Latest Ratios: P/E Ratio 13.6x · EV/EBITDA 9.6x · 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 | $8.0B | $4.2B | $3.3B | $1.8B | $1.2B | $710M | $354M | $1.2B | $929M | $1.1B | — |
| Enterprise Value | $11.8B | $8.0B | $6.8B | $5.0B | $4.1B | $3.3B | $2.3B | $3.0B | $1.8B | $1.0B | — |
| P/E Ratio → | 13.56 | 12.06 | 14.87 | 15.21 | 14.89 | 15.70 | 14.94 | 18.59 | 13.37 | 26.41 | — |
| P/S Ratio | 4.96 | 2.63 | 2.21 | 1.32 | 0.97 | 0.59 | 0.32 | 1.47 | 1.30 | 1.84 | — |
| P/B Ratio | 10.90 | 9.70 | 7.08 | 4.90 | 2.34 | 0.94 | 0.27 | 0.93 | 0.19 | 0.23 | — |
| P/FCF | 11.00 | 5.83 | 5.20 | 2.77 | 1.99 | 1.12 | 1.04 | 7.56 | 4.13 | 4.04 | — |
| P/OCF | 8.15 | 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 | 9.64 | 6.56 | 6.03 | 4.94 | 4.24 | 3.66 | 3.08 | 5.77 | 3.56 | 2.68 | — |
| EV / EBIT | 11.69 | 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 | 7.3% | 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 | 7.4% | 8.3% | 6.7% | 6.6% | 6.7% | 6.4% | 6.7% | 5.4% | 7.5% | 3.8% | — |
| FCF Yield | 9.1% | 17.1% | 19.2% | 36.1% | 50.3% | 89.0% | 96.2% | 13.2% | 24.2% | 24.7% | — |
| Buyback Yield | 5.0% | 9.4% | 9.1% | 22.5% | 32.3% | 100.0% | 0.0% | 12.6% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 12.3% | 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 13.6x. The historical average is 16.2x. This places it at the 22th percentile of its historical range.
Hess Midstream LP's current EV/EBITDA is 9.6x. 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 13.6x. This is at the 22th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Hess Midstream LP's current dividend yield is 7.34% 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
Chevron integration and contract renegotiation
Metrics are mathematically derived from official filings.
Margin Resilience Amid Cost Spike
Despite a gross margin dip to 64.8% in 2026Q2, operating margin held at 63.5%, reflecting a lean cost structure. According to quarterly filings, net margin expanded to 24.2%, up from 12.6% a year earlier.
The gross margin anomaly in 2026Q2 appears driven by a one-off COGS spike, yet operating margin remained stable, indicating that the core fee-based model is resilient. Net margin improvement over the past year suggests operating leverage and disciplined SG&A, but investors should monitor whether the COGS spike recurs. The high operating margin underscores the toll-road nature of the assets, where incremental volumes flow through at high incremental margins.
ROE Climbing on Equity Erosion
ROE rose to 25.3% in 2026Q2 from 12.0% in 2024Q1, as reported in financial statements, but this is partly due to a shrinking equity base. ROIC remained flat near 4.6%, suggesting no real improvement in underlying capital efficiency.
The doubling of ROE over ten quarters is flattered by a 19% decline in equity from distributions, not by a step-change in operating performance. ROIC's stability near 4.5% indicates that the business is not compounding returns on invested capital, consistent with a mature asset base. The gap between ROE and ROIC highlights the high leverage, which amplifies equity returns but also increases financial risk.
Working Capital Leverage Shifts
DSO rose modestly to 35 days in 2026Q2 from 30 days in 2024Q1, while DPO swung from 101 to 28 days, per quarterly data. This suggests HESM is paying suppliers faster, potentially reducing cash conversion flexibility.
The sharp drop in DPO from 123 days in 2025Q4 to 28 days in 2026Q2 indicates a deliberate shift in payment terms, possibly to secure supply or as part of Chevron integration. This reduces the cash conversion cycle benefit, but the impact is muted given the high FCF margin. Asset turnover remains low at 0.09, reflecting the capital-intensive nature of midstream infrastructure, which is typical for the sector.
Leverage Creep Amid Stable Coverage
Debt-to-equity climbed to 9.48 in 2026Q2 from 8.71 in 2024Q1, while D/EBITDA stayed near 12x, as per balance sheet data. Interest coverage remained stable around 4.5x, indicating debt service is still manageable.
The rising D/E ratio is a function of both higher debt and lower equity, but the stable D/EBITDA suggests that cash flow is keeping pace with debt. Interest coverage of 4.5x provides a cushion, though it leaves limited room for a significant downturn. The Chevron acquisition introduces refinancing and covenant risk, as a new sponsor may reassess the capital structure.
Thin Liquidity Relies on Cash Flow
Current ratio fell to 0.77 in 2026Q2, with cash of only $5M, as reported in the latest balance sheet. This indicates a reliance on operating cash flow to meet short-term obligations, which is typical for midstream MLPs.
The sub-1.0 current ratio is not unusual for a company with stable, contracted cash flows, but the minimal cash buffer raises sensitivity to operational disruptions. The company's ability to fund capex and distributions from operating cash flow is critical, as external liquidity is limited. Investors should monitor the MVC shortfall payments, which can provide cash without physical volumes, potentially masking underlying utilization.
MVC Distorts Cash Flow Metrics
The most misapplied ratio is P/FCF, as shortfall payments inflate operating cash flow without corresponding physical volumes. According to SEC filings, cumulative OCF exceeded net income by $1.7B over ten quarters, suggesting a quality gap.
Investors often use P/FCF to gauge valuation, but HESM's FCF includes MVC shortfall payments that are not tied to actual throughput. This can overstate the sustainability of cash flows if volumes decline. A better metric is distributable cash flow (DCF) adjusted for maintenance capex and shortfall payments, which provides a clearer picture of cash generation. The low cash balance and high payout ratio further underscore the need to scrutinize cash flow quality.