HESM Intrinsic Value Calculation – Is Hess Midstream LP Stock a Good Value Investment this Friday?
October 28, 2023
☀️Trending News
The question of whether investing in Hess ($NYSE:HESM) Midstream LP stock is a profitable decision on Friday depends on a variety of factors. The company’s business model is focused on delivering safe, reliable, and economic midstream services to support Hess and third-party upstream production. In addition, Hess Midstream LP’s balance sheet is strong, with over $1.5 billion in total assets and low debt levels. Investors looking for steady returns may benefit from adding Hess Midstream LP to their portfolio in the near future.
Price History
Hess Midstream LP (HESM) stock is currently trading at $30.1, down 1.5% from its previous closing price of $30.5. With this in mind, it is natural to question if this Friday would be a good time to invest in HESM. On one hand, the stock has been on a downward trend recently and has dropped 1.5% since Monday when it opened at $30.6. This could suggest that the market has already priced in some of the potential risks associated with the company.
Ultimately, whether or not HESM is a good value investment this Friday will depend on how much risk an investor is willing to take and what their financial goals are. In order to make an informed decision, potential investors should research the company’s fundamentals and then weigh their options accordingly. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HESM. More…
| Total Revenues | Net Income | Net Margin |
| 1.28k | 90.8 | 7.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HESM. More…
| Operations | Investing | Financing |
| 869.2 | -238.2 | -622 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HESM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.58k | 3.14k | 4.01 |
Key Ratios Snapshot
Some of the financial key ratios for HESM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | 18.4% | 62.1% |
| FCF Margin | ROE | ROA |
| 48.6% | 217.9% | 13.9% |
Analysis – HESM Intrinsic Value Calculation
At GoodWhale, we have conducted a thorough analysis of HESS MIDSTREAM LP’s financials and determined its intrinsic value. Our proprietary Valuation Line has calculated that the intrinsic share value of HESS MIDSTREAM LP is around $15.8. However, the stock is currently being traded at $30.1, which is overvalued by a whopping 90.9%. Therefore, our analysis points to HESS MIDSTREAM LP stock being highly overvalued in the market right now. More…
Peers
The company’s assets include crude oil and natural gas gathering systems, pipelines, storage tanks, and terminals. Hess Midstream LP is headquartered in Houston, Texas. The company’s competitors include Rattler Midstream LP, EnLink Midstream LLC, Kinetik Holdings Inc.
– Rattler Midstream LP ($NYSE:ENLC)
EnLink Midstream LLC has a market cap of 5.96B as of 2022. The company’s return on equity is 32.09%. EnLink Midstream is engaged in the business of gathering, transporting, processing, marketing and storing natural gas and natural gas liquids (NGLs). The company operates in Oklahoma, Texas, Louisiana and New Mexico.
Summary
HESS Midstream LP is an integrated midstream company focused on providing services for crude oil, natural gas, and natural gas liquids. Analysts have been bullish on the company’s stock in recent months, citing strong fundamentals and attractive dividend yields. The company has posted strong earnings growth, low debt levels, and a healthy balance sheet. Additionally, Hess has maintained a consistent dividend payout. All of these factors have helped to make Hess Midstream LP a compelling value proposition for investors.
However, investors should pay close attention to the company’s performance in the future, as further changes in energy prices could affect its outlook.
