Hess Midstream LPHESM -0.41%67 ROC (Joel Greenblatt) % is 28.77% as of Mar. 2026, which is 34% above its 10-year median of 21.42. GuruFocus rates HESM with a GF Score™ of 67/100 and a GF Value™ of $24.41 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 998 Oil & Gas companies, Hess Midstream LP ranks better than 86.47% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Hess Midstream LP's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 28.77%.
The historical rank and industry rank for Hess Midstream LP's ROC (Joel Greenblatt) % or its related term are showing as below:
HESM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 8.58 Med: 21.42 Max: 30.58
Current: 30.57
During the past 13 years, Hess Midstream LP's highest ROC (Joel Greenblatt) % was 30.58%. The lowest was 8.58%. And the median was 21.42%.
HESM's ROC (Joel Greenblatt) % is ranked better than 86.47% of 998
companies
in the Oil & Gas industry
Industry Median: 8.415
vs HESM: 30.57
Hess Midstream LP's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.70% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Hess Midstream LP ROC (Joel Greenblatt) % Related Terms
Hess Midstream LP ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Hess Midstream LP's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Oil & Gas Midstream subindustry, Hess Midstream LP's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hess Midstream LP's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Hess Midstream LP's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 28.77% mean?
Hess Midstream LP (HESM) has a ROC (Joel Greenblatt) % of 28.77% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hess Midstream LP and its competitors. This is 34% above median its historical median of 21.42. Over the past decade, Hess Midstream LP's ROC (Joel Greenblatt) % has ranged from 8.58 to 30.58. According to the industry distribution chart, Hess Midstream LP ranks #135 out of 998 companies in the Oil & Gas industry, placing it in the top 13.5%.
Is Hess Midstream LP's ROC (Joel Greenblatt) % too high?
Hess Midstream LP's current ROC (Joel Greenblatt) % of 28.77% is 34% above median its 10-year median of 21.42. Over the past 10 years, this metric has ranged from a low of 8.58 to a high of 30.58. The Oil & Gas industry median ROC (Joel Greenblatt) % is 8.42. Hess Midstream LP's value of 28.77% is 241.9% above this industry median. Based on the distribution chart, Hess Midstream LP ranks #135 out of 998 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 ROC (Joel Greenblatt) % compare to PAGP and GLNG?
According to the Oil & Gas industry distribution chart, Hess Midstream LP ranks #135 out of 998 companies for ROC (Joel Greenblatt) %. This places Hess Midstream LP in the top 14% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.42. Hess Midstream LP's value of 28.77% is 241.9% above this benchmark. Historically, Hess Midstream LP's own ROC (Joel Greenblatt) % has ranged from 8.58 to 30.58 over the past decade. While the company's 10-year median is 21.42 vs. the industry median of 8.42, 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 ROC (Joel Greenblatt) % for an Oil & Gas company?
The median ROC (Joel Greenblatt) % among Oil & Gas companies is 8.42, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hess Midstream LP's current ROC (Joel Greenblatt) % of 28.77% is 241.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Hess Midstream LP and its competitors. For the Oil & Gas industry, the median ROC (Joel Greenblatt) % is 8.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hess Midstream LP's current ROC (Joel Greenblatt) % is 28.77%, which is 34% above median its own 10-year median of 21.42. 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 $38.99 — trading 59.7% above its estimated fair value. The current ROC (Joel Greenblatt) % is 28.77%, which is 34% above median its 10-year median of 21.42 and 241.9% above the Oil & Gas industry median of 8.42. Hess Midstream LP's overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Hess Midstream LP (HESM), the current ROC (Joel Greenblatt) % is 28.77% 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 $38.99 is trading 59.7% above its estimated GF Value™ of $24.41.
GuruFocus considers Hess Midstream LP to be Significantly Overvalued.
Key valuation signals for HESM:
ROC (Joel Greenblatt) %: 28.77% (34% above median its 10-year median of 21.42)
GF Value™: $24.41 vs. price of $38.99 (59.7% above fair value)
Industry Position: 241.9% above the Oil & Gas median (#135 of 998)
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
Get the complete analysis for HESM
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HESM has been successfully added to your 
