HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HESM - US4281031058 - Common Stock
34.015 USD
+0.42 (+1.27%)
Overall HESM gets a fundamental rating of 5 out of 10. We evaluated HESM against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HESM was profitable.
HESM had a positive operating cash flow in the past year.
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's Return On Assets of 7.44% is fine compared to the rest 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.
HESM has a Return On Invested Capital of 18.74%. This is amongst the best in the industry. HESM outperforms 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.
HESM has a better Operating Margin (61.97%) than 95.19% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HESM is creating value.
Compared to 1 year ago, HESM has less shares outstanding
HESM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HESM has an improved debt to assets ratio.
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.
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/WACC2.38
WACC7.88%
2.3 Liquidity
A Current Ratio of 0.75 indicates that HESM may have some problems paying 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.
HESM has a worse Quick ratio (0.75) than 63.46% of its industry peers.
| 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.
HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
Looking at the last year, HESM shows a quite strong growth in Revenue. The Revenue has grown by 10.78% in the last year.
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
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.
The Revenue is expected to grow by 3.72% on average over the next years.
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
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.
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
HESM is valuated correctly with a Price/Earnings ratio of 12.06.
Based on the Price/Earnings ratio, HESM is valued a bit cheaper than 71.15% of the companies in the same industry.
HESM is valuated cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.73, the valuation of HESM can be described as very reasonable.
HESM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HESM is cheaper than 66.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, HESM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.06 | ||
| Fwd PE | 11.73 |
4.2 Price Multiples
HESM's Enterprise Value to EBITDA ratio is in line with 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 | 9.91 | ||
| 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.
The decent profitability rating of HESM 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
With a Yearly Dividend Yield of 8.75%, HESM is a good candidate for dividend investing.
HESM's Dividend Yield is rather good when compared to the industry average which is at 3.96. 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.75% |
5.2 History
The dividend of HESM is nicely growing with an annual growth rate of 16.02%!
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.
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%
NYSE:HESM (1/9/2026, 11:04:07 AM)
34.015
+0.42 (+1.27%)
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 Cap7.06B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target37.3 (9.66%)
Short Float %6.51%
Short Ratio5.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.75% |
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 | 12.06 | ||
| Fwd PE | 11.73 | ||
| P/S | 4.38 | ||
| P/FCF | 9.91 | ||
| P/OCF | 7.09 | ||
| P/B | 12.34 | ||
| P/tB | 12.34 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)2.82
EY8.29%
EPS(NY)2.9
Fwd EY8.52%
FCF(TTM)3.43
FCFY10.09%
OCF(TTM)4.8
OCFY14.11%
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
WACC7.88%
ROIC/WACC2.38
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 7 / 10 to HESS MIDSTREAM LP - CLASS A (HESM). This can be considered as Undervalued.
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%.