Hess Midstream LP
HESMAbout the company
Hess Midstream LP acquires, owns, operates, and develops midstream assets and provide fee-based services to sponsor, its subsidiaries, and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities.
Investment snapshot
Positive
4
BUY / PASS
Neutral / negative
5 / 7
NEUTRAL / FAIL
Median fair value
$52.47
+69.5% vs price
Models with upside
3 / 17
Positive margin of safety
Strongest signal
9 of 10 pass — Buffett objects
Key risk
All 12 investors flag HESM's debt & leverage
Framework analysis
| Verdict | Meaning |
|---|---|
| BUY | Positive purchase signal: the framework's buy requirements are met. |
| PASS | The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state. |
| NEUTRAL | Neither a positive nor negative conclusion. It does not mean to hold an existing position. |
| FAIL | The company does not clear the framework's requirements. |
| Ranked | Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL. |
Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.
| Metric | Graham Defensive Value | Buffett Quality Compounder | Lynch GARP | Greenblatt Magic Formula | Piotroski F-Score | Dreman Contrarian Value | Munger Quality Focus | Pabrai Dhandho Framework | Akre Three-Legged Stool | Marks Risk-Aware Value | Ackman Activist Value | Templeton Global Bargain Hunter | Sleep Scale Economies Shared | Asness Systematic Factors | Neff Low-P/E Total Return | Schloss Asset-Value Discipline | O'Shaughnessy Systematic Factor Composite |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Verdict | FAIL | PASS | FAIL | BUY · Rank #402 (Top 13%) | NEUTRAL | FAIL | PASS | NEUTRAL | NEUTRAL | FAIL | BUY | FAIL | BUY | NEUTRAL | FAIL | FAIL | NEUTRAL |
| Score | |||||||||||||||||
| Analysis | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… | Checking access… |
| Intrinsic Value (annual) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||
| Margin of Safety | N/A | N/A | N/A | +11.0% | N/A | N/A | +55.9% | N/A | -306.2% | N/A | +59.8% | N/A | N/A | N/A | N/A | N/A | N/A |
| Financial Basis | TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Annual history · FY 2025 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-25 Score computed: 2026-11-14 | Annual history · FY 2025 · Balance sheet at 2026-09-30 · TTM ended 2026-09-30 vs 2025-09-30 · TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 Latest source filing: 2026-02-25 Score computed: 2026-11-14 | Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Qualitative assessment · Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-02-25 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-25 Score computed: 2026-11-14 | Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-02-25 Score computed: 2026-11-14 | TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Price history 2025-01-01–2026-11-01 · Annual history · FY 2025 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 · TTM ended 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | Annual history · FY 2025 · Balance sheet at 2026-09-30 Latest source filing: 2026-11-05 Score computed: 2026-11-14 | TTM ended 2026-09-30 · Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-11-05 Score computed: 2026-11-14 |
Where It Passes
- Cash Flow90% pass✓ 11✗ 1▾
9 of 10 pass — Buffett objects
Free Cash Flow Proxy✗BuffettPositive and growingFCF Positive and Growing$901.1M✓LynchPositive and growingOperating Cash Flow$983.8M✓PiotroskiCFO > 0(CFO / Total Assets) vs ROACFO/Assets=22.42%, ROA=8.04%✓PiotroskiCFO/Assets > ROAPrice / (CFO / Shares)6.5x✓Dreman< 8xP/E or FCF YieldFCF Yield=11.4%✓PabraiP/E < 15 or FCF Yield > 10%FCF Positive9/9 years FCF positive✓MarksPositive FCF in majority of recent years(OCF - CapEx) / Market Cap14.0%✓Ackman>= 4%Price / FCF per Share8.8x✓Ackman<= 25Positive Operating Cash Flow frequency9/9 years positive✓SleepPositive OCF in >= 70% of available yearsOperating Cash Flow - Capital Expenditures$901.1M✓Neff> $0 (app proxy for a strong fundamental case)(Operating cash flow - capex) / market capitalization+14.12%; #449/4519 (top 9.9%)✓OshaughnessyTop 10% of eligible cross-section - Efficiency75% pass✓ 9✗ 2▾
6 of 8 pass — Graham and Dreman object
Current Ratio0.25✗Graham>= 2.0ROIC (3-5 yr avg)18.1%✓Buffett> 10%ROIC - WACC+8.1%✓BuffettPositive (WACC = 10%)EBIT / (NWC + Net Fixed Assets)30.8%✓Greenblatt> 25%Current Ratio Change YoY0.68 -> 0.85✓PiotroskiIncreased YoYRevenue / Total Assets Change YoY0.36x -> 0.37x✓PiotroskiImproved YoYCurrent Assets / Current Liabilities0.25✗Dreman> 1.5Return on Invested Capital19.3%✓Munger> 15%ROIC (high and growing)FY2023: ROIC=18.2%; FY2024: ROIC=18.1%; FY2025: ROIC=18.3%✓AkreLatest 3 consecutive FYs: ROIC > 15% in eachReinvestment Rate x ROIC18.3% (RR=100% x ROIC=18.3%)✓AkreReinvestment Rate * ROIC > 10%ROIC (5-year)5/5 years above 12% (latest 18.3%)✓SleepROIC > 12% in a majority of years - Valuation models75% pass✓ 3✗ 1▾
Models split on HESM at $30.95 — fair values range $7.62–$77.00
Greenblatt fair value$34.79✓Greenblatt+11.0% margin vs $30.95Munger fair value$70.15✓Munger+55.9% margin vs $30.95Akre fair value$7.62✗Akre-306.2% margin vs $30.95Ackman fair value$77.00✓Ackman+59.8% margin vs $30.95
Where It Falls Short
- Debt & Leverage0% pass✗ 15▾
All 12 investors flag HESM's debt & leverage
LT Debt vs Net Current AssetsLT Debt $3.1B vs NCA $-520.1M✗GrahamLT Debt <= Net Current AssetsDebt/Equity & Interest CoverageD/E: 6.64, IC: N/A✗BuffettD/E < 0.5 AND Interest Coverage > 5xTotal Debt / Equity7.02✗Lynch< 0.33Cash - Long-term Debt$-3.1B✗LynchPositive preferredLT Debt / Total Assets Change83.10% -> 85.22%✗PiotroskiDecreased YoYCurrent Assets / Current Liabilities0.25✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)Total Debt / Shareholders' Equity7.02✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00xDebt Levels7.02✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3Interest Coverage & Debt/EBITDA✗MarksInterest Coverage > 3x; Debt/EBITDA < 4xTotal Debt / Shareholders Equity7.02✗Ackman<= 1.0Negative debt-to-equity (higher means less debt)-7.0183; #4117/4210 (top 97.8%)✗AsnessTop 30% of eligible cross-section - Valuation23% pass✓ 8✗ 20▾
10 of 13 flag HESM's valuation — Graham, Lynch, Dreman +7 more
Net income / market capitalization+5.90%; #1435/6340 (top 22.6%)✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-sectionPrice / 3-yr avg EPS✗Graham<= 15xPrice-to-Book Ratio11.3x✗Graham<= 1.5xP/E x P/B✗Graham<= 22.5Basic earnings-growth PEG (dividends excluded)✗Lynch< 1.0 (ideally < 0.5)EBIT / Enterprise Value10.1%✓Greenblatt> 10%Earnings Yield + ROC AssessmentEY=10.1%, ROC=30.8%✓GreenblattBoth EY > 10% and ROC > 25%Price / EPS✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)Price / (CFO / Shares)6.5x✓Dreman< 8xPrice / Book Value per Share11.3x✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)Valuation Reasonableness✗MungerP/E < 25 or Owner Earnings Yield > 5%P/E or FCF YieldFCF Yield=11.4%✓PabraiP/E < 15 or FCF Yield > 10%P/B or P/E vs. Historical AverageP/B=11.3x✗MarksP/E < 15 or P/B < 2.0Discount to Intrinsic Value✗Marks>= 20% below intrinsic valuePrice / FCF per Share8.8x✓Ackman<= 25Price vs. Trailing Low100% of trailing low ($30.95)✓Templeton<= 120% of trailing low (certified split-adjusted live window)Positive book equity / market capitalization+0.0804; #4857/6449 (top 75.3%)✗AsnessTop 30% of eligible cross-sectionPrice / Diluted EPS✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)(EPS CAGR % + Dividend Yield %) / P/E✗Neff> 0.7 (Neff's published traditional edge)Price / Tangible Book Value per Share11.31x✗SchlossP/TBV <= 1.00x (app cutoff)Book Value per Share Change-41.3%✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)Revenue / market capitalization+0.2513; #3546/5247 (top 67.6%)✗OshaughnessyTop 10% of eligible cross-section(Operating cash flow - capex) / market capitalization+14.12%; #449/4519 (top 9.9%)✓OshaughnessyTop 10% of eligible cross-sectionTrailing six-month price return through the evaluation date-21.78%; #4061/6202 (top 65.5%)✗OshaughnessyTop 10% of eligible cross-section - Growth25% pass✓ 5✗ 8▾
6 of 8 flag HESM's growth — Graham, Lynch, Dreman +3 more
EPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthBasic earnings-growth PEG (dividends excluded)✗Lynch< 1.0 (ideally < 0.5)3-5 Year EPS CAGR✗Lynch15-30% (Fast Grower); > 0% to passInventory Growth vs Revenue GrowthN/A (no inventory)✓LynchInventory growth < Revenue growthEPS Growth Direction✗DremanPositive over recent yearsEPS CAGR✗Dreman> 5% annualizedPositive Net Income Frequency9/9 years positive✓MarksPositive net income in >= 7 of last 10 years3yr Median Revenue Growth8.4%✓Ackman>= 5%Positive EPS Growth Frequency✗AckmanPositive EPS growth in >= 3 of last 5 years5-Year EPS CAGR✗Templeton> 0% (5-year EPS CAGR)Revenue growth vs. gross and operating margin trendrevenue up, operating margin 60.6% -> 62.2%✓SleepRevenue rising; gross margin flat or falling; operating margin holding5-year Revenue CAGR8.2%✓SleepCAGR > 7%3-5 Year Diluted EPS CAGR✗Neff7%-20% annualized - Profitability31% pass✓ 19✗ 16▾
11 of 16 flag HESM's profitability — Graham, Buffett, Lynch +8 more
Net income / market capitalization+5.90%; #1435/6340 (top 22.6%)✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-sectionPositive EPS (10 years)0/10 years positive✗GrahamPositive EPS every year for 10 yearsEPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthNet Income Positive (10+ years)9/10 years positive✗BuffettPositive every year for 10+ yearsROE (up to 5-year arithmetic mean)32.2%✓Buffett> 15% arithmetic mean (app rule)Operating Margin (10-yr trend)62.2% (latest)✓BuffettStable or rising over 10 yearsFree Cash Flow Proxy✗BuffettPositive and growingEarnings Variance (10-yr CoV)✗BuffettCoV < 0.3Retained Earnings Effectiveness✗Buffett$1 retained -> > $1 market value createdBasic earnings-growth PEG (dividends excluded)✗Lynch< 1.0 (ideally < 0.5)3-5 Year EPS CAGR✗Lynch15-30% (Fast Grower); > 0% to passROE73.5%✓Lynch> 15%EBIT / Enterprise Value10.1%✓Greenblatt> 10%Earnings Yield + ROC AssessmentEY=10.1%, ROC=30.8%✓GreenblattBoth EY > 10% and ROC > 25%Net Income / Total Assets8.04%✓PiotroskiROA > 0ROA Change YoY5.37% -> 8.04% (delta: +2.67%)✓PiotroskiCurrent ROA > Prior ROA(CFO / Total Assets) vs ROACFO/Assets=22.42%, ROA=8.04%✓PiotroskiCFO/Assets > ROAGross Margin Change YoY✗PiotroskiImproved YoYPre-Tax Income / Revenue49.9%✓Dreman>= 8%Net Income / Shareholders' Equity73.5%✓Dreman> 12%Margin of SafetyP/B=11.3x✗PabraiP/B < 1.5 or P/E < 15Return on Equity46.3% (3-yr avg)✓AkreROE > 20% (3-year avg)Discount to Intrinsic Value✗Marks>= 20% below intrinsic valuePositive Net Income Frequency9/9 years positive✓MarksPositive net income in >= 7 of last 10 yearsOperating Income / Revenue62.7%✓Ackman>= 15%Net Income / Shareholders Equity73.5%✓Ackman>= 15%5-Year EPS CAGR✗Templeton> 0% (5-year EPS CAGR)Operating Margin Trend60.6% (2023) -> 62.2% (2025)✓TempletonNon-negative operating-margin trend over 3 yearsRevenue growth vs. gross and operating margin trendrevenue up, operating margin 60.6% -> 62.2%✓SleepRevenue rising; gross margin flat or falling; operating margin holdingGross profit / total assets✗AsnessTop 30% of eligible cross-sectionNet income / positive book equity+73.46%; #128/5226 (top 2.4%)✓AsnessTop 30% of eligible cross-sectionNegative 5-year standard deviation of ROA-0.0240; #1653/5884 (top 28.1%)✓AsnessTop 30% of eligible cross-section3-5 Year Diluted EPS CAGR✗Neff7%-20% annualizedPositive Diluted-EPS Years✗Schloss>= 70% positive over 5-10 observed years (app rule) - Verdicts42% pass✓ 5✗ 7▾
Split decision: 7 FAIL · 5 NEUTRAL · 2 PASS · 2 BUY
Overall verdict✗GrahamFAIL (1/9)✓BuffettPASS (4/9)✗LynchFAIL (3/7)✓GreenblattRank #402•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (4/11)✓MungerPASS (2/4)•PabraiNEUTRAL (2/3)•AkreNEUTRAL (4/6)✗MarksFAIL (2/5)✓AckmanBUY (7/9)✗TempletonFAIL (3/8)✓SleepBUY (5/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
Business & financials
Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.
Company Profile
Financial Snapshot
Shareholder Return
Fiscal 2025
Retired 4.7% of shares last year, 8.2% over two.
- Buybacks
- $400.0M
- Dividends
- —
Company Financials
Latest TTM and quarters alongside annual years
TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.
The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.
| Metric | TTM · 2026-09-30 2025-10-01 – 2026-09-30 Sources · derived quarter valuesDerived from cumulative filings: revenue, net income, operating income, ebit, pre tax income, operating cash flow, capex, buybacks. | Q3 FY 2026 2026-07-01 – 2026-09-30 Sources · derived quarter valuesDerived from cumulative filings: operating cash flow, capex, buybacks. | Q2 FY 2026 2026-04-01 – 2026-06-30 Sources · derived quarter valuesDerived from cumulative filings: operating cash flow, capex, buybacks. | Q1 FY 2026 2026-01-01 – 2026-03-31 Sources | FY 2025Sources
| FY 2024Sources
| FY 2023Sources
| FY 2022Sources
| FY 2021Sources
|
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.4Bcurrent | -- | -- | -- | $7.2Best. | $8.0Best. | $6.4Best. | $5.7Best. | $5.4Best. |
| Revenue | $1.6B↓1% | $410.1M↓3% | $399.0M↓4% | $390.1M↑2% | $1.6B↑8% | $1.5B↑11% | $1.3B↑6% | $1.3B↑6% | $1.2B |
| Operating Income | $1.0B↑1% | $262.4M↑1% | $253.2M↓3% | $238.1M | $1.0B↑10% | $919.0M↑12% | $816.9M↑3% | $791.2M↑9% | $727.2M |
| Net Income | $376.7M↑14% | $99.4M↑2% | $96.4M↑7% | $87.6M↑22% | $352.9M↑58% | $223.1M↑88% | $118.6M↑41% | $83.9M↑81% | $46.4M |
| EPS (Diluted) | -- | -- | -- | -- | -- | -- | -- | -- | -- |
| Gross Margin | — | — | — | — | — | — | — | — | — |
| Operating Margin | 62.7%↑1% | 64.0%↑4% | 63.5%↑1% | 61.0%↓2% | 62.2%↑1% | 61.5%↑1% | 60.6%↓2% | 62.0%↑3% | 60.4% |
| ROE | 73.5%↑27% | — | — | — | 62.1%↑48% | 42.0%↑21% | 34.9%↑120% | 15.9%↑157% | 6.2% |
| Total Debt | $3.6B↓5% | $3.6B↓5% | $3.7B↓1% | $3.8B↑6% | $3.8B↑9% | $3.5B↑8% | $3.2B↑11% | $2.9B↑13% | $2.6B |
| Shareholders' Equity | $512.8M↓10% | $512.8M↓10% | $514.6M↓19% | $518.0M↓14% | $568.3M↑7% | $530.7M↑56% | $340.2M↓36% | $529.0M↓30% | $753.1M |
| Current Ratio | 0.25↓67% | 0.25↓67% | 0.77↑9% | 0.92↑13% | 0.85↑24% | 0.68↑5% | 0.65↓22% | 0.83↑7% | 0.78 |
| Debt / Equity | 7.02↑6% | 7.02↑6% | 7.15↑22% | 7.28↑23% | 6.64↑1% | 6.54↓31% | 9.44↑73% | 5.45↑60% | 3.40 |
| Operating Cash Flow | $1.0B↑5% | $267.9M↑3% | $278.6M↑1% | $253.3M↑25% | $983.8M↑5% | $940.3M↑9% | $866.4M↑1% | $861.1M↑8% | $795.5M |
| Free Cash Flow | $901.1M↑26% | $242.2M↑35% | $255.5M↑20% | $224.5M↑43% | $728.2M↑15% | $634.2M↓1% | $642.9M↑3% | $622.9M↓1% | $632.3M |
Score history
Historical Score Timeline
Industry peers
Industry Peers
Similar companies in Petroleum and Natural Gas
HESM vs Peers — Financial Grading
| Company | Market Cap | Price | Revenue | Net Income | ROE | D/E | Op. Margin | Curr. Ratio | Graham | Buffett | Lynch | Greenblatt | Piotroski | Dreman |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TotalEnergies SETTE | $199.0B | $90.74 | $201.2B | $13.1B | 11.4% | 0.49 | — | 0.97 | 4/9 | 4/9 | 1/7 | 0/3 | F-Score 4 | 6/11 |
| CONOCOPHILLIPSCOP | $168.2B | $142.28 | $58.9B | $8.0B | 12.4% | 0.36 | — | 1.30 | 2/9 | 3/9 | 3/7 | 0/3 | F-Score 7 | 6/11 |
| BP PLCBP | $117.7B | $45.70 | $192.5B | $55.0M | 0.1% | 1.09 | 6.6% | 1.26 | 1/9 | 3/9 | 1/7 | 0/3 | F-Score 5 | 2/11 |
| SUNCOR ENERGY INCSU | $80.5B | $69.92 | $38.2B | $4.3B | 13.1% | 0.22 | — | 1.39 | 2/9 | 2/9 | 2/7 | 0/3 | F-Score 4 | 6/11 |
| CENOVUS ENERGY INC.CVE | $52.6B | $29.08 | $36.3B | $2.9B | 12.4% | 0.35 | — | 1.57 | 1/9 | 1/9 | 3/7 | 0/3 | F-Score 5 | 5/11 |
| WOODSIDE ENERGY GROUP LTDWDS | $40.1B | $21.08 | $13.0B | $2.7B | 7.6% | 0.33 | 30.0% | 1.59 | 3/9 | 4/9 | 0/7 | 0/3 | F-Score 4 | 7/11 |
| EXPAND ENERGY CorpEXE | $20.4B | $88.53 | $12.1B | $1.8B | 9.8% | 0.27 | 20.4% | 1.01 | 2/9 | 5/9 | 3/7 | 1/3 | F-Score 7 | 7/11 |
| YPF SOCIEDAD ANONIMAYPF | $14.9B | $37.90 | $18.4B | $826.0M | -7.6% | 0.98 | 9.4% | 0.87 | 2/9 | 1/9 | 1/7 | 0/3 | F-Score 4 | 3/11 |