Hess Midstream LP (HESM) Financial Ratios
14 years of historical data (2012–2025) · Energy · Oil & Gas Midstream
EV/EBITDA
↑
9.36
↑+84% vs avg
5yr avg: 5.09
30Y Low2.7·High6.6
P/FCF
↑
10.53
↑+211% vs avg
5yr avg: 3.38
30Y Low1.0·High7.6
P/B Ratio
↑
10.34
↑+107% vs avg
5yr avg: 4.99
30Y Low0.2·High9.7
ROE
↑
78.1%
↓+122% vs avg
5yr avg: 35.2%
30Y Low-65%·High78%
Debt/EBITDA
↑
3.09
+2% vs avg
5yr avg: 3.04
30Y Low1.9·High12.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
HESM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Hess Midstream LP trades at 12.9x earnings, 12% below its 5-year average of 14.5x, sitting at the 11th percentile of its historical range. Compared to the Energy sector median P/E of 15.5x, the stock trades at a discount of 17%. On a free-cash-flow basis, the stock trades at 10.5x P/FCF, 211% above the 5-year average of 3.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.7B | $4.2B | $3.3B | $1.8B | $1.2B | $710M | $354M | $1.2B | $929M | $1.1B | — |
| Enterprise Value | $11.4B | $8.0B | $6.8B | $5.0B | $4.1B | $3.3B | $2.3B | $3.0B | $1.8B | $1.0B | — |
| P/E Ratio → | 12.86 | 12.06 | 14.87 | 15.21 | 14.89 | 15.70 | 14.94 | 18.59 | 13.37 | 26.41 | — |
| P/S Ratio | 4.73 | 2.62 | 2.21 | 1.32 | 0.97 | 0.59 | 0.32 | 1.47 | 1.30 | 1.84 | — |
| P/B Ratio | 10.34 | 9.70 | 7.08 | 4.90 | 2.34 | 0.94 | 0.27 | 0.93 | 0.19 | 0.23 | — |
| P/FCF | 10.53 | 5.83 | 5.20 | 2.77 | 1.99 | 1.12 | 1.04 | 7.56 | 4.13 | 4.04 | — |
| P/OCF | 7.79 | 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
HESM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Hess Midstream LP's enterprise value stands at 9.4x EBITDA, 84% above its 5-year average of 5.1x. The Energy sector median is 7.8x, placing the stock at a 19% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.94 | 4.53 | 3.70 | 3.24 | 2.72 | 2.07 | 3.53 | 2.53 | 1.76 | — |
| EV / EBITDA | 9.36 | 6.56 | 6.03 | 4.94 | 4.24 | 3.66 | 3.08 | 5.77 | 3.56 | 2.68 | — |
| EV / EBIT | 11.34 | 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 | — |
HESM Profitability
Margins and return-on-capital ratios measuring operating efficiency
Hess Midstream LP earns an operating margin of 62.2%, significantly above the Energy sector average of 13.8%. Operating margins have expanded from 60.7% to 62.2% over the past 3 years, signaling improving operational efficiency. Return on equity of 78.1% is exceptionally high — well above the sector median of 7.2%. ROIC of 18.6% represents solid returns on invested capital versus a sector median of 6.2%.
Margins
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 | 63.9% | 63.9% | 86.4% | 85.7% | 85.8% | 86.2% | 85.6% | 83.2% | 82.2% | 79.9% | 80.4% |
| Operating Margin | 62.2% | 62.2% | 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% |
Return on Capital
| 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% |
HESM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Hess Midstream LP carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (18% above the sector average of 2.6x). Net debt stands at $3.8B ($3.8B total debt minus $2M cash). Interest coverage of 4.5x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| 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 |
HESM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.85x is below 1.0, meaning current liabilities exceed current assets. The current ratio has improved from 0.65x to 0.85x over the past 3 years.
| 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 | — | 33.81 | 33.98 | 33.73 | 35.26 | 36.48 | 31.16 | 37.72 | 34.76 | 37.67 | 31.93 |
HESM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Hess Midstream LP returns 13.0% to shareholders annually — split between a 7.7% dividend yield and 5.2% buyback yield. The payout ratio of 99.2% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 7.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 7.7% | 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% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.8% | 8.3% | 6.7% | 6.6% | 6.7% | 6.4% | 6.7% | 5.4% | 7.5% | 3.8% | — |
| FCF Yield | 9.5% | 17.1% | 19.2% | 36.1% | 50.3% | 89.0% | 96.2% | 13.2% | 24.2% | 24.7% | — |
| Buyback Yield | 5.2% | 9.4% | 9.1% | 22.5% | 32.3% | 100.0% | 0.0% | 12.6% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 13.0% | 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 |
Peer Comparison
Compare HESM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 HESMYou | $8B | 12.9 | 9.4 | 10.5 | 63.9% | 62.2% | 78.1% | 18.6% | 3.1 |
 TRGP | $56B | 30.3 | 14.7 | 95.0 | 26.5% | 20.1% | 48.4% | 13.2% | 3.5 |
 DKL | $3B | 15.3 | 8.7 | — | 20.9% | 18.0% | 847.5% | 14.1% | 0.1 |
 WES | $17B | 14.3 | 10.9 | 11.5 | 68.5% | 41.3% | 31.0% | 10.5% | 3.9 |
 AM | $10B | 25.2 | 15.7 | 13.4 | 65.3% | 51.2% | 20.2% | 9.4% | 3.8 |
 MPLX | $58B | 11.8 | 13.4 | 14.1 | 45.2% | 40.3% | 34.4% | 9.9% | 4.3 |
 CVX | $346B | 26.2 | 10.4 | 20.9 | 30.4% | 9.0% | 7.1% | 6.2% | 1.3 |
 EOG | $69B | 14.3 | 5.9 | 17.6 | 68.1% | 35.1% | 16.8% | 19.1% | 0.7 |
 NCSM | $130M | 5.7 | 6.0 | 6.2 | 38.2% | 6.4% | 18.3% | 7.9% | 0.7 |
 ET | $65B | 13.9 | 9.1 | 16.8 | 21.8% | 11.4% | 10.2% | 6.3% | 4.9 |
 EPD | $79B | 13.8 | 11.8 | 26.7 | 13.6% | 13.1% | 19.3% | 8.3% | 3.7 |
| Energy Median | — | 15.5 | 7.8 | 13.8 | 33.7% | 13.8% | 7.2% | 6.2% | 2.6 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 14 years · Updated daily
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HESM — Frequently Asked Questions
Quick answers to the most common questions about buying HESM stock.
What is Hess Midstream LP's P/E ratio?
Hess Midstream LP's current P/E ratio is 12.9x. The historical average is 16.2x. This places it at the 11th percentile of its historical range.
What is Hess Midstream LP's EV/EBITDA?
Hess Midstream LP's current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.5x.
What is Hess Midstream LP's ROE?
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%.
Is HESM stock overvalued?
Based on historical data, Hess Midstream LP is trading at a P/E of 12.9x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Hess Midstream LP's dividend yield?
Hess Midstream LP's current dividend yield is 7.73% with a payout ratio of 99.2%.
What are Hess Midstream LP's profit margins?
Hess Midstream LP has 63.9% gross margin and 62.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Hess Midstream LP have?
Hess Midstream LP's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.