HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HESM - US4281031058 - Common Stock
33.96 USD
+0.37 (+1.1%)
34.1 USD
+0.14 (+0.41%)
We assign a fundamental rating of 5 out of 10 to HESM. HESM was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While HESM belongs to the best of the industry regarding profitability, there are concerns on its financial health. HESM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HESM had positive earnings in the past year.
In the past year HESM had a positive cash flow from operations.
In the past 5 years HESM has always been profitable.
In the past 5 years HESM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.44%, HESM is in the better half of the industry, outperforming 79.33% of the companies in the same industry.
HESM has a Return On Equity of 57.64%. This is amongst the best in the industry. HESM outperforms 94.23% of its industry peers.
The Return On Invested Capital of HESM (18.74%) is better than 96.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is below the industry average of 21.28%.
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
HESM has a better Profit Margin (20.46%) than 75.96% of its industry peers.
In the last couple of years the Profit Margin of HESM has grown nicely.
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.
In the last couple of years the Operating Margin of HESM has grown nicely.
| 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.
The number of shares outstanding for HESM has been reduced compared to 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.
With a decent Debt to FCF ratio value of 5.32, HESM is doing good in the industry, outperforming 63.94% of the companies in the same industry.
HESM has a Debt/Equity ratio of 6.58. This is a high value indicating a heavy dependency on external financing.
HESM's Debt to Equity ratio of 6.58 is on the low side compared to the rest of the industry. HESM is outperformed by 89.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | N/A |
ROIC/WACC2.37
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.75, HESM is doing worse than 71.15% of the companies in the same industry.
HESM has a Quick 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.
HESM has a Quick ratio of 0.75. This is in the lower half of the industry: HESM underperforms 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.49% over the past year.
Measured over the past years, HESM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.34% on average per year.
Looking at the last year, HESM shows a quite strong growth in Revenue. The Revenue has grown by 10.78% in the last year.
The Revenue has been growing by 12.01% on average over the past years. This is quite good.
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
Based on estimates for the next years, HESM will show a small growth in Earnings Per Share. The EPS will grow by 1.66% on average per year.
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
The Price/Earnings ratio is 12.04, which indicates a correct valuation of HESM.
HESM's Price/Earnings ratio is a bit cheaper when compared to the industry. HESM is cheaper than 71.15% of the companies in the same industry.
HESM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 11.71 indicates a reasonable valuation of HESM.
66.83% of the companies in the same industry are more expensive than HESM, based on the Price/Forward Earnings ratio.
HESM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 11.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HESM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, HESM is valued a bit cheaper than the industry average as 78.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.9 | ||
| EV/EBITDA | 8.89 |
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)0.69
PEG (5Y)0.79
EPS Next 2Y7.91%
EPS Next 3Y7.89%
5. Dividend
5.1 Amount
HESM has a Yearly Dividend Yield of 8.99%, which is a nice return.
HESM's Dividend Yield is rather good when compared to the industry average which is at 3.93. 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 1.90.
| 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
HESM pays out 98.15% of its income as dividend. This is not a sustainable payout ratio.
HESM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP98.15%
EPS Next 2Y7.91%
EPS Next 3Y7.89%
33.96
+0.37 (+1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.65%
Inst Owner Change0%
Ins Owners0.18%
Ins Owner Change-27.61%
Market Cap7.05B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target37.3 (9.84%)
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)-0.71%
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 | 12.04 | ||
| Fwd PE | 11.71 | ||
| P/S | 4.37 | ||
| P/FCF | 9.9 | ||
| P/OCF | 7.08 | ||
| P/B | 12.32 | ||
| P/tB | 12.32 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)2.82
EY8.3%
EPS(NY)2.9
Fwd EY8.54%
FCF(TTM)3.43
FCFY10.11%
OCF(TTM)4.8
OCFY14.13%
SpS7.77
BVpS2.76
TBVpS2.76
PEG (NY)0.69
PEG (5Y)0.79
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
WACC7.91%
ROIC/WACC2.37
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%.