HESS MIDSTREAM LP - CLASS A (HESM) Stock Fundamental Analysis
USA - NYSE:HESM - US4281031058 - Common Stock
32.11 USD
-0.24 (-0.74%)
Taking everything into account, HESM scores 5 out of 10 in our fundamental rating. HESM was compared to 210 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
HESM had positive earnings in the past year.
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.
1.2 Ratios
HESM has a Return On Assets of 7.44%. This is in the better half of the industry: HESM outperforms 78.10% of its industry peers.
HESM has a better Return On Equity (57.64%) than 94.29% of its industry peers.
HESM has a Return On Invested Capital of 18.74%. This is amongst the best in the industry. HESM outperforms 95.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HESM is below the industry average of 21.67%.
The 3 year average ROIC (18.24%) for HESM is below the current ROIC(18.74%), indicating increased profibility in the last year.
| 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 74.29% of its industry peers.
In the last couple of years the Profit Margin of HESM has grown nicely.
HESM has a Operating Margin of 61.97%. This is amongst the best in the industry. HESM outperforms 93.81% of its industry peers.
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
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.
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 has a better Debt to FCF ratio (5.32) than 63.81% 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.
Looking at the Debt to Equity ratio, with a value of 6.58, HESM is doing worse than 90.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.58 | ||
| Debt/FCF | 5.32 | ||
| Altman-Z | N/A |
ROIC/WACC2.31
WACC8.12%
2.3 Liquidity
A Current Ratio of 0.75 indicates that HESM may have some problems paying its short term obligations.
HESM has a Current ratio of 0.75. This is in the lower half of the industry: HESM underperforms 72.38% of its industry peers.
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: 62.38% 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
The Earnings Per Share has grown by an nice 19.49% over the past year.
HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.34% yearly.
HESM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.78%.
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
HESM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.50% yearly.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y12.04%
EPS Next 2Y5.78%
EPS Next 3Y5.3%
EPS Next 5Y1.5%
Revenue Next Year10.59%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.39, which indicates a very decent valuation of HESM.
Based on the Price/Earnings ratio, HESM is valued a bit cheaper than 70.95% of the companies in the same industry.
HESM is valuated cheaply when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.53, 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 65.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.39. HESM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HESM.
Based on the Price/Free Cash Flow ratio, HESM is valued cheaper than 80.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.46 | ||
| EV/EBITDA | 8.74 |
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)0.95
PEG (5Y)0.74
EPS Next 2Y5.78%
EPS Next 3Y5.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.12%, HESM is a good candidate for dividend investing.
The stock price of HESM dropped by -22.53% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 5.90, HESM pays a better dividend. On top of this HESM pays more dividend than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, HESM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
5.2 History
On average, the dividend of HESM grows each year by 16.02%, which is quite nice.
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 2Y5.78%
EPS Next 3Y5.3%
NYSE:HESM (11/19/2025, 2:58:17 PM)
32.11
-0.24 (-0.74%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners88.16%
Inst Owner Change6.6%
Ins Owners0.16%
Ins Owner Change-30.23%
Market Cap6.75B
Revenue(TTM)1.61B
Net Income(TTM)330.00M
Analysts72.31
Price Target39.78 (23.89%)
Short Float %5.85%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.12% |
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)-9.3%
PT rev (3m)-15.58%
EPS NQ rev (1m)-3.25%
EPS NQ rev (3m)-7.11%
EPS NY rev (1m)-3.11%
EPS NY rev (3m)-1.44%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)-0.83%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 11.53 | ||
| P/S | 4.18 | ||
| P/FCF | 9.46 | ||
| P/OCF | 6.77 | ||
| P/B | 11.78 | ||
| P/tB | 11.78 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)2.82
EY8.78%
EPS(NY)2.79
Fwd EY8.68%
FCF(TTM)3.39
FCFY10.57%
OCF(TTM)4.74
OCFY14.78%
SpS7.68
BVpS2.73
TBVpS2.73
PEG (NY)0.95
PEG (5Y)0.74
Graham Number13.15
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
WACC8.12%
ROIC/WACC2.31
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 Y12.04%
EPS Next 2Y5.78%
EPS Next 3Y5.3%
EPS Next 5Y1.5%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.5%
Revenue growth 5Y12.01%
Sales Q2Q%11.2%
Revenue Next Year10.59%
Revenue Next 2Y7.36%
Revenue Next 3Y5.52%
Revenue Next 5YN/A
EBIT growth 1Y12.8%
EBIT growth 3Y8.12%
EBIT growth 5Y19.53%
EBIT Next Year37.29%
EBIT Next 3Y16.33%
EBIT Next 5Y7.62%
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 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.
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 11.39 and the Price/Book (PB) ratio is 11.78.
How financially healthy is HESS MIDSTREAM LP - CLASS A?
The financial health rating of HESS MIDSTREAM LP - CLASS A (HESM) is 3 / 10.