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

NYSE:HESM • US4281031058

39.26 USD
+0.39 (+1%)
At close: Mar 6, 2026
39.26 USD
0 (0%)
After Hours: 3/6/2026, 8:23:59 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

Overall HESM gets a fundamental rating of 5 out of 10. We evaluated HESM against 207 industry peers in the Oil, Gas & Consumable Fuels industry. HESM has an excellent profitability rating, but there are concerns on its financial health. HESM has a decent growth rate and is not valued too expensively. Finally HESM also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. HESM Profitability Analysis

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.
  • 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

  • With an excellent Return On Assets value of 8.04%, HESM belongs to the best of the industry, outperforming 82.13% of the companies in the same industry.
  • With an excellent Return On Equity value of 62.10%, HESM belongs to the best of the industry, outperforming 94.69% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 21.11%, HESM belongs to the top of the industry, outperforming 96.62% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for HESM is in line with the industry average of 22.17%.
  • The 3 year average ROIC (20.58%) for HESM is below the current ROIC(21.11%), indicating increased profibility in the last year.
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 79.71% 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 95.17% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HESM is creating value.
  • The number of shares outstanding for HESM has been reduced compared to 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

  • HESM has a debt to FCF ratio of 5.18. This is a neutral value as HESM would need 5.18 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 5.18, HESM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • 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 89.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.58
Debt/FCF 5.18
Altman-Z N/A
ROIC/WACC2.84
WACC7.44%
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.
  • Looking at the Current ratio, with a value of 0.85, HESM is doing worse than 65.70% of the companies in the same industry.
  • 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 42.03% 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

  • 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 0.91% yearly.
EPS Next Y0.2%
EPS Next 2Y5.1%
EPS Next 3Y-2.74%
EPS Next 5Y0.47%
Revenue Next Year-1.02%
Revenue Next 2Y0.51%
Revenue Next 3Y0.91%
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.
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 13.73, HESM is valued correctly.
  • Based on the Price/Earnings ratio, HESM is valued a bit cheaper than 70.53% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.29. HESM is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 13.70, the valuation of HESM can be described as correct.
  • HESM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HESM is cheaper than 70.05% 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 24.57.
Industry RankSector Rank
PE 13.73
Fwd PE 13.7
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 83.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.2
EV/EBITDA 9.69
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 an expensive valuation of the company.
  • The excellent profitability rating of HESM may justify a higher PE ratio.
  • HESM's earnings are expected to decrease with -2.74% in the coming years. This may justify a cheaper valuation.
PEG (NY)69.88
PEG (5Y)0.81
EPS Next 2Y5.1%
EPS Next 3Y-2.74%

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7

5. HESM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 7.86%, HESM is a good candidate for dividend investing.
  • HESM's Dividend Yield is rather good when compared to the industry average which is at 3.39. HESM pays more dividend than 87.92% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, HESM pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.86%

5.2 History

  • On average, the dividend of HESM grows each year by 71.44%, which is quite nice.
  • HESM has paid a dividend for at least 10 years, which is a reliable track record.
  • HESM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
  • The dividend of HESM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.23%
EPS Next 2Y5.1%
EPS Next 3Y-2.74%
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 (3/6/2026, 8:23:59 PM)

After market: 39.26 0 (0%)

39.26

+0.39 (+1%)

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-1.13%
Ins Owners0.18%
Ins Owner Change7.91%
Market Cap8.15B
Revenue(TTM)1.62B
Net Income(TTM)352.90M
Analysts51.67
Price Target37.3 (-4.99%)
Short Float %6.74%
Short Ratio5.99
Dividend
Industry RankSector Rank
Dividend Yield 7.86%
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)0%
PT rev (3m)-0.71%
EPS NQ rev (1m)-2.85%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)2.86%
Revenue NQ rev (1m)-3.53%
Revenue NQ rev (3m)-4.44%
Revenue NY rev (1m)-1.08%
Revenue NY rev (3m)-5.88%
Valuation
Industry RankSector Rank
PE 13.73
Fwd PE 13.7
P/S 5.03
P/FCF 11.2
P/OCF 8.29
P/B 14.35
P/tB 14.35
EV/EBITDA 9.69
EPS(TTM)2.86
EY7.28%
EPS(NY)2.87
Fwd EY7.3%
FCF(TTM)3.51
FCFY8.93%
OCF(TTM)4.74
OCFY12.07%
SpS7.81
BVpS2.74
TBVpS2.74
PEG (NY)69.88
PEG (5Y)0.81
Graham Number13.27
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
WACC7.44%
ROIC/WACC2.84
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 Y0.2%
EPS Next 2Y5.1%
EPS Next 3Y-2.74%
EPS Next 5Y0.47%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y8.33%
Revenue growth 5Y8.23%
Sales Q2Q%2.1%
Revenue Next Year-1.02%
Revenue Next 2Y0.51%
Revenue Next 3Y0.91%
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 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 8 / 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%.