Antero Midstream Corporation Common Stock (AM)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on tangible capital and sell at a sensible price. Antero Midstream owns gathering pipelines and water-handling assets in the Appalachian Basin, serving Antero Resources' wells. That asset footprint may provide some local advantage, but the figures do not prove a wide moat. The filed numbers show modest progress: revenue rose from $1.0B in FY2023 to $1.2B in FY2025, and EPS moved from $0.77 to $0.86. In the quarter ended 2026-06-30, revenue was $327.2M and net income $113.5M. FairStock calculates ROE at 19.82%, but ROCE is only 7.61%, and debt-to-equity is 1.86, so leverage is doing some of the work. Free cash flow is $775.6M, a 7.8% FCF yield, and the dividend yield is 4.25%. Still, the balance sheet warrants caution: Altman Z is 1.53 and Piotroski is 6/9. Valuation is the rub. At the 2026-10-13 close of $21.08, the P/E is 25.40 and P/B is 5.14. The Graham Number is $8.75, implying a -140.91% margin of safety, so the price is far above a conservative asset-and-earnings value. FairStock's Lynch category is SLOW GROWER, based on 5.7% profit and 7.3% revenue growth over four years. That is not a wonderful bargain. A patient investor might admire the cash generation and dividend, but the price already assumes steady execution, and the debt leaves little room for error.

In plain English: Antero Midstream runs pipelines and water-handling services for natural gas producers in the Appalachian region. The business is profitable and produces solid cash, but it carries a lot of debt and has grown slowly. At $21.08 on 2026-10-13, the stock looks expensive compared with its earnings, book value, and a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer