62.18% operating margin is above average.
Revenue grew 8.4%, steady but not accelerating.
Net debt of $3.77B represents 5.2x FCF, leverage limits flexibility.
17.5x earnings, 4.8x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.61B
▲ +8.4% YoY
Net Income (TTM)
$196M
▲ +58.2% YoY
Op. Margin
62.06%
▲ +0.7pp YoY
ROIC
—
Cash Flow & Balance Sheet
FCF (TTM)
$838M
▲ +14.8% YoY
Op. Cash Flow (TTM)
$1.04B
▲ +4.6% YoY
Net Debt
$3.67B
Cash & Equiv.
$5M
5Y CAGR: +8.2%
5Y CAGR: +16.4%
Continue Research
SourceComputed from the 10-Q filed 31 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 26 Sept 2026. How this is calculated.
Price from market data, last close as of 21 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Hess Midstream LP (HESM) overvalued?
At a P/E of 17.5 and a price-to-free-cash-flow of 4.8, Hess Midstream LP (HESM) trades below a two-stage DCF intrinsic value of about $113.72 per share, so at $31.07 the stock looks undervalued (266.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Hess Midstream LP scores 56/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Hess Midstream LP's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $113.72 per share for HESM, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $85.29. At today's $31.07, that puts the stock about 266.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Hess Midstream LP a high-quality business?+
Hess Midstream LP scores 56 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 62.1% operating margin. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is Hess Midstream LP a good stock to buy right now?+
That depends on valuation and quality together, not either alone. HESM currently trades below its estimated intrinsic value and scores 56/100 on quality (mixed). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Crude Petroleum & Natural Gas
Spot a number that looks wrong? Check it in HESM's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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