Hess Midstream LP (HESM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kosmos Energy Ltd.

Matador Resources Co.

Permian Resources Corp.

Chord Energy Corp.

California Resources Corp.

National Fuel Gas Co.

CNX Resources Corp.

Hess Midstream LP

Southwestern Energy Co.

Earthstone Energy, Inc.

Denbury, Inc.

Why is Hess Midstream LP ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 962.7 MM
ROCE(HY) Highest at 52.91%
DEBT-EQUITY RATIO (HY) Lowest at 584.24 %

With ROCE of 22.42%, it has a very attractive valuation with a 2.82 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.25%, its profits have risen by 5%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.25% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hess Midstream LP for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hess Midstream LP

-2.97%

-0.05

28.90%

S&P 500

22.36%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.23%

EBIT Growth (5y)

11.83%

EBIT to Interest (avg)

5.39

Debt to EBITDA (avg)

2.94

Net Debt to Equity (avg)

5.93

Sales to Capital Employed (avg)

0.37

Tax Ratio

10.89%

Dividend Payout Ratio

101.26%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

25.12%

ROE (avg)

222.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

14.54

EV to EBIT

11.94

EV to EBITDA

9.85

EV to Capital Employed

2.77

EV to Sales

7.42

PEG Ratio

Dividend Yield

ROCE (Latest)

23.24%

ROE (Latest)

120.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 0

RAW MATERIAL COST(Y)

Fallen by 0.09% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 77.02 %

EPS(Q)

Highest at USD 0.75

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 757.8 MM

ROCE(HY)

Lowest at 0%

CASH AND EQV(HY)

Lowest at USD 4.6 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

Here's what is working for Hess Midstream LP

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 77.02 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at USD 0.75

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by 0.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hess Midstream LP

Operating Cash Flow

Lowest at USD 757.8 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 4.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income