ANTERO MIDSTREAM CORP (AM) Stock Fundamental Analysis
NYSE:AM - New York Stock Exchange, Inc. - US03676B1026 - Common Stock - Currency: USD
Taking everything into account, AM scores 5 out of 10 in our fundamental rating. AM was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While AM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AM had positive earnings in the past year.
In the past year AM had a positive cash flow from operations.
Of the past 5 years AM 4 years were profitable.
Each year in the past 5 years AM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.95%, AM is doing good in the industry, outperforming 71.36% of the companies in the same industry.
AM has a Return On Equity of 18.93%. This is amongst the best in the industry. AM outperforms 82.16% of its industry peers.
The Return On Invested Capital of AM (8.60%) is better than 68.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AM is significantly below the industry average of 25.73%.
The last Return On Invested Capital (8.60%) for AM is above the 3 year average (7.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 18.93% | ||
| ROIC | 8.6% |
ROA(3y)6.35%
ROA(5y)4.56%
ROE(3y)17.01%
ROE(5y)12.09%
ROIC(3y)7.9%
ROIC(5y)7.76%
1.3 Margins
AM has a Profit Margin of 36.19%. This is amongst the best in the industry. AM outperforms 88.73% of its industry peers.
In the last couple of years the Profit Margin of AM has remained more or less at the same level.
Looking at the Operating Margin, with a value of 59.68%, AM belongs to the top of the industry, outperforming 92.96% of the companies in the same industry.
AM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.68% | ||
| PM (TTM) | 36.19% | ||
| GM | N/A |
OM growth 3Y-1.68%
OM growth 5Y5.41%
PM growth 3Y-0.61%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AM is destroying value.
AM has about the same amout of shares outstanding than it did 1 year ago.
AM has less shares outstanding than it did 5 years ago.
AM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.08 indicates that AM is not a great score, but indicates only limited risk for bankruptcy at the moment.
AM has a Altman-Z score of 2.08. This is in the better half of the industry: AM outperforms 69.95% of its industry peers.
The Debt to FCF ratio of AM is 5.18, which is a neutral value as it means it would take AM, 5.18 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.18, AM is doing good in the industry, outperforming 63.85% of the companies in the same industry.
AM has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.47, AM is doing worse than 76.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.18 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.87
WACC9.91%
2.3 Liquidity
A Current Ratio of 1.17 indicates that AM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, AM is in line with its industry, outperforming 51.17% of the companies in the same industry.
AM has a Quick Ratio of 1.17. This is a normal value and indicates that AM is financially healthy and should not expect problems in meeting its short term obligations.
AM has a better Quick ratio (1.17) than 60.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.75% over the past year.
Measured over the past 5 years, AM shows a small growth in Earnings Per Share. The EPS has been growing by 3.44% on average per year.
AM shows a small growth in Revenue. In the last year, the Revenue has grown by 5.37%.
The Revenue has been growing slightly by 6.89% on average over the past years.
EPS 1Y (TTM)8.75%
EPS 3Y3.44%
EPS 5YN/A
EPS Q2Q%19.05%
Revenue 1Y (TTM)5.37%
Revenue growth 3Y7.19%
Revenue growth 5Y6.89%
Sales Q2Q%4.33%
3.2 Future
AM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.30% yearly.
AM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y21.12%
EPS Next 2Y18%
EPS Next 3Y16.3%
EPS Next 5YN/A
Revenue Next Year4.41%
Revenue Next 2Y3.42%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 21.68 indicates a rather expensive valuation of AM.
The rest of the industry has a similar Price/Earnings ratio as AM.
Compared to an average S&P500 Price/Earnings ratio of 26.20, AM is valued at the same level.
With a Price/Forward Earnings ratio of 16.32, AM is valued correctly.
AM's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. AM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AM is valued a bit more expensive than the industry average as 63.38% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, AM is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.02 | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AM may justify a higher PE ratio.
A more expensive valuation may be justified as AM's earnings are expected to grow with 16.30% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y18%
EPS Next 3Y16.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, AM is a good candidate for dividend investing.
AM's Dividend Yield is a higher than the industry average which is at 6.81.
AM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of AM decreases each year by -9.21%.
AM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AM decreased in the last 3 years.
Dividend Growth(5Y)-9.21%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
AM pays out 109.45% of its income as dividend. This is not a sustainable payout ratio.
DP109.45%
EPS Next 2Y18%
EPS Next 3Y16.3%
18.86
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners58.13%
Inst Owner Change-1.56%
Ins Owners1.16%
Ins Owner Change0.97%
Market Cap9.04B
Analysts46.25
Price Target16.92 (-10.29%)
Short Float %3.22%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend0.91
Dividend Growth(5Y)-9.21%
DP109.45%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.9%
Min EPS beat(2)-11.35%
Max EPS beat(2)-4.45%
EPS beat(4)0
Avg EPS beat(4)-11.89%
Min EPS beat(4)-21.33%
Max EPS beat(4)-4.45%
EPS beat(8)0
Avg EPS beat(8)-10.04%
EPS beat(12)0
Avg EPS beat(12)-9.6%
EPS beat(16)1
Avg EPS beat(16)-9.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.77%
Min Revenue beat(2)-3.73%
Max Revenue beat(2)2.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.73%
Max Revenue beat(4)2.2%
Revenue beat(8)1
Avg Revenue beat(8)-2.48%
Revenue beat(12)1
Avg Revenue beat(12)-4.01%
Revenue beat(16)2
Avg Revenue beat(16)-3.36%
PT rev (1m)0%
PT rev (3m)5.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.89%
EPS NY rev (1m)-2.27%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 16.32 | ||
| P/S | 8.17 | ||
| P/FCF | 15.02 | ||
| P/OCF | 10.71 | ||
| P/B | 4.27 | ||
| P/tB | 9.31 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)0.87
EY4.61%
EPS(NY)1.16
Fwd EY6.13%
FCF(TTM)1.26
FCFY6.66%
OCF(TTM)1.76
OCFY9.34%
SpS2.31
BVpS4.41
TBVpS2.02
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 18.93% | ||
| ROCE | 11.66% | ||
| ROIC | 8.6% | ||
| ROICexc | 8.6% | ||
| ROICexgc | 10.78% | ||
| OM | 59.68% | ||
| PM (TTM) | 36.19% | ||
| GM | N/A | ||
| FCFM | 54.39% |
ROA(3y)6.35%
ROA(5y)4.56%
ROE(3y)17.01%
ROE(5y)12.09%
ROIC(3y)7.9%
ROIC(5y)7.76%
ROICexc(3y)7.9%
ROICexc(5y)7.76%
ROICexgc(3y)10.05%
ROICexgc(5y)10.08%
ROCE(3y)10.71%
ROCE(5y)10.53%
ROICexcg growth 3Y1.82%
ROICexcg growth 5Y9.79%
ROICexc growth 3Y3.94%
ROICexc growth 5Y14.15%
OM growth 3Y-1.68%
OM growth 5Y5.41%
PM growth 3Y-0.61%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | 5.18 | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 115.03% | ||
| Cap/Sales | 21.91% | ||
| Interest Coverage | 3.48 | ||
| Cash Conversion | 96.91% | ||
| Profit Quality | 150.29% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 2.08 |
F-Score9
WACC9.91%
ROIC/WACC0.87
Cap/Depr(3y)152.9%
Cap/Depr(5y)139.6%
Cap/Sales(3y)31.87%
Cap/Sales(5y)28.68%
Profit Quality(3y)122.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.75%
EPS 3Y3.44%
EPS 5YN/A
EPS Q2Q%19.05%
EPS Next Y21.12%
EPS Next 2Y18%
EPS Next 3Y16.3%
EPS Next 5YN/A
Revenue 1Y (TTM)5.37%
Revenue growth 3Y7.19%
Revenue growth 5Y6.89%
Sales Q2Q%4.33%
Revenue Next Year4.41%
Revenue Next 2Y3.42%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
EBIT growth 1Y6.8%
EBIT growth 3Y5.39%
EBIT growth 5Y12.68%
EBIT Next Year44.64%
EBIT Next 3Y15.34%
EBIT Next 5Y9.08%
FCF growth 1Y1.11%
FCF growth 3Y8.05%
FCF growth 5Y21.27%
OCF growth 1Y8.33%
OCF growth 3Y5.94%
OCF growth 5Y6.28%