Hess Midstream LP Class A Share
Find Ratings ReportsHESS MIDSTREAM LP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. HESS MIDSTREAM LP has weak liquidity. Currently, the Quick Ratio is 0.62 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.80% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 356.5 | 314.6 |
EBITDA ($mil) | 260.5 | 242.8 |
EBIT ($mil) | 210.1 | 196.4 |
Net Income ($mil) | 37.5 | 21.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 5.4 | 3.1 |
Total Assets ($mil) | 3789.5 | 3588.2 |
Total Debt ($mil) | 3211.4 | 2885.6 |
Equity ($mil) | 340.2 | 245.1 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 75.32 | 79.12 |
EBITDA Margin | 73.07 | 77.17 |
Operating Margin | 58.93 | 62.43 |
Sales Turnover | 0.36 | 0.36 |
Return on Assets | 3.12 | 2.33 |
Return on Equity | 34.86 | 34.23 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.65 | 0.83 |
Debt/Capital | 0.9 | 0.92 |
Interest Expense | 47.8 | 40.7 |
Interest Coverage | 4.4 | 4.83 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 68.37 | 44.0 |
Div / share | 0.62 | 0.56 |
EPS | 0.55 | 0.49 |
Book value / share | 4.98 | 5.57 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 887655.0 | 977380.0 |
BUY. The current P/E ratio indicates a premium compared to an average of 13.78 for the Oil and Gas Extraction subsector and a significant discount compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 7.09 indicates a significant premium versus the S&P 500 average of 4.68 and a significant premium versus the subsector average of 2.46. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, HESS MIDSTREAM LP proves to trade at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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HESM 16.89 | Peers 13.78 | HESM 2.79 | Peers 5.77 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. HESM is trading at a premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. HESM is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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HESM 11.20 | Peers 11.29 | HESM 0.60 | Peers 8.64 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. HESM is trading at a premium to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. HESM trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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HESM 7.09 | Peers 2.46 | HESM 3.98 | Peers 5.25 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. HESM is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, HESM is expected to trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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HESM 1.79 | Peers 2.48 | HESM 5.75 | Peers -8.61 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. HESM is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. HESM has a sales growth rate that significantly exceeds its peers. |
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