HESM
Hess Midstream·NYSE
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1.97 / 10
Underperform
Financial analysis of Hess Midstream shows a weak fundamental score of 2.0/10, primarily due to subpar asset-to-market and cash-to-market ratios, despite decent revenue and net income relative to market value. The equity multiplier is elevated at 7.75, indicating higher leverage risk, and long-term debt to working capital stands at 27.19%, suggesting potential financial strain. Management expects lower capital spending in 2026, which could improve free cash flow, but current fundamentals remain a concern.
Analysis Checks(4/10)
Revenue-MV
Value0.16
Score2/3
Weight15.80%
1M Return3.29%
Value0.16
Score2/3
Weight15.80%
1M Return3.29%
Equity multiplier
Value7.75
Score1/3
Weight10.49%
1M Return2.22%
Value7.75
Score1/3
Weight10.49%
1M Return2.22%
Net income-Revenue
Value1.13
Score2/3
Weight18.19%
1M Return3.02%
Value1.13
Score2/3
Weight18.19%
1M Return3.02%
Net cash flow from operating activities / Total liabilities (%)
Value0.18
Score1/3
Weight11.45%
1M Return2.40%
Value0.18
Score1/3
Weight11.45%
1M Return2.40%
Asset-MV
Value-0.50
Score0/3
Weight4.89%
1M Return1.08%
Value-0.50
Score0/3
Weight4.89%
1M Return1.08%
Net profit attributable to parent company shareholders / Net profit (%)
Value50.25
Score1/3
Weight13.09%
1M Return2.60%
Value50.25
Score1/3
Weight13.09%
1M Return2.60%
Profit-MV
Value0.09
Score0/3
Weight1.67%
1M Return0.36%
Value0.09
Score0/3
Weight1.67%
1M Return0.36%
PB-ROE
Value1.41
Score2/3
Weight10.32%
1M Return2.24%
Value1.41
Score2/3
Weight10.32%
1M Return2.24%
Long-term debt to working capital ratio (%)
Value27.19
Score2/3
Weight13.42%
1M Return2.66%
Value27.19
Score2/3
Weight13.42%
1M Return2.66%
Cash-MV
Value0.14
Score0/3
Weight0.68%
1M Return0.17%
Value0.14
Score0/3
Weight0.68%
1M Return0.17%
Revenue-MV
Value0.16
Score2/3
Weight15.80%
1M Return3.29%
Value0.16
Score2/3
Weight15.80%
1M Return3.29%
Net profit attributable to parent company shareholders / Net profit (%)
Value50.25
Score1/3
Weight13.09%
1M Return2.60%
Value50.25
Score1/3
Weight13.09%
1M Return2.60%
Equity multiplier
Value7.75
Score1/3
Weight10.49%
1M Return2.22%
Value7.75
Score1/3
Weight10.49%
1M Return2.22%
Profit-MV
Value0.09
Score0/3
Weight1.67%
1M Return0.36%
Value0.09
Score0/3
Weight1.67%
1M Return0.36%
Net income-Revenue
Value1.13
Score2/3
Weight18.19%
1M Return3.02%
Value1.13
Score2/3
Weight18.19%
1M Return3.02%
PB-ROE
Value1.41
Score2/3
Weight10.32%
1M Return2.24%
Value1.41
Score2/3
Weight10.32%
1M Return2.24%
Net cash flow from operating activities / Total liabilities (%)
Value0.18
Score1/3
Weight11.45%
1M Return2.40%
Value0.18
Score1/3
Weight11.45%
1M Return2.40%
Long-term debt to working capital ratio (%)
Value27.19
Score2/3
Weight13.42%
1M Return2.66%
Value27.19
Score2/3
Weight13.42%
1M Return2.66%
Asset-MV
Value-0.50
Score0/3
Weight4.89%
1M Return1.08%
Value-0.50
Score0/3
Weight4.89%
1M Return1.08%
Cash-MV
Value0.14
Score0/3
Weight0.68%
1M Return0.17%
Value0.14
Score0/3
Weight0.68%
1M Return0.17%
Is HESM fundamentally strong?
- HESM scores 1.97/10 on fundamentals and holds a Premium valuation at present. Backed by its 58.22% ROE, 42.70% net margin, 22.49 P/E ratio, 17.40 P/B ratio, and 19.83% earnings growth, these metrics solidify its Underperform investment rating.
