Should you consider NYSE:HESM for quality investing?

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 course 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.

A Deep Dive into HESS MIDSTREAM LP - CLASS A's Quality Metrics.

• HESS MIDSTREAM LP - CLASS A has demonstrated significant revenue growth over the past 5 years, with a 13.6% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• HESS MIDSTREAM LP - CLASS A demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 18.06% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 5.0, HESS MIDSTREAM LP - CLASS A showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 863.0%, HESS MIDSTREAM LP - CLASS A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• HESS MIDSTREAM LP - CLASS A has consistently achieved strong EBIT growth over the past 5 years, with a 16.65% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• HESS MIDSTREAM LP - CLASS A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

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.

Taking everything into account, HESM scores 4 out of 10 in our fundamental rating. HESM was compared to 214 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 has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of HESM contains the most current fundamental analsysis.

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

Keep in mind

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.