HESS MIDSTREAM LP - CLASS A (HESM)
US4281031058 - Common Stock
HESM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While HESM is still in line with the averages on profitability rating, 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.
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 has a Return On Assets (4.12%) which is comparable to the rest of the industry.
The Return On Equity of HESM (35.93%) is better than 90.15% of its industry peers.
The Return On Invested Capital of HESM (17.91%) is better than 89.16% of its industry peers.
HESM had an Average Return On Invested Capital over the past 3 years of 17.86%. This is below the industry average of 22.54%.
The last Return On Invested Capital (17.91%) for HESM is above the 3 year average (17.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 35.93% | ||
| ROIC | 17.91% |
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 of 11.58%. This is comparable to the rest of the industry: HESM outperforms 44.83% of its industry peers.
HESM's Profit Margin has declined in the last couple of years.
HESM has a better Operating Margin (60.69%) than 92.12% of its industry peers.
HESM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 60.69% | ||
| PM (TTM) | 11.58% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HESM is creating value.
The number of shares outstanding for HESM has been reduced compared to 1 year ago.
The number of shares outstanding for HESM has been increased compared to 5 years ago.
Compared to 1 year ago, HESM has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HESM is 5.05, which is a neutral value as it means it would take HESM, 5.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.05, HESM is in line with its industry, outperforming 58.62% of the companies in the same industry.
A Debt/Equity ratio of 7.41 is on the high side and indicates that HESM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 7.41, HESM is doing worse than 93.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | N/A |
ROIC/WACC2.3
WACC7.79%
2.3 Liquidity
HESM has a Current Ratio of 1.11. This is a normal value and indicates that HESM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, HESM perfoms like the industry average, outperforming 45.32% of the companies in the same industry.
HESM has a Quick Ratio of 1.11. This is a normal value and indicates that HESM is financially healthy and should not expect problems in meeting its short term obligations.
HESM has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.26% over the past year.
HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.48% yearly.
HESM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.43%.
HESM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.60% yearly.
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 12.55% yearly.
The Revenue is expected to grow by 9.74% on average over the next years. This is quite good.
EPS Next Y19.89%
EPS Next 2Y17.25%
EPS Next 3Y21%
EPS Next 5Y12.55%
Revenue Next Year10.07%
Revenue Next 2Y10.66%
Revenue Next 3Y9.74%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.60, HESM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of HESM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.96. HESM is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.82, which indicates a correct valuation of HESM.
HESM's Price/Forward Earnings is on the same level as the industry average.
HESM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
HESM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HESM is more expensive than 61.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HESM indicates a somewhat cheap valuation: HESM is cheaper than 60.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.72 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
HESM's 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.
HESM's earnings are expected to grow with 21.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)1.49
EPS Next 2Y17.25%
EPS Next 3Y21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.78%, HESM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.45, HESM pays a better dividend. On top of this HESM pays more dividend than 80.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, HESM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
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 Years6
Div Non Decr Years6
5.3 Sustainability
107.43% of the earnings are spent on dividend by HESM. This is not a sustainable payout ratio.
DP107.43%
EPS Next 2Y17.25%
EPS Next 3Y21%
HESS MIDSTREAM LP - CLASS A
NYSE:HESM (11/21/2024, 8:04:00 PM)
After market: 37.5 +0.68 (+1.85%)36.82
+0.75 (+2.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.6 | ||
| Fwd PE | 12.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.12% | ||
| ROE | 35.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 60.69% | ||
| PM (TTM) | 11.58% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)16.26%
EPS 3Y16.85%
EPS 5Y
EPS Q2Q%
EPS Next Y19.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.43%
Revenue growth 3Y7.29%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y