HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HESM - US4281031058 - Common Stock
34.73 USD
+0.65 (+1.91%)
34.9818 USD
+0.25 (+0.73%)
Taking everything into account, HESM scores 5 out of 10 in our fundamental rating. HESM was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. HESM scores excellent on profitability, but there are concerns on its financial health. HESM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HESM was profitable.
In the past year HESM had a positive cash flow from operations.
HESM had positive earnings in each of the past 5 years.
In the past 5 years HESM always reported a positive cash flow from operatings.
1.2 Ratios
HESM has a Return On Assets of 7.44%. This is in the better half of the industry: HESM outperforms 79.33% of its industry peers.
Looking at the Return On Equity, with a value of 57.64%, HESM belongs to the top of the industry, outperforming 94.23% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.74%, HESM belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is below the industry average of 21.83%.
The last Return On Invested Capital (18.74%) for HESM is above the 3 year average (18.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 57.64% | ||
| ROIC | 18.74% |
ROA(3y)3.61%
ROA(5y)2.58%
ROE(3y)37.04%
ROE(5y)30.61%
ROIC(3y)18.24%
ROIC(5y)17.21%
1.3 Margins
The Profit Margin of HESM (20.46%) is better than 75.96% of its industry peers.
HESM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 61.97%, HESM belongs to the top of the industry, outperforming 95.19% of the companies in the same industry.
HESM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.97% | ||
| PM (TTM) | 20.46% | ||
| GM | N/A |
OM growth 3Y0.57%
OM growth 5Y6.72%
PM growth 3Y57.01%
PM growth 5Y13.67%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HESM is creating value.
HESM has less shares outstanding than it did 1 year ago.
HESM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HESM has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of HESM is 5.32, which is a neutral value as it means it would take HESM, 5.32 years of fcf income to pay off all of its debts.
HESM's Debt to FCF ratio of 5.32 is fine compared to the rest of the industry. HESM outperforms 63.94% of its industry peers.
HESM has a Debt/Equity ratio of 6.58. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 6.58, HESM is doing worse than 89.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | N/A |
ROIC/WACC2.39
WACC7.85%
2.3 Liquidity
HESM has a Current Ratio of 0.75. This is a bad value and indicates that HESM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HESM (0.75) is worse than 71.15% of its industry peers.
A Quick Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, HESM is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
HESM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.49%, which is quite good.
The Earnings Per Share has been growing by 15.34% on average over the past years. This is quite good.
The Revenue has grown by 10.78% in the past year. This is quite good.
HESM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.01% yearly.
EPS 1Y (TTM)19.49%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%19.05%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
3.2 Future
The Earnings Per Share is expected to grow by 1.66% on average over the next years.
HESM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.72% yearly.
EPS Next Y17.49%
EPS Next 2Y7.91%
EPS Next 3Y7.89%
EPS Next 5Y1.66%
Revenue Next Year9.8%
Revenue Next 2Y4.72%
Revenue Next 3Y3.72%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.32, the valuation of HESM can be described as correct.
Based on the Price/Earnings ratio, HESM is valued a bit cheaper than 70.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. HESM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.98, which indicates a very decent valuation of HESM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HESM indicates a somewhat cheap valuation: HESM is cheaper than 66.35% of the companies listed in the same industry.
HESM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
HESM's Enterprise Value to EBITDA is on the same level as the industry average.
HESM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HESM is cheaper than 78.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.12 | ||
| EV/EBITDA | 8.98 |
4.3 Compensation for Growth
HESM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HESM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.7
PEG (5Y)0.8
EPS Next 2Y7.91%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.99%, HESM is a good candidate for dividend investing.
HESM's Dividend Yield is rather good when compared to the industry average which is at 3.91. HESM pays more dividend than 86.06% of the companies in the same industry.
HESM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.99% |
5.2 History
On average, the dividend of HESM grows each year by 16.02%, which is quite nice.
HESM has been paying a dividend for over 5 years, so it has already some track record.
HESM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)16.02%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
98.15% of the earnings are spent on dividend by HESM. This is not a sustainable payout ratio.
The dividend of HESM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP98.15%
EPS Next 2Y7.91%
EPS Next 3Y7.89%
34.73
+0.65 (+1.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.65%
Inst Owner Change-0.01%
Ins Owners0.18%
Ins Owner Change-27.61%
Market Cap7.21B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target37.3 (7.4%)
Short Float %6.51%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.99% |
Yearly Dividend1.06
Dividend Growth(5Y)16.02%
DP98.15%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.52%
Min EPS beat(2)8.99%
Max EPS beat(2)10.05%
EPS beat(4)3
Avg EPS beat(4)5.05%
Min EPS beat(4)-1.82%
Max EPS beat(4)10.05%
EPS beat(8)3
Avg EPS beat(8)-2.11%
EPS beat(12)5
Avg EPS beat(12)-2.15%
EPS beat(16)5
Avg EPS beat(16)-3.42%
Revenue beat(2)1
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.97%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.97%
Max Revenue beat(4)0.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)2
Avg Revenue beat(12)-1.34%
Revenue beat(16)4
Avg Revenue beat(16)-0.81%
PT rev (1m)-0.78%
PT rev (3m)-14.95%
EPS NQ rev (1m)4.18%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)1.83%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 11.98 | ||
| P/S | 4.47 | ||
| P/FCF | 10.12 | ||
| P/OCF | 7.24 | ||
| P/B | 12.6 | ||
| P/tB | 12.6 | ||
| EV/EBITDA | 8.98 |
EPS(TTM)2.82
EY8.12%
EPS(NY)2.9
Fwd EY8.35%
FCF(TTM)3.43
FCFY9.88%
OCF(TTM)4.8
OCFY13.82%
SpS7.77
BVpS2.76
TBVpS2.76
PEG (NY)0.7
PEG (5Y)0.8
Graham Number13.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.44% | ||
| ROE | 57.64% | ||
| ROCE | 23.72% | ||
| ROIC | 18.74% | ||
| ROICexc | 18.76% | ||
| ROICexgc | 18.76% | ||
| OM | 61.97% | ||
| PM (TTM) | 20.46% | ||
| GM | N/A | ||
| FCFM | 44.18% |
ROA(3y)3.61%
ROA(5y)2.58%
ROE(3y)37.04%
ROE(5y)30.61%
ROIC(3y)18.24%
ROIC(5y)17.21%
ROICexc(3y)18.26%
ROICexc(5y)17.23%
ROICexgc(3y)18.26%
ROICexgc(5y)17.23%
ROCE(3y)23.09%
ROCE(5y)21.79%
ROICexgc growth 3Y2.15%
ROICexgc growth 5Y14%
ROICexc growth 3Y2.15%
ROICexc growth 5Y14%
OM growth 3Y0.57%
OM growth 5Y6.72%
PM growth 3Y57.01%
PM growth 5Y13.67%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 134.47% | ||
| Cap/Sales | 17.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.32% | ||
| Profit Quality | 215.97% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | N/A |
F-Score8
WACC7.85%
ROIC/WACC2.39
Cap/Depr(3y)132.73%
Cap/Depr(5y)137.73%
Cap/Sales(3y)18.57%
Cap/Sales(5y)19.37%
Profit Quality(3y)522.92%
Profit Quality(5y)870.13%
High Growth Momentum
Growth
EPS 1Y (TTM)19.49%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%19.05%
EPS Next Y17.49%
EPS Next 2Y7.91%
EPS Next 3Y7.89%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
Revenue Next Year9.8%
Revenue Next 2Y4.72%
Revenue Next 3Y3.72%
Revenue Next 5YN/A
EBIT growth 1Y12.8%
EBIT growth 3Y8.12%
EBIT growth 5Y19.53%
EBIT Next Year35.17%
EBIT Next 3Y11.43%
EBIT Next 5Y7.72%
FCF growth 1Y14.99%
FCF growth 3Y0.1%
FCF growth 5Y31.01%
OCF growth 1Y18.46%
OCF growth 3Y5.73%
OCF growth 5Y14.84%
HESS MIDSTREAM LP - CLASS A / HESM FAQ
What is the fundamental rating for HESM stock?
ChartMill assigns a fundamental rating of 5 / 10 to HESM.
What is the valuation status for HESM stock?
ChartMill assigns a valuation rating of 6 / 10 to HESS MIDSTREAM LP - CLASS A (HESM). This can be considered as Fairly Valued.
What is the profitability of HESM stock?
HESS MIDSTREAM LP - CLASS A (HESM) has a profitability rating of 7 / 10.
Can you provide the financial health for HESM stock?
The financial health rating of HESS MIDSTREAM LP - CLASS A (HESM) is 3 / 10.
How sustainable is the dividend of HESS MIDSTREAM LP - CLASS A (HESM) stock?
The dividend rating of HESS MIDSTREAM LP - CLASS A (HESM) is 6 / 10 and the dividend payout ratio is 98.15%.