Equitrans Midstream Intrinsic Value – Equitrans Midstream: A Puzzling yet Intriguing Investment Opportunity with Hold Consensus Rating
August 11, 2023
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Equitrans Midstream ($NYSE:ETRN) Co. has recently become an intriguing investment opportunity, as ten research firms have reported a consensus rating of “Hold” on Bloomberg.com. Equitrans Midstream is a company that provides energy infrastructure services to customers in the Appalachian Basin and other US regions. Its services include natural gas gathering, compression, treating, processing, and transportation; natural gas liquids (NGL) gathering, fractionation, and transportation; and crude oil gathering and transportation. The company also operates interstate and intrastate pipelines.
The puzzling aspect of this investment opportunity comes from the fact that the consensus rating of ‘Hold’ on Equitrans Midstream Co. is not reflective of the company’s strong financials, operational performance, and strategic investments in the energy infrastructure sector. All these factors make the ‘Hold’ rating from research firms difficult to understand. Despite the consensus rating of ‘Hold’, the company’s strong financials, operational performance, and strategic investments in the energy infrastructure sector make it an attractive option for investors who are looking for a long-term investment opportunity.
Share Price
Equitrans Midstream (ETRN) has been a puzzling yet intriguing investment opportunity for investors, with a Hold consensus rating. On Monday, the stock opened at $9.8 and closed at $10.0, up 2.7% from its prior closing price of 9.7. This marks a positive sign for investors, as the stock has been on a steady rise since the start of the year.
Moreover, analysts have highlighted the company’s strong fundamentals, which include healthy balance sheets and promising earnings outlooks. Despite some near-term headwinds, Equitrans Midstream remains an attractive investment opportunity with a solid long-term growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Equitrans Midstream. More…
| Total Revenues | Net Income | Net Margin |
| 1.38k | -314.84 | 22.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Equitrans Midstream. More…
| Operations | Investing | Financing |
| 832.08 | -534.46 | -305.06 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Equitrans Midstream. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.73k | 8.63k | 3.77 |
Key Ratios Snapshot
Some of the financial key ratios for Equitrans Midstream are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -5.3% | -12.1% | 11.9% |
| FCF Margin | ROE | ROA |
| 32.3% | 6.3% | 1.0% |
Analysis – Equitrans Midstream Intrinsic Value
At GoodWhale, we have conducted an analysis of EQUITRANS MIDSTREAM‘s financials. Our proprietary Valuation Line has determined the intrinsic value of a share of this company to be around $8.2. Unfortunately, the stock is currently trading at $10.0, which represents an overvaluation of 21.4% compared to the intrinsic value of the company. This suggests that now may not be the most ideal time to invest in EQUITRANS MIDSTREAM. More…
Peers
The competition between Equitrans Midstream Corp and its competitors is fierce. Williams Companies Inc, EQT Corp, and Antero Midstream Corp are all major players in the industry, and each company is striving to be the best.
– Williams Companies Inc ($NYSE:WMB)
The Williams Companies, Inc. is an American energy company that engages in natural gas processing and transportation, as well as gathering and storing natural gas. The company operates through three segments: Williams Partners, Williams NGL, and Other. The Williams Partners segment provides natural gas transportation services to customers in the United States. The Williams NGL segment engages in the transportation, storage, fractionation, and marketing of natural gas liquids. The Other segment includes the company’s equity investments, and other activities. The Williams Companies was founded in 1908 and is headquartered in Tulsa, Oklahoma.
– EQT Corp ($NYSE:EQT)
EQT Corporation is a publicly traded natural gas company with a market capitalization of $13.99 billion as of 2022. The company has a return on equity of -5.33%. EQT Corporation is engaged in the exploration, development, and production of natural gas and oil in the United States. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania.
– Antero Midstream Corp ($NYSE:AM)
Antero Midstream Corporation is a publicly traded company with a market capitalization of $4.93 billion as of March 2022. The company focuses on the development and operation of midstream energy infrastructure assets in the Appalachian Basin. The company’s assets include natural gas gathering, natural gas processing, water handling and treatment, and crude oil gathering and logistics. Antero Midstream’s return on equity was 17.29% as of March 2022.
Summary
Equitrans Midstream Co. is an investment opportunity that has been given a “Hold” rating by 10 leading research firms. This suggests that the market is unsure if the company would be a profitable investment. Analysts recommend caution in investing in this company as there are likely to be risks involved.
They advise potential investors to closely analyze the company’s financials, business model, and competitive landscape before making any decision. A thorough assessment of the company’s prospects, risks, and expected returns should be done prior to investment.
