HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HESM - US4281031058 - Common Stock
34.83 USD
+0.38 (+1.1%)
35 USD
+0.17 (+0.49%)
HESM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. While HESM has a great profitability rating, there are quite some 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
HESM had positive earnings in the past year.
In the past year HESM had a positive cash flow from operations.
HESM had positive earnings in each of the past 5 years.
HESM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HESM has a better Return On Assets (7.44%) than 80.38% of its industry peers.
The Return On Equity of HESM (57.64%) is better than 94.74% of its industry peers.
The Return On Invested Capital of HESM (18.74%) is better than 96.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is below the industry average of 20.87%.
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
With a decent Profit Margin value of 20.46%, HESM is doing good in the industry, outperforming 76.08% of the companies in the same industry.
In the last couple of years the Profit Margin of HESM has grown nicely.
With an excellent Operating Margin value of 61.97%, HESM belongs to the best of the industry, outperforming 94.26% 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
HESM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HESM has less shares outstanding
The number of shares outstanding for HESM has been reduced compared to 5 years ago.
The debt/assets ratio for HESM has been reduced compared to a year ago.
2.2 Solvency
HESM has a debt to FCF ratio of 5.32. This is a neutral value as HESM would need 5.32 years to pay back of all of its debts.
HESM's Debt to FCF ratio of 5.32 is fine compared to the rest of the industry. HESM outperforms 64.59% of its industry peers.
A Debt/Equity ratio of 6.58 is on the high side and indicates that HESM has dependencies on debt financing.
HESM has a Debt to Equity ratio of 6.58. This is amonst the worse of the industry: HESM underperforms 91.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | N/A |
ROIC/WACC2.32
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
With a Current ratio value of 0.75, HESM is not doing good in the industry: 72.25% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.75, HESM is not doing good in the industry: 64.11% 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.
HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
The Revenue has grown by 10.78% 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 12.01% on average per year.
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 4.95% yearly.
EPS Next Y15.38%
EPS Next 2Y6.62%
EPS Next 3Y4.84%
EPS Next 5Y1.66%
Revenue Next Year9.66%
Revenue Next 2Y5.35%
Revenue Next 3Y4.95%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
HESM is valuated correctly with a Price/Earnings ratio of 12.35.
Compared to the rest of the industry, the Price/Earnings ratio of HESM indicates a somewhat cheap valuation: HESM is cheaper than 68.42% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HESM to the average of the S&P500 Index (26.54), we can say HESM is valued rather cheaply.
The Price/Forward Earnings ratio is 12.31, which indicates a correct valuation of HESM.
HESM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HESM is cheaper than 64.11% of the companies in the same industry.
HESM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HESM.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HESM indicates a somewhat cheap valuation: HESM is cheaper than 77.99% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 9.04 |
4.3 Compensation for Growth
The 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)0.8
PEG (5Y)0.81
EPS Next 2Y6.62%
EPS Next 3Y4.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.84%, HESM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.59, HESM pays a better dividend. On top of this HESM pays more dividend than 87.08% of the companies listed in the same industry.
HESM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
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.
As HESM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y6.62%
EPS Next 3Y4.84%
34.83
+0.38 (+1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change7.19%
Ins Owners0.18%
Ins Owner Change-29.46%
Market Cap7.23B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target37.59 (7.92%)
Short Float %5.54%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.84% |
Yearly Dividend1.06
Dividend Growth(5Y)16.02%
DP98.15%
Div Incr Years7
Div Non Decr Years7
Ex-Date
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)-5.49%
PT rev (3m)-20.22%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)-4.23%
EPS NY rev (1m)2.99%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.31%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 12.31 | ||
| P/S | 4.48 | ||
| P/FCF | 10.15 | ||
| P/OCF | 7.26 | ||
| P/B | 12.63 | ||
| P/tB | 12.63 | ||
| EV/EBITDA | 9.04 |
EPS(TTM)2.82
EY8.1%
EPS(NY)2.83
Fwd EY8.13%
FCF(TTM)3.43
FCFY9.85%
OCF(TTM)4.8
OCFY13.78%
SpS7.77
BVpS2.76
TBVpS2.76
PEG (NY)0.8
PEG (5Y)0.81
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
WACC8.07%
ROIC/WACC2.32
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 Y15.38%
EPS Next 2Y6.62%
EPS Next 3Y4.84%
EPS Next 5Y1.66%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
Revenue Next Year9.66%
Revenue Next 2Y5.35%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y12.8%
EBIT growth 3Y8.12%
EBIT growth 5Y19.53%
EBIT Next Year35.07%
EBIT Next 3Y11.88%
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 of HESS MIDSTREAM LP - CLASS A (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.
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 12.35 and the Price/Book (PB) ratio is 12.63.
How financially healthy is HESS MIDSTREAM LP - CLASS A?
The financial health rating of HESS MIDSTREAM LP - CLASS A (HESM) is 3 / 10.