Hess Midstream LPHESM +0.98%67 Return-on-Tangible-Equity is 64.51% as of Mar. 2026, which is 159% above its 10-year median of 24.90. GuruFocus rates HESM with a GF Score™ of 67/100 and a GF Value™ of $24.41 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 944 Oil & Gas companies, Hess Midstream LP ranks better than 94.07% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Hess Midstream LP's annualized net income for the quarter that ended in Mar. 2026 was $350 Mil. Hess Midstream LP's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $543 Mil. Therefore, Hess Midstream LP's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 64.51%.
The historical rank and industry rank for Hess Midstream LP's Return-on-Tangible-Equity or its related term are showing as below:
HESM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.99 Med: 24.9 Max: 64.22
Current: 63.71
During the past 13 years, Hess Midstream LP's highest Return-on-Tangible-Equity was 64.22%. The lowest was 2.99%. And the median was 24.90%.
HESM's Return-on-Tangible-Equity is ranked better than 94.07% of 944
companies
in the Oil & Gas industry
Industry Median: 6.73
vs HESM: 63.71
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Hess Midstream LP Return-on-Tangible-Equity Related Terms
Hess Midstream LP Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hess Midstream LP's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HESM vs PAGP, GLNG, INSW: Return-on-Tangible-Equity Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hess Midstream LP Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 64.51% mean?
Hess Midstream LP (HESM) has a Return-on-Tangible-Equity of 64.51% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hess Midstream LP and its competitors. This is 159% above median its historical median of 24.90. Over the past decade, Hess Midstream LP's Return-on-Tangible-Equity has ranged from 2.99 to 64.22. According to the industry distribution chart, Hess Midstream LP ranks #56 out of 944 companies in the Oil & Gas industry, placing it in the top 5.9%.
Is Hess Midstream LP's Return-on-Tangible-Equity too high?
Hess Midstream LP's current Return-on-Tangible-Equity of 64.51% is 159% above median its 10-year median of 24.90. Over the past 10 years, this metric has ranged from a low of 2.99 to a high of 64.22. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Hess Midstream LP's value of 64.51% is 858.5% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #56 out of 944 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Hess Midstream LP has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hess Midstream LP's Return-on-Tangible-Equity compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #56 out of 944 companies for Return-on-Tangible-Equity. This places Hess Midstream LP in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Hess Midstream LP's value of 64.51% is 858.5% above this benchmark. Historically, Hess Midstream LP's own Return-on-Tangible-Equity has ranged from 2.99 to 64.22 over the past decade. While the company's 10-year median is 24.90 vs. the industry median of 6.73, Hess Midstream LP has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 944 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current Return-on-Tangible-Equity of 64.51% is 858.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hess Midstream LP and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current Return-on-Tangible-Equity is 64.51%, which is 159% above median its own 10-year median of 24.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hess Midstream LP stock overvalued right now?
Based on GuruFocus' analysis, Hess Midstream LP (HESM) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.41, compared to a current price of $38.16 — trading 56.3% above its estimated fair value. The current Return-on-Tangible-Equity is 64.51%, which is 159% above median its 10-year median of 24.90 and 858.5% above the Oil & Gas industry median of 6.73. Hess Midstream LP's overall GF Score™ is 67/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current Return-on-Tangible-Equity is 64.51% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hess Midstream LP (HESM) Overvalued in 2026?
Based on GuruFocus' analysis, Hess Midstream LP stock appears to be overvalued.
The current stock price of $38.16 is trading 56.3% above its estimated GF Value™ of $24.41.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
Return-on-Tangible-Equity: 64.51% (159% above median its 10-year median of 24.90)
GF Value™: $24.41 vs. price of $38.16 (56.3% above fair value)
Industry Position: 858.5% above the Oil & Gas median (#56 of 944)
No single metric tells the full story. See the HESM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hess Midstream LP is a fee-based, growth-oriented limited partnership that owns, operates, develops, and acquires a portfolio of midstream assets. The company provides fee-based services to Chevron Corporation and generates all of its revenue by charging fees for gathering, compressing, and processing natural gas, fractionating NGLs, gathering, terminaling, loading, and transporting crude oil and NGLs, storing and terminaling propane, and gathering and disposing of produced water. It operates through gathering, processing, and storage, and terminaling and export segments, with the gathering segment contributing the maximum share of revenue and comprising natural gas gathering and compression, as well as crude oil gathering and produced water gathering and disposal assets.
67GF Score
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