Hess Midstream LP (HESM) stock analysis
Close on Nov 12, 2026Market cap $3.92BP/E –Yield –
StockData Score
Prices as of Nov 12, 2026How the score works
Weak8 of 30 checks passed
Hess Midstream LP passes 8 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 0/6
- Past performance
- 3/6
- Financial health
- 1/6
- Dividend
- 3/6
What stands out
Trading below fair value
The share price of $30.58 is below our fair value estimate of $30.76.
Earnings grew over 5 years
Net income grew 71.2% a year on average over the last five fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 29.0% of total debt.
Net margin above its 5-year average
Net margin was 23.5% over the last twelve months, against a 5-year average of 11.2%.
What to watch
Margin of safety under 20%
The price is 0.6% below fair value, less than the 20% cushion we look for.
Revenue growing under 10% a year
Revenue grew 8.3% a year over the last three fiscal years, short of the 10% we look for.
Earnings growth not accelerating
Net income grew 14.2% over the last twelve months, against a 5-year average of 71.2% a year.
Elevated bankruptcy risk
The Altman Z-score is 1.64; above 3 is the safe zone and below 1.8 the distress zone.
Valuation1/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/S above the industry
Hess Midstream LP's price-to-sales of 2.45 is above the Crude Petroleum and Natural Gas median of 1.70 (book value is negative, so we use sales).
Trading below fair value
The share price of $30.58 is below our fair value estimate of $30.76.
Margin of safety under 20%
The price is 0.6% below fair value, less than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew 8.3% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings growth not accelerating
Net income grew 14.2% over the last twelve months, against a 5-year average of 71.2% a year.
Growing slower than the industry
Revenue grew -0.6% over the last twelve months; the Crude Petroleum and Natural Gas median is 8.9%.
Guidance lowered
Hess Midstream LP lowered its full year 2026 Crude terminals - MBbl of crude oil per day outlook on Oct 30, 2026.
Gross margin trend
This company does not report gross profit.
Past performance3/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity against the industry
Needs positive equity.
Earnings grew over 5 years
Net income grew 71.2% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 23.5% over the last twelve months, against a 5-year average of 11.2%.
Net margin above the industry
Hess Midstream LP's net margin of 23.5% is above the Crude Petroleum and Natural Gas median of 4.5%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 29.0% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets don't cover short-term debts
Current assets are 0.25 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.64; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Hess Midstream LP paid dividends worth 7.6% of the share price over the last twelve months.
Yield above Treasuries
The 7.6% yield is above the 4.6% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.9% or more; Hess Midstream LP yields 7.6%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$30.76
The share price is 1% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| EV/EBITDA | 5.5× | – | 5.5× | $15.37 | 70% |
| Earnings power | 7.8% cost of equity | – | – | $66.66 | 30% |
| Fair value | $30.76 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $96.81M
- Value traded per 1% price move
- $53.67M
Downside
Medium risk
- Typical loss in a bad month
- 21.5%
- Volatility (annualized)
- 27%
- Sharpe ratio, 1 year
- -0.54
- Beta to the S&P 500 (5Y)
- 0.57
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2017 to 2025
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.4% | +8.3% | +8.2% | – | |
| Operating income | +9.7% | +8.4% | +11.8% | – | |
| Net income | +58.2% | +61.4% | +71.2% | – | |
| Free cash flow | +14.8% | +5.3% | +16.4% | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on assets | – | 0.7% | 8.3% | |
| Current ratio | – | 0.81 | 0.85 | |
| Capex to revenue | 24.9% | 27.6% | 15.8% |
Where the cash went
Fiscal 2021 to 2025, five years combined
Hess Midstream LP generated $4.45B from operations and spent $3.44B on capital expenditure, dividends and share buybacks. 35% of that went back into the business.
DuPont needs revenue, assets and equity
This company does not report all three for consecutive years.
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$352.90M
- Cash generatingOperating cash flow above zero$983.80M
- Return on assets improvedROA up on the prior year5.9% → 8.5%
- Earnings backed by cashOperating cash flow above net income$983.80M vs $352.90M
- Less leverageLong-term debt to assets fell83.1% → 85.2%
- Better liquidityCurrent ratio rose0.68 → 0.85
- No dilutionShare count did not rise– → –
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.39 → 0.39
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