Latest Ratios: P/E Ratio 10.2x · EV/EBITDA 8.1x · ROE 78.1%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.2B | $4.2B | $3.3B | $1.8B | $1.2B | $710M | $354M | $1.2B | $929M | $1.1B | — |
| Enterprise Value | $10.0B | $8.0B | $6.8B | $5.0B | $4.1B | $3.3B | $2.3B | $3.0B | $1.8B | $1.0B | — |
| P/E Ratio → | 10.21 | 12.06 | 14.87 | 15.21 | 14.89 | 15.70 | 14.94 | 18.59 | 13.37 | 26.41 | — |
| P/S Ratio | 3.87 | 2.63 | 2.21 | 1.32 | 0.97 | 0.59 | 0.32 | 1.47 | 1.30 | 1.84 | — |
| P/B Ratio | 8.42 | 9.70 | 7.08 | 4.90 | 2.34 | 0.94 | 0.27 | 0.93 | 0.19 | 0.23 | — |
| P/FCF | 8.17 | 5.83 | 5.20 | 2.77 | 1.99 | 1.12 | 1.04 | 7.56 | 4.13 | 4.04 | — |
| P/OCF | 6.29 | 4.32 | 3.50 | 2.06 | 1.44 | 0.89 | 0.55 | 2.64 | 1.99 | 2.67 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.96 | 4.53 | 3.70 | 3.24 | 2.72 | 2.07 | 3.53 | 2.53 | 1.76 | — |
| EV / EBITDA | 8.11 | 6.56 | 6.03 | 4.94 | 4.24 | 3.66 | 3.08 | 5.77 | 3.56 | 2.68 | — |
| EV / EBIT | 9.88 | 7.83 | 7.25 | 6.05 | 5.17 | 4.43 | 3.85 | 7.88 | 4.75 | 3.80 | — |
| EV / FCF | — | 11.01 | 10.66 | 7.76 | 6.62 | 5.17 | 6.64 | 18.22 | 8.00 | 3.87 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 86.8% | 86.8% | 86.4% | 85.7% | 85.8% | 86.2% | 85.6% | 83.2% | 82.2% | 79.9% | 80.4% |
| Operating Margin | 62.3% | 62.3% | 61.6% | 60.7% | 62.1% | 60.4% | 52.8% | 44.4% | 53.1% | 45.4% | 40.5% |
| Net Profit Margin | 21.8% | 21.8% | 15.0% | 8.8% | 6.6% | 3.9% | 2.2% | 8.3% | 9.7% | 7.1% | 40.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 78.1% | 78.1% | 53.9% | 26.6% | 13.1% | 4.5% | 1.8% | 2.3% | 1.5% | 1.3% | 10.2% |
| ROA | 8.3% | 8.3% | 5.6% | 3.2% | 2.4% | 1.4% | 0.7% | 2.2% | 2.5% | 1.6% | 8.3% |
| ROIC | 18.6% | 18.6% | 18.4% | 17.6% | 17.6% | 16.7% | 13.7% | 6.5% | 5.6% | 6.1% | 7.7% |
| ROCE | 24.8% | 24.8% | 24.5% | 23.3% | 23.5% | 22.2% | 18.2% | 12.6% | 14.0% | 11.7% | 10.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 8.61 | 8.61 | 7.46 | 8.84 | 5.45 | 3.40 | 1.44 | 1.32 | 0.20 | — | — |
| Debt / EBITDA | 3.09 | 3.09 | 3.09 | 3.18 | 2.97 | 2.87 | 2.60 | 3.38 | 1.94 | — | — |
| Net Debt / Equity | — | 8.61 | 7.45 | 8.83 | 5.45 | 3.40 | 1.44 | 1.31 | 0.18 | -0.01 | -0.00 |
| Net Debt / EBITDA | 3.08 | 3.08 | 3.09 | 3.18 | 2.96 | 2.87 | 2.60 | 3.37 | 1.73 | -0.12 | -0.00 |
| Debt / FCF | — | 5.18 | 5.47 | 4.99 | 4.63 | 4.05 | 5.60 | 10.65 | 3.87 | -0.18 | -0.00 |
| Interest Coverage | 4.54 | 4.54 | 4.61 | 4.61 | 5.33 | 7.00 | 6.20 | 6.09 | 7.11 | 10.38 | 147.36 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.68 | 0.65 | 0.83 | 0.78 | 0.81 | 0.54 | 1.31 | 1.50 | 0.07 |
| Quick Ratio | 0.85 | 0.85 | 0.68 | 0.65 | 0.83 | 0.78 | 0.81 | 0.54 | 1.31 | 1.50 | 0.08 |
| Cash Ratio | 0.01 | 0.01 | 0.02 | 0.03 | 0.02 | 0.01 | 0.02 | 0.02 | 0.79 | 0.63 | 0.00 |
| Asset Turnover | — | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.32 | 0.26 | 0.24 | 0.22 | 0.20 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 33.90 | 33.98 | 33.73 | 35.26 | 36.48 | 31.16 | 37.72 | 34.76 | 37.67 | 31.93 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 9.5% | 8.2% | 7.1% | 7.2% | 7.3% | 7.0% | 8.9% | 6.9% | 8.6% | 44.8% | — |
| Payout Ratio | 99.2% | 99.2% | 105.5% | 107.5% | 108.5% | 106.5% | 131.7% | 121.8% | 116.1% | 1158.0% | 149.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.8% | 8.3% | 6.7% | 6.6% | 6.7% | 6.4% | 6.7% | 5.4% | 7.5% | 3.8% | — |
| FCF Yield | 12.2% | 17.1% | 19.2% | 36.1% | 50.3% | 89.0% | 96.2% | 13.2% | 24.2% | 24.7% | — |
| Buyback Yield | 6.5% | 9.4% | 9.1% | 22.5% | 32.3% | 100.0% | 0.0% | 12.6% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 16.0% | 17.7% | 16.2% | 29.6% | 39.6% | 100.0% | 8.9% | 19.4% | 8.6% | 44.8% | — |
| Shares Outstanding | — | $123M | $89M | $56M | $41M | $26M | $18M | $55M | $55M | $54M | $55M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying HESM stock.
Hess Midstream LP's current P/E ratio is 10.2x. The historical average is 16.2x.
Hess Midstream LP's current EV/EBITDA is 8.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.5x.
Hess Midstream LP's return on equity (ROE) is 78.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 9.0%.
Based on historical data, Hess Midstream LP is trading at a P/E of 10.2x. Compare with industry peers and growth rates for a complete picture.
Hess Midstream LP's current dividend yield is 9.50% with a payout ratio of 99.2%.
Hess Midstream LP has 86.8% gross margin and 62.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Hess Midstream LP's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage and sponsor concentration
Metrics are mathematically derived from official filings.
Discount Multiples Imply Limited Growth Expectations
Based on reported figures, HESM trades at a trailing P/E of 10.21 and EV/EBITDA of 8.11, both below the Targa peer P/E of 23.27 and EV/EBITDA of 12.74, suggesting the market prices in slower growth or a higher perceived risk premium.
The PEG ratio of 0.60 appears low relative to typical midstream multiples, which may indicate the market is discounting earnings durability rather than growth. The forward EV/EBITDA of 10.93 sits above the trailing 8.11, implying the market expects EBITDA to decline, which is consistent with the recent Q3 2026 EPS miss. The 9.5% dividend yield reinforces that the equity is being valued primarily as an income instrument, and investors should monitor whether distribution coverage holds if earnings continue to soften.
Elevated Leverage Persists Despite Coverage
As reported in the filings, HESM's debt-to-EBITDA ratio of 11.34 and debt-to-equity of 8.90 in Q3 2026 remain far above the Targa peer's leverage profile, though interest coverage of 4.94 times indicates current debt service is manageable.
The debt-to-EBITDA ratio has moved within a narrow band between roughly 11.3 and 12.7 over the ten quarters shown, suggesting leverage is being held steady rather than actively reduced. Interest coverage improved from 4.27 in Q1 2025 to 4.94 in Q3 2026, which may reflect stronger operating income rather than deleveraging. Refinancing and covenant exposure cannot be fully assessed from the supplied data, and investors should monitor whether elevated leverage constrains flexibility if sponsor volumes soften.
Thin Liquidity Relies on Operating Inflows
According to the reported balance sheet, HESM's current ratio fell to 0.25 in Q3 2026 from 1.11 in Q2 2024, a level that suggests short-term obligations exceed liquid assets and that the company depends on continuous operating cash generation.
The steady decline in the quick ratio to match the current ratio indicates that the liquidity position is not supported by inventory or receivables buffers, which is structurally expected for a fee-based midstream business with minimal working capital. Cash held near $1.0M in Q3 2026 implies a just-in-time cash management posture, which may reflect parent-level cash sweeps. Under severe stress, the position would likely require reliance on revolver access or distribution adjustments, though the supplied data does not confirm available credit capacity.
Margin Reset Clouds Earnings Power Read
Based on the quarterly ratio data, HESM's gross margin dropped from roughly 86 to 87 percent through 2025 to 65.4 percent in Q3 2026, while operating margin held near 62 to 64 percent, suggesting the gross margin shift may reflect cost reclassification rather than operating deterioration.
Operating margin stability across the period supports the view that underlying profitability has been preserved, even as the reported gross margin reset complicates comparisons. Net margin rose from 13.6 percent in Q2 2024 to 24.2 percent in Q3 2026, though the most recent EPS miss suggests that earnings conversion may be weakening at the margin. Operating margin is the more reliable indicator of earning power here, given the accounting discontinuity in gross margin.
Cheap Multiples Can Mask Structural Leverage
The ratio most commonly misapplied to HESM is the low P/E of 10.21, which appears attractive on its face but may obscure the 8.90 debt-to-equity ratio and the fact that a substantial share of earnings is paid out as distributions rather than retained.
Because the equity base is small relative to debt, P/E and P/B of 8.42 can be distorted by leverage, and a distributable cash flow or EV-based yield framework may provide a clearer read on value. Investors should monitor whether the 9.5 percent yield is sustainable given free cash flow volatility and the Q3 2026 earnings miss. A more appropriate lens would be distribution coverage by distributable cash flow alongside leverage-adjusted EV multiples.