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ETRN

Equitrans MidstreamNYSE:ETRN Stock Report

Last Price

US$8.26

Market Cap

US$3.6b

7D

-23.6%

1Y

27.5%

Updated

27 Jan, 2022

Data

Company Financials +
ETRN fundamental analysis
Snowflake Score
Valuation6/6
Future Growth3/6
Past Performance3/6
Financial Health1/6
Dividends3/6

ETRN Stock Overview

Equitrans Midstream Corporation owns, operates, acquires, and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin.

Equitrans Midstream Competitors

Enterprise Products Partners

NYSE:EPD

US$53.4b

Kinder Morgan

NYSE:KMI

US$39.7b

Williams Companies

NYSE:WMB

US$35.5b

MPLX

NYSE:MPLX

US$32.5b

Price History & Performance

Summary of all time highs, changes and price drops for Equitrans Midstream
Historical stock prices
Current Share PriceUS$8.26
52 Week HighUS$11.52
52 Week LowUS$6.23
Beta2.06
1 Month Change-20.42%
3 Month Change-23.23%
1 Year Change27.47%
3 Year Change-60.23%
5 Year Changen/a
Change since IPO-57.64%

Recent News & Updates

Dec 01
Does Equitrans Midstream (NYSE:ETRN) Have A Healthy Balance Sheet?

Does Equitrans Midstream (NYSE:ETRN) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Oct 04

Equitrans Midstream: There's More To Win Than To Lose, 50%+ Upside

Equitrans Midstream stands out for still offering significant growth prospects on the horizon in an industry that has largely axed capital expenditure. When their trio of growth projects become operational in the coming two years, it stands to boost their adjusted EBITDA by upwards of 30%. This should also boost their free cash flow significantly and thus allow their dividends to at least be doubled. Based upon my Monte Carlo Simulations, investors only face a 16% downside even in a bearish scenario with zero growth but see over a 50% upside in a bullish scenario where their dividends double. Since this means that there is more to win than to lose with favorably skewed results, I continue believing that my bullish rating is appropriate.

Shareholder Returns

ETRNUS Oil and GasUS Market
7D-23.6%-0.3%-5.1%
1Y27.5%55.4%3.3%

Return vs Industry: ETRN underperformed the US Oil and Gas industry which returned 55.4% over the past year.

Return vs Market: ETRN exceeded the US Market which returned 3.3% over the past year.

Price Volatility

Is ETRN's price volatile compared to industry and market?
ETRN volatility
ETRN Average Weekly Movement6.8%
Oil and Gas Industry Average Movement7.3%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: ETRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ETRN's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2018771Tom Karamhttps://www.equitransmidstream.com

Equitrans Midstream Corporation owns, operates, acquires, and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin. It operates through three segments: Gathering System, Transmission and Storage System, and Water Service System. The Gathering System segment include 1,130 miles of high-pressure gathering lines with compression of approximately 485,000 horsepower and multiple interconnect points; and approximately 910 miles of Federal Energy Regulatory Commission (FERC) low-pressure gathering lines.

Equitrans Midstream Fundamentals Summary

How do Equitrans Midstream's earnings and revenue compare to its market cap?
ETRN fundamental statistics
Market CapUS$3.57b
Earnings (TTM)US$271.07m
Revenue (TTM)US$1.44b

13.2x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETRN income statement (TTM)
RevenueUS$1.44b
Cost of RevenueUS$151.12m
Gross ProfitUS$1.29b
ExpensesUS$1.02b
EarningsUS$271.07m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.63
Gross Margin89.49%
Net Profit Margin18.86%
Debt/Equity Ratio163.0%

How did ETRN perform over the long term?

See historical performance and comparison

Dividends

7.3%

Current Dividend Yield

96%

Payout Ratio

Valuation

Is Equitrans Midstream undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETRN ($8.26) is trading below our estimate of fair value ($24.01)

Significantly Below Fair Value: ETRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ETRN is good value based on its PE Ratio (13.2x) compared to the US Oil and Gas industry average (17.9x).

PE vs Market: ETRN is good value based on its PE Ratio (13.2x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: ETRN is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ETRN is good value based on its PB Ratio (1.1x) compared to the US Oil and Gas industry average (2.1x).


Future Growth

How is Equitrans Midstream forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETRN's forecast earnings growth (31.1% per year) is above the savings rate (2%).

Earnings vs Market: ETRN's earnings (31.1% per year) are forecast to grow faster than the US market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ETRN's revenue (5.7% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: ETRN's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETRN's Return on Equity is forecast to be low in 3 years time (14.8%).


Past Performance

How has Equitrans Midstream performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETRN has high quality earnings.

Growing Profit Margin: ETRN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ETRN's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: ETRN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ETRN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).


Return on Equity

High ROE: ETRN's Return on Equity (7.9%) is considered low.


Financial Health

How is Equitrans Midstream's financial position?


Financial Position Analysis

Short Term Liabilities: ETRN's short term assets ($485.8M) exceed its short term liabilities ($318.2M).

Long Term Liabilities: ETRN's short term assets ($485.8M) do not cover its long term liabilities ($8.2B).


Debt to Equity History and Analysis

Debt Level: ETRN's net debt to equity ratio (158.6%) is considered high.

Reducing Debt: Insufficient data to determine if ETRN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ETRN's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: ETRN's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is Equitrans Midstream current dividend yield, its reliability and sustainability?

7.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ETRN's dividend (7.26%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: ETRN's dividend (7.26%) is in the top 25% of dividend payers in the US market (3.56%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ETRN has been paying a dividend for less than 10 years.

Growing Dividend: ETRN has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.8%), ETRN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ETRN's dividends in 3 years are forecast to be well covered by earnings (30.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Tom Karam (62 yo)

3.33yrs

Tenure

US$4,662,694

Compensation

Mr. Thomas F. Karam, also known as Tom, serves as Chief Executive Officer of EQM Midstream Services, LLC since August 8, 2020. Mr. Karam is Senior Vice President, Chief Executive Officer and President of M...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD4.66M) is about average for companies of similar size in the US market ($USD5.25M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: ETRN's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ETRN's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Equitrans Midstream Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Equitrans Midstream Corporation
  • Ticker: ETRN
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$3.572b
  • Shares outstanding: 432.50m
  • Website: https://www.equitransmidstream.com

Number of Employees


Location

  • Equitrans Midstream Corporation
  • 2200 Energy Drive
  • Canonsburg
  • Pennsylvania
  • 15317-0269
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/27 00:13
End of Day Share Price2022/01/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.