NYSE:HESM

Stock Analysis Report

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Market Cap

US$7.4b

Last Updated

2021/08/01 22:11 UTC

Data Sources

Company Financials +

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.


Market Performance


7 Day Return

10.4%

HESM

0.9%

US Oil and Gas

-0.4%

US Market


1 Year Return

48.8%

HESM

41.6%

US Oil and Gas

35.9%

US Market

Return vs Industry: HESM exceeded the US Oil and Gas industry which returned 41.4% over the past year.

Return vs Market: HESM exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

HESMIndustryMarket
7 Day10.4%0.9%-0.4%
30 Day2.4%-9.6%-0.3%
90 Day16.0%-0.8%3.1%
1 Year62.9%48.8%50.3%41.6%38.0%35.9%
3 Year42.6%14.0%-19.5%-31.0%62.9%52.7%
5 Yearn/a-5.2%-24.0%121.3%96.9%

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

Valuation

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

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HESM ($25.88) is trading below our estimate of fair value ($37.5)

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 (16.4x) compared to the US Oil and Gas industry average (18.7x).

PE vs Market: HESM is good value based on its PE Ratio (16.4x) compared to the US market (18.1x).


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).


Future Growth

How is Hess Midstream forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

9.5%

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%).


Past Performance

How has Hess Midstream performed over the past 5 years?

-39.1%

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.


Financial Health

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).


Balance Sheet


Dividend

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

7.79%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 02 2021Ex Dividend DateAug 06 2021Dividend Pay DateAug 13 20217 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HESM's dividend (7.79%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: HESM's dividend (7.79%) 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).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

John Hess (67 yo)

7yrs

Tenure

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...


Leadership Team

Experienced Management: HESM's management team is seasoned and experienced (7 years average tenure).


Board Members

Experienced Board: HESM's board of directors are considered experienced (4.2 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

Hess Midstream LP's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hess Midstream LP
  • Ticker: HESM
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Implied Market Cap: US$7.364b
  • Market Cap: US$647.994m
  • Shares outstanding: 284.56m
  • Website: https://www.hessmidstream.com

Location

  • Hess Midstream LP
  • 1501 McKinney Street
  • Houston
  • Texas
  • 77010
  • United States

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 22:11
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
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.