HESM Stock Analysis: Hess Midstream | NYSE
Oil & Gas Midstream | NYSE, USA | Market Cap: 6.177m USD | 12M Return: 0.2% | US4281031058 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 82.3M
EPS Trend: 97.3%
Qual. Beats: 2
Rev. Trend: 94.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 9.6 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Hess Midstream LP (NYSE: HESM) is a Houston-based midstream energy company founded in 2014 that acquires, owns, operates, and develops midstream assets providing fee-based services primarily to its sponsor (Hess Corporation), its subsidiaries, and third-party customers across the United States. The company was formerly known as Hess Midstream Partners LP before renaming in December 2019.
The business is organized into three reportable segments. The Gathering segment owns natural gas gathering and compression systems, crude oil gathering systems, and produced water gathering and disposal facilities, including approximately 1,430 miles of natural gas and NGL gathering pipelines with capacity of roughly 685 million cubic feet per day, approximately 615 miles of crude oil gathering pipelines, and approximately 360 miles of produced water pipelines. The Processing and Storage segment includes the Tioga Gas Plant, a natural gas processing and fractionation plant in North Dakota, and the Mentor Storage Terminal, a propane storage cavern with rail and truck loading facilities in Minnesota. The Terminaling and Export segment comprises the Ramberg terminal facility, the Tioga rail terminal, crude oil rail cars, Dakota Access Pipeline (DAPL) connections, and the Johnsons Corner Header System.
As a midstream operator, Hess Midstream earns revenue primarily through fee-based contracts for gathering, processing, storage, and terminaling services, a structure that typically insulates cash flows from direct commodity price volatility. The companys assets are largely concentrated in the Bakken shale region of North Dakota, where it supports the production activities of its sponsor and other producers operating in the basin.
- Hess Corporation drilling pace drives gathering segment volumes
- Dakota Access Pipeline regulatory rulings impact terminaling revenue
- Fee-based contracts and distribution growth support valuation
| Net Income: 376.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.18 > 0.02 and ΔFCF/TA 1.98 > 1.0 |
| NWC/Revenue: -32.49% < 20% (prev -3.49%; Δ -29.00% < -1%) |
| CFO/TA 0.25 > 3% & CFO 1.05b > Net Income 376.7m |
| Net Debt (4.26b) to EBITDA (1.23b): 3.46 < 3 |
| Current Ratio: 0.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (128.4m) vs 12m ago -1.46% < -2% |
| Gross Margin: 75.35% > 18% (prev 86.87%; Δ -11.53% > 0.5%) |
| Asset Turnover: 37.07% > 50% (prev 36.26%; Δ 0.81% > 0%) |
| Interest Coverage Ratio: 4.58 > 6 (EBIT TTM 1.01b / Interest Expense TTM 220.2m) |
| DSRI: 1.10 (Receivables 164.4m/150.5m, Revenue 1.60b/1.61b) |
| GMI: 1.15 (GM 86.87% / 75.35%) |
| AQI: 0.90 (AQ_t 0.18 / AQ_t-1 0.20) |
| SGI: 0.99 (Revenue 1.60b / 1.61b) |
| TATA: -0.16 (NI 376.7m - CFO 1.05b) / TA 4.20b) |
| Beneish M = -2.88 (Cap -4..+1) = A |
As of November 13, 2026, the stock is trading at USD 30.58 with a total of 1,614,692 shares traded. Over the past week, the price has changed by +0.92%, over one month by -3.10%, over three months by -21.74% and over the past year by +0.21%.
Current recommended Stop Loss: 28.80 (which is 5.8% or 1.8 ATR below the current price).
Hess Midstream has received a consensus analysts rating of 2.43. Therefore, it is recommended to sell HESM.
- StrongBuy: 0
- Buy: 1
- Hold: 3
- Sell: 1
- StrongSell: 2
| Analysts Target Price | 33.4 | 9.3% |
P/E Trailing = 10.2603
P/E Forward = 9.9108
P/S = 3.8525
P/B = 7.4988
P/EG = 1.57
Revenue TTM = 1.60b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.23b USD
Long Term Debt = 3.74b USD (from longTermDebt, last fiscal year)
Short Term Debt = 519.2m USD (from shortTermDebt, last quarter)
Debt = 4.26b USD (corrected: LT Debt 3.74b + ST Debt 519.2m)
Net Debt = 4.26b USD (calculated: Debt 4.26b - CCE 1.00m)
Enterprise Value = 10.4b USD (6.18b + Debt 4.26b - CCE 1.00m)
Interest Coverage Ratio = 4.58 (Ebit TTM 1.01b / Interest Expense TTM 220.2m)
EV/FCF = 13.77x (Enterprise Value 10.4b / FCF TTM 757.7m)
FCF Yield = 7.26% (FCF TTM 757.7m / Enterprise Value 10.4b)
FCF Margin = 47.33% (FCF TTM 757.7m / Revenue TTM 1.60b)
Net Margin = 23.53% (Net Income TTM 376.7m / Revenue TTM 1.60b)
Gross Margin = 75.35% ((Revenue TTM 1.60b - Cost of Revenue TTM 394.7m) / Revenue TTM)
Gross Margin QoQ = 65.45% (prev 64.84%)
Tobins Q-Ratio = 2.48 (Enterprise Value 10.4b / Total Assets 4.20b)
Interest Expense / Debt = 5.17% (Interest Expense 220.2m / Debt 4.26b)
Taxrate = 15.20% (121.6m / 800.1m)
NOPAT = 854.9m (EBIT 1.01b * (1 - 15.20%))
Current Ratio = 0.25 (Total Current Assets 170.1m / Total Current Liabilities 690.2m)
Debt / Equity = 8.30 (Debt 4.26b / totalStockholderEquity, last quarter 512.8m)
Debt / EBITDA = 3.46 (Net Debt 4.26b / EBITDA 1.23b)
Debt / FCF = 5.62 (Net Debt 4.26b / FCF TTM 757.7m)
Total Stockholder Equity = 528.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.72% (Net Income 376.7m / Total Assets 4.20b)
RoE = 71.29% (Net Income TTM 376.7m / Total Stockholder Equity 528.4m)
RoCE = 23.62% (EBIT 1.01b / Capital Employed (Equity 528.4m + L.T.Debt 3.74b))
RoIC = 21.22% (NOPAT 854.9m / Invested Capital 4.03b)
WACC = 5.80% (E(6.18b)/V(10.4b) * Re(6.78%) + D(4.26b)/V(10.4b) * Rd(5.17%) * (1-Tc(0.15)))
Discount Rate = 6.78% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 89.99 | Cagr: 20.88%
[DCF] Terminal Value 76.24% ; FCFF base≈739.7m ; Y1≈781.6m ; Y5≈916.9m
[DCF] Fair Price = 76.78 (EV 14.1b - Net Debt 4.26b = Equity 9.85b / Shares 128.4m; r=8.35% [WACC [floored]]; 5y FCF grow 6.31% → 2.50% )
EPS Correlation: 97.33 | EPS CAGR: 13.59% | SUE: 1.93 | # QB: 2
Revenue Correlation: 94.46 | Revenue CAGR: 6.88% | SUE: 0.75 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.60 | Chg30d=-9.06% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=2.93 | Chg30d=+3.43% | Revisions=+17% | GrowthEPS=+2.4% | GrowthRev=-1.3%
EPS next Year (2027-12-31): EPS=2.71 | Chg30d=-8.34% | Revisions=-17% | GrowthEPS=-7.4% | GrowthRev=-19.2%
[Analyst] Revisions Ratio: -10% (up=3, down=4)