EQUITRANS MIDSTREAM CORP (ETRN) Stock Fundamental Analysis
NYSE:ETRN - New York Stock Exchange, Inc. - US2946001011 - Common Stock - Currency: USD
Overall ETRN gets a fundamental rating of 3 out of 10. We evaluated ETRN against 213 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of ETRN while its profitability can be described as average. ETRN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ETRN was profitable.
In the past year ETRN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ETRN reported negative net income in multiple years.
ETRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETRN has a worse Return On Assets (3.33%) than 63.33% of its industry peers.
Looking at the Return On Equity, with a value of 22.40%, ETRN is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
ETRN has a worse Return On Invested Capital (4.60%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETRN is significantly below the industry average of 25.88%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 22.4% | ||
| ROIC | 4.6% |
ROA(3y)-4.45%
ROA(5y)-2.44%
ROE(3y)-21.93%
ROE(5y)-17.37%
ROIC(3y)5.32%
ROIC(5y)5.81%
1.3 Margins
Looking at the Profit Margin, with a value of 28.51%, ETRN is in the better half of the industry, outperforming 74.76% of the companies in the same industry.
ETRN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 47.47%, ETRN belongs to the best of the industry, outperforming 86.19% of the companies in the same industry.
In the last couple of years the Operating Margin of ETRN has declined.
Looking at the Gross Margin, with a value of 86.95%, ETRN belongs to the top of the industry, outperforming 92.38% of the companies in the same industry.
In the last couple of years the Gross Margin of ETRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 47.47% | ||
| PM (TTM) | 28.51% | ||
| GM | 86.95% |
OM growth 3Y-6.38%
OM growth 5Y-5.82%
PM growth 3Y5.27%
PM growth 5Y13.69%
GM growth 3Y-0.96%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
ETRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ETRN has about the same amout of shares outstanding than it did 1 year ago.
ETRN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETRN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that ETRN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.26, ETRN is doing worse than 69.52% of the companies in the same industry.
The Debt to FCF ratio of ETRN is 13.59, which is on the high side as it means it would take ETRN, 13.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.59, ETRN is doing worse than 60.48% of the companies in the same industry.
A Debt/Equity ratio of 4.26 is on the high side and indicates that ETRN has dependencies on debt financing.
ETRN has a Debt to Equity ratio of 4.26. This is amonst the worse of the industry: ETRN underperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.26 | ||
| Debt/FCF | 13.59 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.71
WACC6.49%
2.3 Liquidity
A Current Ratio of 0.63 indicates that ETRN may have some problems paying its short term obligations.
ETRN has a worse Current ratio (0.63) than 81.43% of its industry peers.
ETRN has a Quick Ratio of 0.63. This is a bad value and indicates that ETRN is not financially healthy enough and could expect problems in meeting its short term obligations.
ETRN's Quick ratio of 0.63 is on the low side compared to the rest of the industry. ETRN is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
ETRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.64%, which is quite impressive.
Measured over the past years, ETRN shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.69% on average per year.
ETRN shows a decrease in Revenue. In the last year, the revenue decreased by -0.72%.
The Revenue has been decreasing by -1.39% on average over the past years.
EPS 1Y (TTM)63.64%
EPS 3Y-11.86%
EPS 5Y-3.69%
EPS Q2Q%4.55%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y-2.65%
Revenue growth 5Y-1.39%
Sales Q2Q%-3.21%
3.2 Future
Based on estimates for the next years, ETRN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.69% on average per year.
The Revenue is expected to grow by 5.55% on average over the next years.
EPS Next Y-15.38%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
EPS Next 5Y10.69%
Revenue Next Year5.96%
Revenue Next 2Y6.21%
Revenue Next 3Y3.41%
Revenue Next 5Y5.55%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.80, which indicates a correct valuation of ETRN.
ETRN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.91. ETRN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.86, ETRN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETRN indicates a slightly more expensive valuation: ETRN is more expensive than 60.00% of the companies listed in the same industry.
ETRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETRN is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETRN indicates a somewhat cheap valuation: ETRN is cheaper than 68.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.33%
EPS Next 3Y1.5%
5. Dividend
5.1 Amount
ETRN has a Yearly Dividend Yield of 4.83%, which is a nice return.
Compared to an average industry Dividend Yield of 6.72, ETRN pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ETRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
5.2 History
The dividend of ETRN decreases each year by -30.14%.
ETRN has been paying a dividend for over 5 years, so it has already some track record.
ETRN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-30.14%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ETRN pays out 80.84% of its income as dividend. This is not a sustainable payout ratio.
DP80.84%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
12.42
+0.07 (+0.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners4.79%
Inst Owner Change-39.18%
Ins Owners5.92%
Ins Owner Change0%
Market Cap5.43B
Analysts74.29
Price Target13.9 (11.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend0.74
Dividend Growth(5Y)-30.14%
DP80.84%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.68%
Min EPS beat(2)-6.05%
Max EPS beat(2)55.4%
EPS beat(4)2
Avg EPS beat(4)23.21%
Min EPS beat(4)-18.89%
Max EPS beat(4)62.36%
EPS beat(8)3
Avg EPS beat(8)12.82%
EPS beat(12)3
Avg EPS beat(12)-11.84%
EPS beat(16)3
Avg EPS beat(16)-13.5%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-0.63%
Revenue beat(4)1
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-5.38%
Max Revenue beat(4)1.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-5.17%
Revenue beat(16)3
Avg Revenue beat(16)-5.05%
PT rev (1m)0%
PT rev (3m)22.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 | ||
| P/S | 3.93 | ||
| P/FCF | 9.47 | ||
| P/OCF | 5.6 | ||
| P/B | 3.09 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 13.13 |
EPS(TTM)0.9
EY7.25%
EPS(NY)0.9
Fwd EY7.21%
FCF(TTM)1.31
FCFY10.56%
OCF(TTM)2.22
OCFY17.85%
SpS3.16
BVpS4.02
TBVpS1.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 22.4% | ||
| ROCE | 5.82% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.62% | ||
| ROICexgc | 5.07% | ||
| OM | 47.47% | ||
| PM (TTM) | 28.51% | ||
| GM | 86.95% | ||
| FCFM | 41.47% |
ROA(3y)-4.45%
ROA(5y)-2.44%
ROE(3y)-21.93%
ROE(5y)-17.37%
ROIC(3y)5.32%
ROIC(5y)5.81%
ROICexc(3y)5.39%
ROICexc(5y)5.89%
ROICexgc(3y)6.02%
ROICexgc(5y)6.58%
ROCE(3y)6.73%
ROCE(5y)7.36%
ROICexcg growth 3Y-5.64%
ROICexcg growth 5Y-10.86%
ROICexc growth 3Y-5.41%
ROICexc growth 5Y-8.91%
OM growth 3Y-6.38%
OM growth 5Y-5.82%
PM growth 3Y5.27%
PM growth 5Y13.69%
GM growth 3Y-0.96%
GM growth 5Y-0.42%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.26 | ||
| Debt/FCF | 13.59 | ||
| Debt/EBITDA | 7.47 | ||
| Cap/Depr | 114.25% | ||
| Cap/Sales | 28.65% | ||
| Interest Coverage | 1.52 | ||
| Cash Conversion | 96.65% | ||
| Profit Quality | 145.43% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 0.26 |
F-Score5
WACC6.49%
ROIC/WACC0.71
Cap/Depr(3y)103.58%
Cap/Depr(5y)159.7%
Cap/Sales(3y)25.84%
Cap/Sales(5y)33.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)63.64%
EPS 3Y-11.86%
EPS 5Y-3.69%
EPS Q2Q%4.55%
EPS Next Y-15.38%
EPS Next 2Y0.33%
EPS Next 3Y1.5%
EPS Next 5Y10.69%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y-2.65%
Revenue growth 5Y-1.39%
Sales Q2Q%-3.21%
Revenue Next Year5.96%
Revenue Next 2Y6.21%
Revenue Next 3Y3.41%
Revenue Next 5Y5.55%
EBIT growth 1Y-13.11%
EBIT growth 3Y-8.86%
EBIT growth 5Y-7.13%
EBIT Next Year74.2%
EBIT Next 3Y24.78%
EBIT Next 5Y18.95%
FCF growth 1Y-30.51%
FCF growth 3Y-2.48%
FCF growth 5YN/A
OCF growth 1Y-13.89%
OCF growth 3Y-3.79%
OCF growth 5Y7.08%