EQUITRANS MIDSTREAM CORP (ETRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETRN - US2946001011 - Common Stock
12.42 USD
+0.07 (+0.57%)
12.5 USD
+0.08 (+0.64%)
Overall ETRN gets a fundamental rating of 3 out of 10. We evaluated ETRN against 207 industry peers in the Oil, Gas & Consumable Fuels industry. ETRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. ETRN is valied quite expensively at the moment, while 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.
- In multiple years ETRN reported negative net income over the last 5 years.
- Each year in the past 5 years ETRN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ETRN (3.33%) is worse 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's Return On Invested Capital of 4.60% is on the low side compared to the rest of the industry. ETRN is outperformed by 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 21.94%.
| 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
- With a decent Profit Margin value of 28.51%, ETRN is doing good in the industry, outperforming 74.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of ETRN has grown nicely.
- ETRN's Operating Margin of 47.47% is amongst the best of the industry. ETRN outperforms 86.19% of its industry peers.
- ETRN's Operating Margin has declined in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETRN is destroying value.
- The number of shares outstanding for ETRN remains at a similar level compared to 1 year ago.
- The debt/assets ratio for ETRN has been reduced compared to a year ago.
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.
- ETRN's Altman-Z score of 0.26 is on the low side compared to the rest of the industry. ETRN is outperformed by 69.52% of its industry peers.
- ETRN has a debt to FCF ratio of 13.59. This is a negative value and a sign of low solvency as ETRN would need 13.59 years to pay back of all of its debts.
- ETRN has a worse Debt to FCF ratio (13.59) than 60.48% of its industry peers.
- ETRN has a Debt/Equity ratio of 4.26. This is a high value indicating a heavy dependency on external financing.
- ETRN has a worse Debt to Equity ratio (4.26) than 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.
- Looking at the Current ratio, with a value of 0.63, ETRN is doing worse than 81.43% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.63, ETRN is doing worse than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 63.64% over the past year.
- 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.
- The Revenue has decreased by -0.72% in the past year.
- Measured over the past years, ETRN shows a decrease in Revenue. The Revenue has been decreasing by -1.39% on average per year.
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.
- ETRN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.55% yearly.
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 ratio is in line with the industry average.
- ETRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.38.
- With a Price/Forward Earnings ratio of 13.86, ETRN is valued correctly.
- Based on the Price/Forward Earnings ratio, ETRN is valued a bit more expensive than 60.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ETRN to the average of the S&P500 Index (24.29), we can say ETRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
- ETRN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ETRN is more expensive than 73.33% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ETRN is valued a bit cheaper than the industry average as 68.10% of the companies are valued more expensively.
| 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
- With a Yearly Dividend Yield of 4.83%, ETRN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.75, ETRN pays a bit more dividend than its industry peers.
- ETRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| 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.
- The dividend of ETRN decreased in the last 3 years.
Dividend Growth(5Y)-30.14%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 80.84% of the earnings are spent on dividend by ETRN. 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)04-30 2024-04-30/bmo
Earnings (Next)07-30 2024-07-30/amc
Inst Owners4.79%
Inst Owner Change-98.48%
Ins Owners5.92%
Ins Owner Change0%
Market Cap5.43B
Revenue(TTM)1.38B
Net Income(TTM)394.01M
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
Graham NumberN/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%
ROICexgc growth 3Y-5.64%
ROICexgc 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%
EQUITRANS MIDSTREAM CORP / ETRN FAQ
What is the ChartMill fundamental rating of EQUITRANS MIDSTREAM CORP (ETRN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to ETRN.
What is the valuation status of EQUITRANS MIDSTREAM CORP (ETRN) stock?
ChartMill assigns a valuation rating of 3 / 10 to EQUITRANS MIDSTREAM CORP (ETRN). This can be considered as Overvalued.
How profitable is EQUITRANS MIDSTREAM CORP (ETRN) stock?
EQUITRANS MIDSTREAM CORP (ETRN) has a profitability rating of 5 / 10.
What is the valuation of EQUITRANS MIDSTREAM CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for EQUITRANS MIDSTREAM CORP (ETRN) is 13.8 and the Price/Book (PB) ratio is 3.09.
Can you provide the dividend sustainability for ETRN stock?
The dividend rating of EQUITRANS MIDSTREAM CORP (ETRN) is 5 / 10 and the dividend payout ratio is 80.84%.