HESS MIDSTREAM LP - CLASS A (HESM)

US4281031058 - Common Stock

36.13  +0.3 (+0.84%)

After market: 36.13 0 (0%)

Fundamental Rating

4

Overall HESM gets a fundamental rating of 4 out of 10. We evaluated HESM against 214 industry peers in the Oil, Gas & Consumable Fuels industry. HESM has a medium profitability rating, but doesn't score so well on its financial health evaluation. HESM has a decent growth rate and is not valued too expensively.



6

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.
In the past 5 years HESM has always been profitable.
Each year in the past 5 years HESM had a positive operating cash flow.

1.2 Ratios

HESM's Return On Assets of 3.13% is on the low side compared to the rest of the industry. HESM is outperformed by 70.89% of its industry peers.
HESM's Return On Equity of 34.86% is amongst the best of the industry. HESM outperforms 82.16% of its industry peers.
HESM has a better Return On Invested Capital (18.03%) than 82.63% of its industry peers.
HESM had an Average Return On Invested Capital over the past 3 years of 17.86%. This is significantly below the industry average of 48.71%.
The 3 year average ROIC (17.86%) for HESM is below the current ROIC(18.03%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.13%
ROE 34.86%
ROIC 18.03%
ROA(3y)2.27%
ROA(5y)1.91%
ROE(3y)30.61%
ROE(5y)32.35%
ROIC(3y)17.86%
ROIC(5y)15.44%

1.3 Margins

Looking at the Profit Margin, with a value of 8.79%, HESM is doing worse than 62.44% of the companies in the same industry.
In the last couple of years the Profit Margin of HESM has declined.
HESM's Operating Margin of 60.57% is amongst the best of the industry. HESM outperforms 91.08% of its industry peers.
In the last couple of years the Operating Margin of HESM has grown nicely.
Industry RankSector Rank
OM 60.57%
PM (TTM) 8.79%
GM N/A
OM growth 3Y4.69%
OM growth 5Y2.68%
PM growth 3Y58.75%
PM growth 5Y-1.93%
GM growth 3YN/A
GM growth 5YN/A

2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HESM is creating value.
Compared to 1 year ago, HESM has less shares outstanding
Compared to 5 years ago, HESM has more shares outstanding
The debt/assets ratio for HESM is higher compared to a year ago.

2.2 Solvency

HESM has a debt to FCF ratio of 5.00. This is a neutral value as HESM would need 5.00 years to pay back of all of its debts.
HESM has a Debt to FCF ratio (5.00) which is in line with its industry peers.
HESM has a Debt/Equity ratio of 9.40. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of HESM (9.40) is worse than 95.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.4
Debt/FCF 5
Altman-Z N/A
ROIC/WACC2.38
WACC7.56%

2.3 Liquidity

HESM has a Current Ratio of 0.65. 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 0.65, HESM is doing worse than 84.51% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that HESM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.65, HESM is doing worse than 79.81% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.65

5

3. Growth

3.1 Past

HESM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.98%.
HESM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.48% yearly.
Looking at the last year, HESM shows a small growth in Revenue. The Revenue has grown by 5.76% in the last year.
The Revenue has been growing by 13.60% on average over the past years. This is quite good.
EPS 1Y (TTM)3.98%
EPS 3Y16.85%
EPS 5Y10.48%
EPS growth Q2Q12.24%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y7.29%
Revenue growth 5Y13.6%
Revenue growth Q2Q13.32%

3.2 Future

The Earnings Per Share is expected to grow by 10.72% on average over the next years. This is quite good.
HESM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.54% yearly.
EPS Next Y33.52%
EPS Next 2Y23.81%
EPS Next 3Y22.69%
EPS Next 5Y10.72%
Revenue Next Year11.3%
Revenue Next 2Y11.22%
Revenue Next 3Y9.54%
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 stable.
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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.29, the valuation of HESM can be described as rather expensive.
Based on the Price/Earnings ratio, HESM is valued a bit more expensive than 68.54% of the companies in the same industry.
HESM is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.95, the valuation of HESM can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as HESM.
The average S&P500 Price/Forward Earnings ratio is at 22.79. HESM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.29
Fwd PE 12.95

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HESM indicates a slightly more expensive valuation: HESM is more expensive than 72.30% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HESM.
Industry RankSector Rank
P/FCF 13.36
EV/EBITDA 11.62

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.
HESM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HESM's earnings are expected to grow with 22.69% in the coming years.
PEG (NY)0.52
PEG (5Y)1.65
EPS Next 2Y23.81%
EPS Next 3Y22.69%

5

5. Dividend

5.1 Amount

HESM has a Yearly Dividend Yield of 7.08%, which is a nice return.
HESM's Dividend Yield is a higher than the industry average which is at 5.82.
Compared to an average S&P500 Dividend Yield of 2.34, HESM pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.08%

5.2 History

The dividend of HESM decreases each year by -16.62%.
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)-16.62%
Div Incr Years6
Div Non Decr Years6

5.3 Sustainability

107.50% of the earnings are spent on dividend by HESM. This is not a sustainable payout ratio.
DP107.5%
EPS Next 2Y23.81%
EPS Next 3Y22.69%

HESS MIDSTREAM LP - CLASS A

NYSE:HESM (3/28/2024, 8:15:14 PM)

After market: 36.13 0 (0%)

36.13

+0.3 (+0.84%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.59B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 7.08%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 17.29
Fwd PE 12.95
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)1.65
Profitability
Industry RankSector Rank
ROA 3.13%
ROE 34.86%
ROCE
ROIC
ROICexc
ROICexgc
OM 60.57%
PM (TTM) 8.79%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 9.4
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.65
Quick Ratio 0.65
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.98%
EPS 3Y16.85%
EPS 5Y
EPS growth Q2Q
EPS Next Y33.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.76%
Revenue growth 3Y7.29%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y