Hess Midstream LP owns, develops, operates, and acquires midstream assets. More Details
Good value with mediocre balance sheet.
Share Price & News
How has Hess Midstream's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HESM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HESM's weekly volatility (5%) has been stable over the past year.
7 Day Return
US Oil and Gas
1 Year Return
US Oil and Gas
Return vs Industry: HESM underperformed the US Oil and Gas industry which returned 41.6% over the past year.
Return vs Market: HESM exceeded the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Hess Midstream's share price compared to the market and industry in the last 5 years?
Simply Wall St News
19 hours ago | Simply Wall StHess Midstream LP (NYSE:HESM) Will Pay A US$0.50 Dividend In Three Days
2 days ago | Simply Wall StHess Midstream (NYSE:HESM) Is Increasing Its Dividend To US$0.50
4 days ago | Simply Wall StCan You Imagine How Hess Midstream's (NYSE:HESM) Shareholders Feel About The 45% Share Price Increase?
Is Hess Midstream undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HESM ($25.72) is trading below our estimate of fair value ($37.29)
Significantly Below Fair Value: HESM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HESM is good value based on its PE Ratio (16.3x) compared to the US Oil and Gas industry average (18.7x).
PE vs Market: HESM is good value based on its PE Ratio (16.3x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: HESM is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: HESM is overvalued based on its PB Ratio (3.5x) compared to the US Oil and Gas industry average (1.7x).
How is Hess Midstream forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HESM's forecast earnings growth (9.5% per year) is above the savings rate (2%).
Earnings vs Market: HESM's earnings (9.5% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: HESM's earnings are forecast to grow, but not significantly.
Revenue vs Market: HESM's revenue (3.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: HESM's revenue (3.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HESM's Return on Equity is forecast to be low in 3 years time (12.9%).
How has Hess Midstream performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HESM has high quality earnings.
Growing Profit Margin: HESM's current net profit margins (2.9%) are lower than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: HESM's earnings have declined by 39.1% per year over the past 5 years.
Accelerating Growth: HESM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HESM had negative earnings growth (-30%) over the past year, making it difficult to compare to the Oil and Gas industry average (-38.4%).
Return on Equity
High ROE: Whilst HESM's Return on Equity (41.13%) is outstanding, this metric is skewed due to their high level of debt.
How is Hess Midstream's financial position?
Financial Position Analysis
Short Term Liabilities: HESM's short term assets ($113.8M) exceed its short term liabilities ($94.3M).
Long Term Liabilities: HESM's short term assets ($113.8M) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: HESM's debt to equity ratio (137%) is considered high.
Reducing Debt: Insufficient data to determine if HESM's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HESM's debt is well covered by operating cash flow (35.1%).
Interest Coverage: HESM's interest payments on its debt are well covered by EBIT (7.1x coverage).
What is Hess Midstream current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HESM's dividend (7.84%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: HESM's dividend (7.84%) is in the top 25% of dividend payers in the US market (3.55%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HESM has been paying a dividend for less than 10 years.
Growing Dividend: HESM's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (116.7%), HESM's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HESM's dividends in 3 years are not forecast to be well covered by earnings (99.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Hess (67 yo)
Mr. John B. Hess has been the Chief Executive Officer at Hess Corporation since May 3, 1995. Mr. Hess has been the Chairman of the Board of Directors and Chief Executive Officer of Hess Midstream GP LLC, t...
Experienced Management: HESM's management team is seasoned and experienced (7.1 years average tenure).
Experienced Board: HESM's board of directors are considered experienced (4.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HESM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hess Midstream LP's company bio, employee growth, exchange listings and data sources
- Name: Hess Midstream LP
- Ticker: HESM
- Exchange: NYSE
- Founded: 2014
- Industry: Oil and Gas Storage and Transportation
- Sector: Energy
- Implied Market Cap: US$7.319b
- Market Cap: US$643.988m
- Shares outstanding: 284.56m
- Website: https://www.hessmidstream.com
- Hess Midstream LP
- 1501 McKinney Street
- United States
Hess Midstream LP owns, develops, operates, and acquires midstream assets. The company operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/03 00:45|
|End of Day Share Price||2021/08/02 00:00|
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.