Hess Midstream LPHESM +1.23%67 ROA % is 8.05% as of Mar. 2026, which is 229% above its 10-year median of 2.45. GuruFocus rates HESM with a GF Score™ of 67/100 and a GF Value™ of $24.43 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,025 Oil & Gas companies, Hess Midstream LP ranks better than 82.83% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hess Midstream LP's annualizedNet Income for the quarter that ended in Mar. 2026 was $350 Mil.
Hess Midstream LP's average Total Assets over the quarter that ended in Mar. 2026 was $4,353 Mil. Therefore, Hess Midstream LP's annualized ROA % for the quarter that ended in Mar. 2026 was 8.05%.
The historical rank and industry rank for Hess Midstream LP's ROA % or its related term are showing as below:
HESM'
s ROA % Range Over the Past 10 Years
Min: 0.72 Med: 2.45 Max: 8.45
Current: 8.45
During the past 13 years, Hess Midstream LP's highest ROA % was 8.45%. The lowest was 0.72%. And the median was 2.45%.
HESM's ROA % is ranked better than 82.83% of 1025
companies
in the Oil & Gas industry
Industry Median: 1.89
vs HESM: 8.45
Hess Midstream LP (NYSE:HESM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Hess Midstream LP ROA % Related Terms
Hess Midstream LP ROA % Historical Data
* Premium members only.
The historical data trend for Hess Midstream LP's ROA % 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.
For the Oil & Gas Midstream subindustry, Hess Midstream LP's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's ROA % distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Hess Midstream LP (HESM) has a ROA % of 8.05% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hess Midstream LP and its competitors. This is 229% above median its historical median of 2.45. Over the past decade, Hess Midstream LP's ROA % has ranged from 0.72 to 8.45. According to the industry distribution chart, Hess Midstream LP ranks #176 out of 1025 companies in the Oil & Gas industry, placing it in the top 17.2%.
Is Hess Midstream LP's ROA % too high?
Hess Midstream LP's current ROA % of 8.05% is 229% above median its 10-year median of 2.45. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 8.45. The Oil & Gas industry median ROA % is 1.89. Hess Midstream LP's value of 8.05% is 325.9% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #176 out of 1025 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 ROA % compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #176 out of 1025 companies for ROA %. This places Hess Midstream LP in the top 17% of its industry — outperforming the majority of peers. The industry median ROA % is 1.89. Hess Midstream LP's value of 8.05% is 325.9% above this benchmark. Historically, Hess Midstream LP's own ROA % has ranged from 0.72 to 8.45 over the past decade. While the company's 10-year median is 2.45 vs. the industry median of 1.89, 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 ROA % for an Oil & Gas company?
The median ROA % among Oil & Gas companies is 1.89, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current ROA % of 8.05% is 325.9% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hess Midstream LP and its competitors. For the Oil & Gas industry, the median ROA % is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current ROA % is 8.05%, which is 229% above median its own 10-year median of 2.45. 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 $24.43, compared to a current price of $37.74 — trading 54.5% above its estimated fair value. The current ROA % is 8.05%, which is 229% above median its 10-year median of 2.45 and 325.9% above the Oil & Gas industry median of 1.89. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current ROA % is 8.05% 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 $37.74 is trading 54.5% above its estimated GF Value™ of $24.43.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
ROA %: 8.05% (229% above median its 10-year median of 2.45)
GF Value™: $24.43 vs. price of $37.74 (54.5% above fair value)
Industry Position: 325.9% above the Oil & Gas median (#176 of 1025)
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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