Hess Midstream LP — Oil & Gas Midstream. Scored on the same transparent 7-signal model behind the daily rankings.
★
HESM
Hess Midstream LP · Oil & Gas Midstream
FCF$796mC+
Rev+8.4%B
D/E——
P/E13.4xB+
PEG1.60C+
64.8Score
$38.63$8.0B
1Y Target$36.83Analyst consensus · 6 analysts
5Y Target$46.50Compound horizon
10Y Target$59.64Long-dated conviction
FCF$796mTTMC+
FCF $796m — respectable but not differentiating
Rev+8.4%TTM YoYB
Revenue +8.4% — at or above S&P median
D/E——
D/E data unavailable — neutral default
P/E13.4xB+
P/E 13.4 — below the Energy median (≈40th pctile)
PEG1.60proxyC+
PEG 1.60 — modest premium; above fair value · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 64.8
Quality0.81
Growth0.50
Value0.67
Why this score
Raising its dividend
Diluting shareholders
Cyclical growth
Short track record
Entry · Margin of safety
52-week rangeMid-range
12% off the 12-month high
vs DCF fair value64% belowest. fair value ~$109
What the price assumes: free cash flow compounding at ~-16% a year for the next decade — vs the ~10% a year our model projects from current growth and analyst estimates.
Why now
Oil & Gas Midstream · market cap $8.0b. 12% off the 52-week high of $44.14. 6 sell-side analysts publish a mean 1-yr target of $36.83 (implying -5% upside).
Moat
Net margin 23% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Dividend payout 103% of earnings on a 7.8% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Hedge-book exposure — many commodity producers hedge forward production; if the hedge book is concentrated at prices well below spot, the upside the market expects is already locked away.
Horizon
1-3 yr $36.83 (6-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $46.50 at ~4% CAGR — dividend + buyback compounding. 10 yr $59.64 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Score history · HESM
Trend
-3.6 over 15 daily scores
From 68.4 (Jun 22) → 64.8 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
Position sizing · HESM
$
%
%
Shares to buy
51
Position size
$1,970
3.9% of portfolio
Stop price
$28.97
25% below $38.63
$ at risk if stopped
$492.53
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Hess Midstream LP (HESM): score, valuation & FAQ
Hess Midstream LP (HESM) is a Oil & Gas Midstream company that scores 64.8 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (B+). On valuation, HESM sits about 64% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -16% annual free-cash-flow growth over the next decade.
Is HESM a good stock to buy?
Bull Rankings scores HESM 64.8 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (B+). A score is a quantitative screen of Hess Midstream LP's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does HESM score 64.8 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). HESM earns its highest marks on P/E (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is HESM overvalued or undervalued?
Based on $38.63, HESM sits about 64% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -16% annual free-cash-flow growth over the next decade. It trades at a 13.4x× P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in HESM?
Dividend payout 103% of earnings on a 7.8% yield — distribution coverage is thin; one earnings stumble could force a dividend cut. Hedge-book exposure — many commodity producers hedge forward production; if the hedge book is concentrated at prices well below spot, the upside the market expects is already locked away.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.