HESS MIDSTREAM LP - CLASS A (HESM) Fundamental Analysis & Valuation

NYSE:HESM • US4281031058

Current stock price

37.68 USD
+0.42 (+1.13%)
Last:

This HESM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HESM Profitability Analysis

1.1 Basic Checks

  • In the past year HESM was profitable.
  • In the past year HESM had a positive cash flow from operations.
  • In the past 5 years HESM has always been profitable.
  • Each year in the past 5 years HESM had a positive operating cash flow.
HESM Yearly Net Income VS EBIT VS OCF VS FCFHESM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.04%, HESM belongs to the top of the industry, outperforming 80.38% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 62.10%, HESM belongs to the top of the industry, outperforming 94.26% of the companies in the same industry.
  • HESM has a Return On Invested Capital of 21.11%. This is amongst the best in the industry. HESM outperforms 96.65% of its industry peers.
  • HESM had an Average Return On Invested Capital over the past 3 years of 20.58%. This is below the industry average of 22.73%.
  • The last Return On Invested Capital (21.11%) for HESM is above the 3 year average (20.58%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.04%
ROE 62.1%
ROIC 21.11%
ROA(3y)5.52%
ROA(5y)4.04%
ROE(3y)46.33%
ROE(5y)39.19%
ROIC(3y)20.58%
ROIC(5y)20.27%
HESM Yearly ROA, ROE, ROICHESM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

1.3 Margins

  • HESM has a better Profit Margin (21.77%) than 77.99% of its industry peers.
  • HESM's Profit Margin has improved in the last couple of years.
  • HESM has a better Operating Margin (62.18%) than 95.22% of its industry peers.
  • HESM's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 62.18%
PM (TTM) 21.77%
GM N/A
OM growth 3Y0.07%
OM growth 5Y3.32%
PM growth 3Y49.01%
PM growth 5Y58.18%
GM growth 3YN/A
GM growth 5YN/A
HESM Yearly Profit, Operating, Gross MarginsHESM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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3

2. HESM Health Analysis

2.1 Basic Checks

  • HESM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • HESM has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for HESM has been reduced compared to 5 years ago.
  • Compared to 1 year ago, HESM has a worse debt to assets ratio.
HESM Yearly Shares OutstandingHESM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
HESM Yearly Total Debt VS Total AssetsHESM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • The Debt to FCF ratio of HESM is 5.18, which is a neutral value as it means it would take HESM, 5.18 years of fcf income to pay off all of its debts.
  • HESM's Debt to FCF ratio of 5.18 is fine compared to the rest of the industry. HESM outperforms 67.94% 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.
  • HESM has a worse Debt to Equity ratio (6.58) than 88.04% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.58
Debt/FCF 5.18
Altman-Z N/A
ROIC/WACC2.83
WACC7.46%
HESM Yearly LT Debt VS Equity VS FCFHESM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • A Current Ratio of 0.85 indicates that HESM may have some problems paying its short term obligations.
  • HESM has a worse Current ratio (0.85) than 65.55% of its industry peers.
  • HESM has a Quick Ratio of 0.85. 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 (0.85) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.85
HESM Yearly Current Assets VS Current LiabilitesHESM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M

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5

3. HESM Growth Analysis

3.1 Past

  • HESM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.86%, which is quite good.
  • The Earnings Per Share has been growing by 16.90% on average over the past years. This is quite good.
  • The Revenue has grown by 8.41% in the past year. This is quite good.
  • Measured over the past years, HESM shows a quite strong growth in Revenue. The Revenue has been growing by 8.23% on average per year.
EPS 1Y (TTM)14.86%
EPS 3Y12.48%
EPS 5Y16.9%
EPS Q2Q%5.88%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y8.33%
Revenue growth 5Y8.23%
Sales Q2Q%2.1%

3.2 Future

  • The Earnings Per Share is expected to grow by 0.47% 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 1.54% yearly.
EPS Next Y4.07%
EPS Next 2Y4.82%
EPS Next 3Y5.37%
EPS Next 5Y0.47%
Revenue Next Year-1.2%
Revenue Next 2Y0.93%
Revenue Next 3Y1.54%
Revenue Next 5YN/A

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 decreasing.
  • 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.
HESM Yearly Revenue VS EstimatesHESM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B
HESM Yearly EPS VS EstimatesHESM Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1 2 3

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6

4. HESM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.17, HESM is valued correctly.
  • Based on the Price/Earnings ratio, HESM is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of HESM to the average of the S&P500 Index (27.66), we can say HESM is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 12.66, HESM is valued correctly.
  • 69.38% of the companies in the same industry are more expensive than HESM, based on the Price/Forward Earnings ratio.
  • HESM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.00.
Industry RankSector Rank
PE 13.17
Fwd PE 12.66
HESM Price Earnings VS Forward Price EarningsHESM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
  • HESM's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HESM is cheaper than 81.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.68
EV/EBITDA 9.38
HESM Per share dataHESM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HESM does not grow enough to justify the current Price/Earnings ratio.
  • HESM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.24
PEG (5Y)0.78
EPS Next 2Y4.82%
EPS Next 3Y5.37%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. HESM Dividend Analysis

5.1 Amount

  • HESM has a Yearly Dividend Yield of 8.09%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.26, HESM pays a better dividend. On top of this HESM pays more dividend than 89.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, HESM pays a better dividend.
Industry RankSector Rank
Dividend Yield 8.09%

5.2 History

  • The dividend of HESM is nicely growing with an annual growth rate of 71.44%!
  • HESM has paid a dividend for at least 10 years, which is a reliable track record.
  • As HESM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)71.44%
Div Incr Years8
Div Non Decr Years8
HESM Yearly Dividends per shareHESM Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • HESM pays out 99.23% 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.
DP99.23%
EPS Next 2Y4.82%
EPS Next 3Y5.37%
HESM Yearly Income VS Free CF VS DividendHESM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
HESM Dividend Payout.HESM Dividend Payout, showing the Payout Ratio.HESM Dividend Payout.PayoutRetained Earnings

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HESM Fundamentals: All Metrics, Ratios and Statistics

HESS MIDSTREAM LP - CLASS A

NYSE:HESM (4/22/2026, 10:21:02 AM)

37.68

+0.42 (+1.13%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-02
Earnings (Next)05-04
Inst Owners95.64%
Inst Owner Change-0.11%
Ins Owners0.16%
Ins Owner Change4.42%
Market Cap7.78B
Revenue(TTM)1.62B
Net Income(TTM)352.90M
Analysts51.67
Price Target38.59 (2.42%)
Short Float %6.1%
Short Ratio5.29
Dividend
Industry RankSector Rank
Dividend Yield 8.09%
Yearly Dividend1.65
Dividend Growth(5Y)71.44%
DP99.23%
Div Incr Years8
Div Non Decr Years8
Ex-Date02-05
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.42%
Min EPS beat(2)-1.22%
Max EPS beat(2)10.05%
EPS beat(4)3
Avg EPS beat(4)5.2%
Min EPS beat(4)-1.22%
Max EPS beat(4)10.05%
EPS beat(8)3
Avg EPS beat(8)-0.53%
EPS beat(12)5
Avg EPS beat(12)-1.28%
EPS beat(16)5
Avg EPS beat(16)-2.53%
Revenue beat(2)0
Avg Revenue beat(2)-3.48%
Min Revenue beat(2)-4.98%
Max Revenue beat(2)-1.97%
Revenue beat(4)1
Avg Revenue beat(4)-2.15%
Min Revenue beat(4)-4.98%
Max Revenue beat(4)0.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.72%
Revenue beat(12)2
Avg Revenue beat(12)-1.26%
Revenue beat(16)3
Avg Revenue beat(16)-1.15%
PT rev (1m)3.45%
PT rev (3m)3.45%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)3.43%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.26%
Valuation
Industry RankSector Rank
PE 13.17
Fwd PE 12.66
P/S 4.8
P/FCF 10.68
P/OCF 7.91
P/B 13.69
P/tB 13.69
EV/EBITDA 9.38
EPS(TTM)2.86
EY7.59%
EPS(NY)2.98
Fwd EY7.9%
FCF(TTM)3.53
FCFY9.36%
OCF(TTM)4.76
OCFY12.64%
SpS7.85
BVpS2.75
TBVpS2.75
PEG (NY)3.24
PEG (5Y)0.78
Graham Number13.308 (-64.68%)
Profitability
Industry RankSector Rank
ROA 8.04%
ROE 62.1%
ROCE 24%
ROIC 21.11%
ROICexc 21.12%
ROICexgc 21.12%
OM 62.18%
PM (TTM) 21.77%
GM N/A
FCFM 44.91%
ROA(3y)5.52%
ROA(5y)4.04%
ROE(3y)46.33%
ROE(5y)39.19%
ROIC(3y)20.58%
ROIC(5y)20.27%
ROICexc(3y)20.6%
ROICexc(5y)20.29%
ROICexgc(3y)20.6%
ROICexgc(5y)20.29%
ROCE(3y)23.4%
ROCE(5y)23.04%
ROICexgc growth 3Y1.3%
ROICexgc growth 5Y6.22%
ROICexc growth 3Y1.3%
ROICexc growth 5Y6.22%
OM growth 3Y0.07%
OM growth 5Y3.32%
PM growth 3Y49.01%
PM growth 5Y58.18%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 6.58
Debt/FCF 5.18
Debt/EBITDA 3.06
Cap/Depr 119.38%
Cap/Sales 15.77%
Interest Coverage 250
Cash Conversion 80.49%
Profit Quality 206.35%
Current Ratio 0.85
Quick Ratio 0.85
Altman-Z N/A
F-Score8
WACC7.46%
ROIC/WACC2.83
Cap/Depr(3y)128.73%
Cap/Depr(5y)123.23%
Cap/Sales(3y)17.6%
Cap/Sales(5y)17.01%
Profit Quality(3y)344.23%
Profit Quality(5y)627.57%
High Growth Momentum
Growth
EPS 1Y (TTM)14.86%
EPS 3Y12.48%
EPS 5Y16.9%
EPS Q2Q%5.88%
EPS Next Y4.07%
EPS Next 2Y4.82%
EPS Next 3Y5.37%
EPS Next 5Y0.47%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y8.33%
Revenue growth 5Y8.23%
Sales Q2Q%2.1%
Revenue Next Year-1.2%
Revenue Next 2Y0.93%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y9.7%
EBIT growth 3Y8.41%
EBIT growth 5Y11.83%
EBIT Next Year21.61%
EBIT Next 3Y9.02%
EBIT Next 5Y6.39%
FCF growth 1Y14.82%
FCF growth 3Y5.34%
FCF growth 5Y16.41%
OCF growth 1Y4.63%
OCF growth 3Y4.54%
OCF growth 5Y8.92%

HESS MIDSTREAM LP - CLASS A / HESM Fundamental Analysis FAQ

What is the fundamental rating for HESM stock?

ChartMill assigns a fundamental rating of 5 / 10 to HESM.


Can you provide the valuation status for HESS MIDSTREAM LP - CLASS A?

ChartMill assigns a valuation rating of 6 / 10 to HESS MIDSTREAM LP - CLASS A (HESM). This can be considered as Fairly Valued.


How profitable is HESS MIDSTREAM LP - CLASS A (HESM) stock?

HESS MIDSTREAM LP - CLASS A (HESM) has a profitability rating of 7 / 10.


What are the PE and PB ratios of HESS MIDSTREAM LP - CLASS A (HESM) stock?

The Price/Earnings (PE) ratio for HESS MIDSTREAM LP - CLASS A (HESM) is 13.17 and the Price/Book (PB) ratio is 13.69.


Can you provide the financial health for HESM stock?

The financial health rating of HESS MIDSTREAM LP - CLASS A (HESM) is 3 / 10.