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

NYSE:HESM • US4281031058

Current stock price

39.79 USD
-0.25 (-0.62%)
At close:
39.9191 USD
+0.13 (+0.32%)
After Hours:

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.
  • 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.
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

  • HESM's Return On Assets of 8.04% is amongst the best of the industry. HESM outperforms 80.86% of its industry peers.
  • HESM has a better Return On Equity (62.10%) than 94.26% of its industry peers.
  • 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 23.03%.
  • 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

  • Looking at the Profit Margin, with a value of 21.77%, HESM is in the better half of the industry, outperforming 77.51% 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 62.18%, HESM belongs to the best of the industry, outperforming 95.22% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HESM has grown nicely.
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

  • 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.
  • 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 has a Debt to FCF ratio of 5.18. This is in the better half of the industry: HESM outperforms 67.46% 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 87.56% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.58
Debt/FCF 5.18
Altman-Z N/A
ROIC/WACC2.76
WACC7.65%
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

  • HESM has a Current 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.
  • The Current ratio of HESM (0.85) is worse than 66.03% 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.
  • Looking at the Quick ratio, with a value of 0.85, HESM is in line with its industry, outperforming 41.63% of the companies in the same 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.
  • HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.90% yearly.
  • Looking at the last year, HESM shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
  • 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

  • Based on estimates for the next years, HESM will show a small growth in Earnings Per Share. The EPS will grow by 0.47% on average per year.
  • The Revenue is expected to grow by 1.09% on average over the next years.
EPS Next Y0.62%
EPS Next 2Y3.76%
EPS Next 3Y4.03%
EPS Next 5Y0.47%
Revenue Next Year-1.14%
Revenue Next 2Y0.45%
Revenue Next 3Y1.09%
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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5

4. HESM Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 13.91, HESM is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of HESM indicates a somewhat cheap valuation: HESM is cheaper than 72.73% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of HESM to the average of the S&P500 Index (24.89), we can say HESM is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 13.83, HESM is valued correctly.
  • 76.08% of the companies in the same industry are more expensive than HESM, based on the Price/Forward Earnings ratio.
  • HESM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.91
Fwd PE 13.83
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 81.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.28
EV/EBITDA 9.81
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.
  • The decent profitability rating of HESM may justify a higher PE ratio.
PEG (NY)22.58
PEG (5Y)0.82
EPS Next 2Y3.76%
EPS Next 3Y4.03%

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7

5. HESM Dividend Analysis

5.1 Amount

  • HESM has a Yearly Dividend Yield of 7.63%, which is a nice return.
  • HESM's Dividend Yield is rather good when compared to the industry average which is at 3.20. HESM pays more dividend than 86.12% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, HESM pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.63%

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 Years7
Div Non Decr Years7
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 2Y3.76%
EPS Next 3Y4.03%
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 (3/27/2026, 8:23:24 PM)

After market: 39.9191 +0.13 (+0.32%)

39.79

-0.25 (-0.62%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)02-02
Earnings (Next)04-28
Inst Owners95.08%
Inst Owner Change-1.15%
Ins Owners0.18%
Ins Owner Change4.42%
Market Cap8.22B
Revenue(TTM)1.62B
Net Income(TTM)352.90M
Analysts51.67
Price Target37.91 (-4.72%)
Short Float %7.04%
Short Ratio5.99
Dividend
Industry RankSector Rank
Dividend Yield 7.63%
Yearly Dividend1.65
Dividend Growth(5Y)71.44%
DP99.23%
Div Incr Years7
Div Non Decr Years7
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)1.63%
PT rev (3m)1.63%
EPS NQ rev (1m)4.67%
EPS NQ rev (3m)0.9%
EPS NY rev (1m)0.42%
EPS NY rev (3m)-0.76%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.2%
Valuation
Industry RankSector Rank
PE 13.91
Fwd PE 13.83
P/S 5.07
P/FCF 11.28
P/OCF 8.35
P/B 14.46
P/tB 14.46
EV/EBITDA 9.81
EPS(TTM)2.86
EY7.19%
EPS(NY)2.88
Fwd EY7.23%
FCF(TTM)3.53
FCFY8.86%
OCF(TTM)4.76
OCFY11.97%
SpS7.85
BVpS2.75
TBVpS2.75
PEG (NY)22.58
PEG (5Y)0.82
Graham Number13.31
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
WACC7.65%
ROIC/WACC2.76
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 Y0.62%
EPS Next 2Y3.76%
EPS Next 3Y4.03%
EPS Next 5Y0.47%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y8.33%
Revenue growth 5Y8.23%
Sales Q2Q%2.1%
Revenue Next Year-1.14%
Revenue Next 2Y0.45%
Revenue Next 3Y1.09%
Revenue Next 5YN/A
EBIT growth 1Y9.7%
EBIT growth 3Y8.41%
EBIT growth 5Y11.83%
EBIT Next Year21.61%
EBIT Next 3Y8.43%
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.


What is the valuation status for HESM stock?

ChartMill assigns a valuation rating of 5 / 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 7 / 10 and the dividend payout ratio is 99.23%.