Antero Midstream Corporation
Antero Midstream Corporation Fundamental Analysis
Antero Midstream Corporation (AM) shows strong financial fundamentals with a PE ratio of 24.97, profit margin of 32.81%, and ROE of 20.12%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 5.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AM's fundamental strength across five key dimensions:
Efficiency Score
WeakAM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAM trades at attractive valuation levels.
Growth Score
ModerateAM shows steady but slowing expansion.
Financial Health Score
ModerateAM shows balanced financial health with some risks.
Profitability Score
ExcellentAM achieves industry-leading margins.
Key Financial Metrics
Is AM Expensive or Cheap?
P/E Ratio
AM trades at 24.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AM's PEG of -2.04 indicates potential undervaluation.
Price to Book
The market values Antero Midstream Corporation at 5.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.08 times EBITDA. This is generally considered low.
How Well Does AM Make Money?
Net Profit Margin
For every $100 in sales, Antero Midstream Corporation keeps $32.81 as profit after all expenses.
Operating Margin
Core operations generate 58.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.12 in profit for every $100 of shareholder equity.
ROA
Antero Midstream Corporation generates $7.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Antero Midstream Corporation generates strong operating cash flow of $929.28M, reflecting robust business health.
Free Cash Flow
Antero Midstream Corporation generates strong free cash flow of $880.63M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
AM converts 8.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.63
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How AM Stacks Against Its Sector Peers
| Metric | AM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.97 | 20.19 | Worse (Expensive) |
| ROE | 20.12% | 1019.00% | Weak |
| Net Margin | 32.81% | -44017.00% (disorted) | Strong |
| Debt/Equity | 1.63 | -0.65 (disorted) | Distorted |
| Current Ratio | 3.41 | 4.60 | Strong Liquidity |
| ROA | 7.02% | -11655350.00% (disorted) | Weak |
AM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Antero Midstream Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.52%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
203.93%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
24.84%
Industry Style: Cyclical, Value, Commodity
High Growth