Why NYSE:HESM qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if HESS MIDSTREAM LP - CLASS A (NYSE:HESM) is suited for quality investing. Investors should of couse do their own research, but we spotted HESS MIDSTREAM LP - CLASS A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:HESM highlighted

• HESS MIDSTREAM LP - CLASS A has shown strong performance in revenue growth over the past 5 years, with a 17.09% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of HESS MIDSTREAM LP - CLASS A stands at 17.73%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• HESS MIDSTREAM LP - CLASS A maintains a healthy Debt/Free Cash Flow Ratio of 4.9, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a favorable Profit Quality (5-year) ratio of 819.0%, HESS MIDSTREAM LP - CLASS A showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• The 5-year EBIT growth of HESS MIDSTREAM LP - CLASS A has been remarkable, with 24.63% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• HESS MIDSTREAM LP - CLASS A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

We assign a fundamental rating of 4 out of 10 to HESM. HESM was compared to 217 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 quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of HESM for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.