HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
NYSE:HESM - US4281031058 - Common Stock
41.2 USD
-0.37 (-0.89%)
41.2 USD
0 (0%)
HESM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 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.
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
The Return On Assets of HESM (6.58%) is better than 70.48% of its industry peers.
HESM has a Return On Equity of 45.81%. This is amongst the best in the industry. HESM outperforms 93.81% of its industry peers.
HESM's Return On Invested Capital of 18.25% is amongst the best of the industry. HESM outperforms 94.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is significantly below the industry average of 23.42%.
The 3 year average ROIC (18.24%) for HESM is below the current ROIC(18.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 45.81% | ||
| ROIC | 18.25% |
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
Looking at the Profit Margin, with a value of 18.52%, HESM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
HESM's Profit Margin has improved in the last couple of years.
HESM has a better Operating Margin (61.91%) than 93.81% of its industry peers.
HESM's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 61.91% | ||
| PM (TTM) | 18.52% | ||
| 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
Compared to 5 years ago, HESM has less shares outstanding
Compared to 1 year ago, HESM has an improved debt to assets ratio.
2.2 Solvency
HESM has a debt to FCF ratio of 5.57. This is a neutral value as HESM would need 5.57 years to pay back of all of its debts.
The Debt to FCF ratio of HESM (5.57) is better than 61.90% of its industry peers.
HESM has a Debt/Equity ratio of 5.81. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.81, HESM is doing worse than 89.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 5.57 | ||
| Altman-Z | N/A |
ROIC/WACC2.06
WACC8.85%
2.3 Liquidity
HESM has a Current Ratio of 0.71. 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 Current ratio, with a value of 0.71, HESM is doing worse than 76.19% of the companies in the same industry.
HESM has a Quick Ratio of 0.71. 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 Quick ratio of HESM (0.71) is worse than 67.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.39% 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.
The Revenue has grown by 9.02% 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)17.39%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%25.42%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%13.32%
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 5.10% on average per year.
Based on estimates for the next years, HESM will show a quite strong growth in Revenue. The Revenue will grow by 9.74% on average per year.
EPS Next Y14.12%
EPS Next 2Y12.98%
EPS Next 3Y12.62%
EPS Next 5Y5.1%
Revenue Next Year11.9%
Revenue Next 2Y11.44%
Revenue Next 3Y9.74%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.26 indicates a correct valuation of HESM.
Compared to the rest of the industry, the Price/Earnings ratio of HESM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.08. HESM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.96, HESM is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as HESM.
HESM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
HESM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HESM is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HESM has a very decent profitability rating, which may justify a higher PE ratio.
HESM's earnings are expected to grow with 12.62% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)0.99
EPS Next 2Y12.98%
EPS Next 3Y12.62%
5. Dividend
5.1 Amount
HESM has a Yearly Dividend Yield of 7.09%, which is a nice return.
Compared to an average industry Dividend Yield of 6.11, HESM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, HESM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
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
99.14% of the earnings are spent on dividend by HESM. This is not a sustainable payout ratio.
The dividend of HESM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.14%
EPS Next 2Y12.98%
EPS Next 3Y12.62%
41.2
-0.37 (-0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.07%
Inst Owner Change2.76%
Ins Owners0.24%
Ins Owner Change-36.07%
Market Cap8.65B
Analysts80
Price Target47.12 (14.37%)
Short Float %6.46%
Short Ratio4.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.09% |
Yearly Dividend1.06
Dividend Growth(5Y)16.02%
DP99.14%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.99%
Min EPS beat(2)3%
Max EPS beat(2)8.99%
EPS beat(4)2
Avg EPS beat(4)1%
Min EPS beat(4)-6.17%
Max EPS beat(4)8.99%
EPS beat(8)3
Avg EPS beat(8)-3.14%
EPS beat(12)4
Avg EPS beat(12)-3.08%
EPS beat(16)4
Avg EPS beat(16)-4.2%
Revenue beat(2)1
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-1.87%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-1%
Min Revenue beat(4)-1.87%
Max Revenue beat(4)0.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.68%
Revenue beat(12)3
Avg Revenue beat(12)-0.88%
Revenue beat(16)5
Avg Revenue beat(16)-0.54%
PT rev (1m)5%
PT rev (3m)5%
EPS NQ rev (1m)-4.18%
EPS NQ rev (3m)-6.2%
EPS NY rev (1m)0.39%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 12.96 | ||
| P/S | 5.51 | ||
| P/FCF | 12.99 | ||
| P/OCF | 8.99 | ||
| P/B | 13.63 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)2.7
EY6.55%
EPS(NY)3.18
Fwd EY7.71%
FCF(TTM)3.17
FCFY7.7%
OCF(TTM)4.58
OCFY11.12%
SpS7.48
BVpS3.02
TBVpS3.02
PEG (NY)1.08
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.58% | ||
| ROE | 45.81% | ||
| ROCE | 23.1% | ||
| ROIC | 18.25% | ||
| ROICexc | 18.27% | ||
| ROICexgc | 18.27% | ||
| OM | 61.91% | ||
| PM (TTM) | 18.52% | ||
| GM | N/A | ||
| FCFM | 42.43% |
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%
ROICexcg growth 3Y2.15%
ROICexcg 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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.81 | ||
| Debt/FCF | 5.57 | ||
| Debt/EBITDA | 3.13 | ||
| Cap/Depr | 143.76% | ||
| Cap/Sales | 18.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.7% | ||
| Profit Quality | 229.08% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | N/A |
F-Score7
WACC8.85%
ROIC/WACC2.06
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)17.39%
EPS 3Y12.26%
EPS 5Y15.34%
EPS Q2Q%25.42%
EPS Next Y14.12%
EPS Next 2Y12.98%
EPS Next 3Y12.62%
EPS Next 5Y5.1%
Revenue 1Y (TTM)9.02%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%13.32%
Revenue Next Year11.9%
Revenue Next 2Y11.44%
Revenue Next 3Y9.74%
Revenue Next 5YN/A
EBIT growth 1Y11.2%
EBIT growth 3Y8.12%
EBIT growth 5Y19.53%
EBIT Next Year36.76%
EBIT Next 3Y16.98%
EBIT Next 5Y10.78%
FCF growth 1Y6.49%
FCF growth 3Y0.1%
FCF growth 5Y31.01%
OCF growth 1Y11.86%
OCF growth 3Y5.73%
OCF growth 5Y14.84%