has a worse Quick ratio (0.75) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.49% 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 15.34% on average per year.
Looking at the last year, HESM shows a quite strong growth in Revenue. The Revenue has grown by 10.78% in the last year.
HESM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.01% yearly.
EPS 1Y (TTM)19.49%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%19.05%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
3.2 Future
The Earnings Per Share is expected to grow by 1.66% on average over the next years.
HESM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y15.38%
EPS Next 2Y6.62%
EPS Next 3Y4.84%
EPS Next 5Y1.66%
Revenue Next Year9.66%
Revenue Next 2Y5.35%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.18, HESM is valued correctly.
Based on the Price/Earnings ratio, HESM is valued a bit cheaper than 67.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, HESM is valued rather cheaply.
A Price/Forward Earnings ratio of 12.14 indicates a correct valuation of HESM.
HESM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HESM is cheaper than 63.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HESM to the average of the S&P500 Index (24.01), we can say HESM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
HESM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HESM is valued a bit cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.01 | ||
| EV/EBITDA | 8.98 |
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.
PEG (NY)0.79
PEG (5Y)0.79
EPS Next 2Y6.62%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.90%, HESM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.95, HESM pays a better dividend. On top of this HESM pays more dividend than 86.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, HESM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.9% |
5.2 History
On average, the dividend of HESM grows each year by 16.02%, which is quite nice.
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)16.02%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
HESM pays out 98.15% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HESM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP98.15%
EPS Next 2Y6.62%
EPS Next 3Y4.84%
34.36
+0.28 (+0.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change7.19%
Ins Owners0.18%
Ins Owner Change-27.61%
Market Cap7.14B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target37.59 (9.4%)
Short Float %5.57%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.9% |
Yearly Dividend1.06
Dividend Growth(5Y)16.02%
DP98.15%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.52%
Min EPS beat(2)8.99%
Max EPS beat(2)10.05%
EPS beat(4)3
Avg EPS beat(4)5.05%
Min EPS beat(4)-1.82%
Max EPS beat(4)10.05%
EPS beat(8)3
Avg EPS beat(8)-2.11%
EPS beat(12)5
Avg EPS beat(12)-2.15%
EPS beat(16)5
Avg EPS beat(16)-3.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)0.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)2
Avg Revenue beat(12)-1.34%
Revenue beat(16)4
Avg Revenue beat(16)-0.81%
PT rev (1m)-5.49%
PT rev (3m)-19.17%
EPS NQ rev (1m)4.05%
EPS NQ rev (3m)-3.75%
EPS NY rev (1m)2.99%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-5.66%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.18 | ||
| Fwd PE | 12.14 | ||
| P/S | 4.42 | ||
| P/FCF | 10.01 | ||
| P/OCF | 7.16 | ||
| P/B | 12.46 | ||
| P/tB | 12.46 | ||
| EV/EBITDA | 8.98 |
EPS(TTM)2.82
EY8.21%
EPS(NY)2.83
Fwd EY8.24%
FCF(TTM)3.43
FCFY9.99%
OCF(TTM)4.8
OCFY13.97%
SpS7.77
BVpS2.76
TBVpS2.76
PEG (NY)0.79
PEG (5Y)0.79
Graham Number13.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 57.64% | ||
| ROCE | 23.72% | ||
| ROIC | 18.74% | ||
| ROICexc | 18.76% | ||
| ROICexgc | 18.76% | ||
| OM | 61.97% | ||
| PM (TTM) | 20.46% | ||
| GM | N/A | ||
| FCFM | 44.18% |
ROA(3y)3.61%
ROA(5y)2.58%
ROE(3y)37.04%
ROE(5y)30.61%
ROIC(3y)18.24%
ROIC(5y)17.21%
ROICexc(3y)18.26%
ROICexc(5y)17.23%
ROICexgc(3y)18.26%
ROICexgc(5y)17.23%
ROCE(3y)23.09%
ROCE(5y)21.79%
ROICexgc growth 3Y2.15%
ROICexgc growth 5Y14%
ROICexc growth 3Y2.15%
ROICexc growth 5Y14%
OM growth 3Y0.57%
OM growth 5Y6.72%
PM growth 3Y57.01%
PM growth 5Y13.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 134.47% | ||
| Cap/Sales | 17.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 215.97% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | N/A |
F-Score8
WACC8.06%
ROIC/WACC2.33
Cap/Depr(3y)132.73%
Cap/Depr(5y)137.73%
Cap/Sales(3y)18.57%
Cap/Sales(5y)19.37%
Profit Quality(3y)522.92%
Profit Quality(5y)870.13%
High Growth Momentum
Growth
EPS 1Y (TTM)19.49%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%19.05%
EPS Next Y15.38%
EPS Next 2Y6.62%
EPS Next 3Y4.84%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
Revenue Next Year9.66%
Revenue Next 2Y5.35%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y12.8%
EBIT growth 3Y8.12%
EBIT growth 5Y19.53%
EBIT Next Year35.07%
EBIT Next 3Y11.88%
EBIT Next 5Y7.72%
FCF growth 1Y14.99%
FCF growth 3Y0.1%
FCF growth 5Y31.01%
OCF growth 1Y18.46%
OCF growth 3Y5.73%
OCF growth 5Y14.84%
HESS MIDSTREAM LP - CLASS A / HESM FAQ
What is the fundamental rating for HESM stock?
ChartMill assigns a fundamental rating of 5 / 10 to HESM.
What is the valuation status of HESS MIDSTREAM LP - CLASS A (HESM) stock?
ChartMill assigns a valuation rating of 6 / 10 to HESS MIDSTREAM LP - CLASS A (HESM). This can be considered as Fairly Valued.
What is the profitability of HESM stock?
HESS MIDSTREAM LP - CLASS A (HESM) has a profitability rating of 7 / 10.
What are the PE and PB ratios of HESS MIDSTREAM LP - CLASS A (HESM) stock?
The Price/Earnings (PE) ratio for HESS MIDSTREAM LP - CLASS A (HESM) is 12.18 and the Price/Book (PB) ratio is 12.46.
How financially healthy is HESS MIDSTREAM LP - CLASS A?
The financial health rating of HESS MIDSTREAM LP - CLASS A (HESM) is 3 / 10.