Hess Midstream LP (HESM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+60.4%

$51.63

vs $32.19 price

Levered DCF

$339.14

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.18

Grey zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.02×	14.75×	14.99×	14.74×	15.7×	14.71×	18.59×	13.37×
P/B	7.47×	6.21×	5.23×	5.04×	3.48×	2.82×	9.42×	0.27×
P/S	2.63×	2.21×	1.32×	0.97×	0.59×	0.32×	1.46×	1.3×
EV / EBITDA	6.48×	5.95×	4.9×	4.21×	3.62×	3.04×	5.72×	3.56×
Gross margin	86.8%	86.4%	85.7%	85.8%	86.2%	85.6%	83.2%	82.2%
Operating margin	62.3%	61.6%	60.7%	62.1%	60.4%	52.8%	44.4%	53.1%
Net margin	21.8%	15.0%	8.8%	6.6%	3.9%	2.2%	8.3%	9.7%
Current ratio	0.85×	0.68×	0.65×	0.83×	0.78×	0.81×	0.54×	1.31×
Debt / equity	6.64×	6.54×	9.44×	11.77×	12.56×	15.28×	13.33×	0.29×
Interest coverage	4.47×	4.55×	4.56×	5.3×	6.9×	6.09×	6.04×	7.1×
Dividend yield	8.2%	7.1%	7.2%	7.4%	7.0%	9.0%	6.9%	42.7%
Payout ratio	99.2%	105.5%	107.5%	108.5%	106.5%	131.7%	121.8%	573.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	62.1%	42.0%	34.9%	34.2%	22.7%	19.2%	53.3%	2.0%
Return on invested capital	20.4%	21.0%	21.4%	22.1%	21.3%	17.4%	12.1%	13.2%
Return on assets	8.0%	5.4%	3.1%	2.3%	1.3%	0.7%	2.1%	2.3%
Free cash flow yield	17.1%	19.2%	36.2%	50.4%	89.0%	96.7%	13.3%	24.3%
Earnings yield	8.3%	6.8%	6.7%	6.8%	6.5%	6.8%	5.7%	7.5%
Enterprise value	$8B	$6.8B	$5B	$4.1B	$3.3B	$2.3B	$3B	$1.8B
Net debt / EBITDA	3.05×	3.05×	3.15×	2.95×	2.84×	2.57×	3.35×	1.72×
Cash conversion cycle (days)	-54	-127	-117	-91	-23	-39	-41	-19