Equitrans Midstream Corporation
Equitrans Midstream Corporation Fundamental Analysis
Equitrans Midstream Corporation (ETRN) shows strong financial fundamentals with a PE ratio of 12.11, profit margin of 31.94%, and ROE of 26.77%. The company generates $1.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.2/100 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 ETRN's fundamental strength across five key dimensions:
Efficiency Score
WeakETRN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentETRN trades at attractive valuation levels.
Growth Score
ModerateETRN shows steady but slowing expansion.
Financial Health Score
WeakETRN carries high financial risk with limited liquidity.
Profitability Score
ExcellentETRN achieves industry-leading margins.
Key Financial Metrics
Is ETRN Expensive or Cheap?
P/E Ratio
ETRN trades at 12.11 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETRN's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Equitrans Midstream Corporation at 3.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.16 times EBITDA. This is generally considered low.
How Well Does ETRN Make Money?
Net Profit Margin
For every $100 in sales, Equitrans Midstream Corporation keeps $31.94 as profit after all expenses.
Operating Margin
Core operations generate 49.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.77 in profit for every $100 of shareholder equity.
ROA
Equitrans Midstream Corporation generates $3.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Equitrans Midstream Corporation generates strong operating cash flow of $1.02B, reflecting robust business health.
Free Cash Flow
Equitrans Midstream Corporation generates strong free cash flow of $633.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.45 in free cash annually.
FCF Yield
ETRN converts 11.60% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.11
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.27
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ETRN Stacks Against Its Sector Peers
| Metric | ETRN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.11 | 20.19 | Better (Cheaper) |
| ROE | 26.77% | 1019.00% | Weak |
| Net Margin | 31.94% | -44017.00% (disorted) | Strong |
| Debt/Equity | 4.40 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.76 | 4.60 | Weak Liquidity |
| ROA | 3.80% | -11655350.00% (disorted) | Weak |
ETRN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Equitrans Midstream Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity