Latest Ratios: P/E Ratio 13.3x · EV/EBITDA 9.5x · 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 | $7.9B | $4.2B | $3.3B | $1.8B | $1.2B | $710M | $354M | $1.2B | $929M | $1.1B | — |
| Enterprise Value | $11.7B | $8.0B | $6.8B | $5.0B | $4.1B | $3.3B | $2.3B | $3.0B | $1.8B | $1.0B | — |
| P/E Ratio → | 13.34 | 12.06 | 14.87 | 15.21 | 14.89 | 15.70 | 14.94 | 18.59 | 13.37 | 26.41 | — |
| P/S Ratio | 4.86 | 2.62 | 2.21 | 1.32 | 0.97 | 0.59 | 0.32 | 1.47 | 1.30 | 1.84 | — |
| P/B Ratio | 10.73 | 9.70 | 7.08 | 4.90 | 2.34 | 0.94 | 0.27 | 0.93 | 0.19 | 0.23 | — |
| P/FCF | 10.83 | 5.83 | 5.20 | 2.77 | 1.99 | 1.12 | 1.04 | 7.56 | 4.13 | 4.04 | — |
| P/OCF | 8.02 | 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 | — | 4.94 | 4.53 | 3.70 | 3.24 | 2.72 | 2.07 | 3.53 | 2.53 | 1.76 | — |
| EV / EBITDA | 9.54 | 6.56 | 6.03 | 4.94 | 4.24 | 3.66 | 3.08 | 5.77 | 3.56 | 2.68 | — |
| EV / EBIT | 11.56 | 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 | 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% |
| 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 | — | 33.81 | 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 | 7.5% | 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 | 7.5% | 8.3% | 6.7% | 6.6% | 6.7% | 6.4% | 6.7% | 5.4% | 7.5% | 3.8% | — |
| FCF Yield | 9.2% | 17.1% | 19.2% | 36.1% | 50.3% | 89.0% | 96.2% | 13.2% | 24.2% | 24.7% | — |
| Buyback Yield | 5.1% | 9.4% | 9.1% | 22.5% | 32.3% | 100.0% | 0.0% | 12.6% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 12.5% | 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 |
Sponsor-dependent capital structure
Based on reported figures, HESM trades at a forward P/E of 12.81 and an EV/EBITDA of 9.42, suggesting that the market is pricing in a safety premium for its fee-based revenue model relative to more volatile, commodity-exposed midstream peers like Targa Resources.
The current valuation multiples appear to imply a stable, albeit slow-growth, outlook for the company's Bakken-based assets. Investors should monitor whether the 7.6% dividend yield remains sustainable without further debt accumulation, as the current PEG ratio of 0.78 may suggest the market is underestimating the long-term terminal value of the gathering infrastructure.
As reported in financial statements, HESM's ROIC has remained range-bound between 4.3% and 4.7% over the last ten quarters, indicating that the company is struggling to compound returns on its invested capital despite maintaining high operating margins throughout the period.
The persistent gap between high operating margins and low ROIC suggests that the company's asset-heavy infrastructure requires significant ongoing investment, which may be diluting the efficiency of capital deployment. This trend warrants further investigation into whether expansion projects are generating sufficient incremental returns to justify the associated debt burden.
According to recent SEC filings, HESM's debt-to-equity ratio reached 10.06 in 2026Q1, a level that appears elevated compared to broader energy sector averages and suggests a capital structure that prioritizes aggressive shareholder distributions over the maintenance of a robust, deleveraged balance sheet.
The interest coverage ratio of 4.36x provides a moderate buffer, but the reliance on debt to fund operations and distributions leaves the company vulnerable to shifts in credit market conditions. Investors should monitor the company's ability to service this debt if the sponsor's drilling activity in the Williston Basin experiences a sustained downturn.
As evidenced by the company's financial data, the reliance on Distributable Cash Flow as a primary performance metric often obscures the impact of maintenance capital expenditures, which are essential for sustaining the long-term integrity of the gathering and processing asset base.
Analysts frequently misapply DCF by failing to adjust for the lumpy nature of capital spending, which can lead to an overestimation of the company's true free cash flow generation. A more accurate assessment would involve evaluating the cash flow yield after accounting for all necessary sustaining capital, rather than relying on management's adjusted figures.
Includes 30+ ratios · 14 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HESM stock.
Hess Midstream LP's current P/E ratio is 13.3x. The historical average is 16.2x. This places it at the 11th percentile of its historical range.
Hess Midstream LP's current EV/EBITDA is 9.5x. 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 13.3x. This is at the 11th 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 7.46% with a payout ratio of 99.2%.
Hess Midstream LP has 63.9% gross margin and 62.2% 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.