HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
Canada - TSX-V:HME - CA4236301020 - Common Stock
2.08 CAD
+0.09 (+4.52%)
Overall HME gets a fundamental rating of 7 out of 10. We evaluated HME against 216 industry peers in the Oil, Gas & Consumable Fuels industry. HME has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HME is valued quite cheap, while showing a decent growth score. This is a good combination! This makes HME very considerable for value investing!
1. Profitability
1.1 Basic Checks
HME had positive earnings in the past year.
HME had a positive operating cash flow in the past year.
Of the past 5 years HME 4 years were profitable.
Each year in the past 5 years HME had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HME (26.87%) is better than 98.61% of its industry peers.
HME's Return On Equity of 40.34% is amongst the best of the industry. HME outperforms 99.07% of its industry peers.
HME's Return On Invested Capital of 33.61% is amongst the best of the industry. HME outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HME is significantly above the industry average of 6.93%.
The 3 year average ROIC (38.31%) for HME is well above the current ROIC(33.61%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.87% | ||
| ROE | 40.34% | ||
| ROIC | 33.61% |
ROA(3y)27.91%
ROA(5y)18.35%
ROE(3y)41.42%
ROE(5y)28.93%
ROIC(3y)38.31%
ROIC(5y)29.36%
1.3 Margins
Looking at the Profit Margin, with a value of 31.38%, HME belongs to the top of the industry, outperforming 88.43% of the companies in the same industry.
In the last couple of years the Profit Margin of HME has grown nicely.
HME has a Operating Margin of 43.33%. This is amongst the best in the industry. HME outperforms 96.30% of its industry peers.
In the last couple of years the Operating Margin of HME has grown nicely.
The Gross Margin of HME (60.30%) is better than 78.24% of its industry peers.
In the last couple of years the Gross Margin of HME has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.33% | ||
| PM (TTM) | 31.38% | ||
| GM | 60.3% |
OM growth 3Y2.1%
OM growth 5Y4.69%
PM growth 3Y34.16%
PM growth 5Y45.92%
GM growth 3Y-1.38%
GM growth 5Y-1.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HME is creating value.
The number of shares outstanding for HME has been reduced compared to 1 year ago.
The number of shares outstanding for HME has been increased compared to 5 years ago.
HME has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.40 indicates that HME is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.40, HME belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
The Debt to FCF ratio of HME is 0.08, which is an excellent value as it means it would take HME, only 0.08 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HME (0.08) is better than 95.83% of its industry peers.
HME has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, HME is in the better half of the industry, outperforming 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.4 |
ROIC/WACC4.12
WACC8.16%
2.3 Liquidity
A Current Ratio of 1.62 indicates that HME should not have too much problems paying its short term obligations.
HME has a better Current ratio (1.62) than 75.46% of its industry peers.
HME has a Quick Ratio of 1.62. This is a normal value and indicates that HME is financially healthy and should not expect problems in meeting its short term obligations.
HME has a Quick ratio of 1.62. This is in the better half of the industry: HME outperforms 76.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.23% over the past year.
HME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 80.04% yearly.
HME shows a small growth in Revenue. In the last year, the Revenue has grown by 5.28%.
HME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.97% yearly.
EPS 1Y (TTM)3.23%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-30%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-15.7%
3.2 Future
Based on estimates for the next years, HME will show a very negative growth in Earnings Per Share. The EPS will decrease by -15.87% on average per year.
Based on estimates for the next years, HME will show a decrease in Revenue. The Revenue will decrease by -7.01% on average per year.
EPS Next Y-9.48%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue Next Year-2.08%
Revenue Next 2Y-4.7%
Revenue Next 3Y-4.84%
Revenue Next 5Y-7.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.50, the valuation of HME can be described as very cheap.
HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 89.35% of the companies in the same industry.
HME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of HME can be described as reasonable.
Based on the Price/Forward Earnings ratio, HME is valued a bit cheaper than 68.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HME is valued cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HME is valued cheaper than 96.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.89 | ||
| EV/EBITDA | 3.22 |
4.3 Compensation for Growth
The excellent profitability rating of HME may justify a higher PE ratio.
A cheap valuation may be justified as HME's earnings are expected to decrease with -9.18% in the coming years.
PEG (NY)N/A
PEG (5Y)0.08
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
5. Dividend
5.1 Amount
HME has a Yearly Dividend Yield of 5.08%, which is a nice return.
Compared to an average industry Dividend Yield of 5.90, HME pays a bit more dividend than its industry peers.
HME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
HME has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
HME pays out 57.92% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.92%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
TSX-V:HME (9/18/2025, 7:00:00 PM)
2.08
+0.09 (+4.52%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.8%
Inst Owner ChangeN/A
Ins Owners15.31%
Ins Owner ChangeN/A
Market Cap197.97M
Analysts84
Price Target2.35 (12.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP57.92%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.06%
Min EPS beat(2)-2.91%
Max EPS beat(2)2.8%
EPS beat(4)1
Avg EPS beat(4)-2.76%
Min EPS beat(4)-8.02%
Max EPS beat(4)2.8%
EPS beat(8)3
Avg EPS beat(8)-3.68%
EPS beat(12)6
Avg EPS beat(12)3.66%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.19%
Min Revenue beat(2)4.39%
Max Revenue beat(2)5.99%
Revenue beat(4)3
Avg Revenue beat(4)2.23%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)5.99%
Revenue beat(8)6
Avg Revenue beat(8)1.14%
Revenue beat(12)8
Avg Revenue beat(12)-0.62%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.22%
PT rev (3m)4.55%
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-22.22%
EPS NY rev (1m)-19.44%
EPS NY rev (3m)-19.44%
Revenue NQ rev (1m)-2.91%
Revenue NQ rev (3m)-12.91%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.5 | ||
| Fwd PE | 8.41 | ||
| P/S | 1.95 | ||
| P/FCF | 4.89 | ||
| P/OCF | 3.47 | ||
| P/B | 2.5 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 3.22 |
EPS(TTM)0.32
EY15.38%
EPS(NY)0.25
Fwd EY11.88%
FCF(TTM)0.43
FCFY20.44%
OCF(TTM)0.6
OCFY28.84%
SpS1.07
BVpS0.83
TBVpS0.83
PEG (NY)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.87% | ||
| ROE | 40.34% | ||
| ROCE | 44.65% | ||
| ROIC | 33.61% | ||
| ROICexc | 43.9% | ||
| ROICexgc | 43.9% | ||
| OM | 43.33% | ||
| PM (TTM) | 31.38% | ||
| GM | 60.3% | ||
| FCFM | 39.77% |
ROA(3y)27.91%
ROA(5y)18.35%
ROE(3y)41.42%
ROE(5y)28.93%
ROIC(3y)38.31%
ROIC(5y)29.36%
ROICexc(3y)41.04%
ROICexc(5y)31.02%
ROICexgc(3y)41.04%
ROICexgc(5y)31.02%
ROCE(3y)50.88%
ROCE(5y)39%
ROICexcg growth 3Y12.92%
ROICexcg growth 5Y20.01%
ROICexc growth 3Y12.92%
ROICexc growth 5Y20.01%
OM growth 3Y2.1%
OM growth 5Y4.69%
PM growth 3Y34.16%
PM growth 5Y45.92%
GM growth 3Y-1.38%
GM growth 5Y-1.19%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 148.25% | ||
| Cap/Sales | 16.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.23% | ||
| Profit Quality | 126.75% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 5.4 |
F-Score5
WACC8.16%
ROIC/WACC4.12
Cap/Depr(3y)210.69%
Cap/Depr(5y)187.35%
Cap/Sales(3y)20.24%
Cap/Sales(5y)19.51%
Profit Quality(3y)104.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.23%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-30%
EPS Next Y-9.48%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-15.7%
Revenue Next Year-2.08%
Revenue Next 2Y-4.7%
Revenue Next 3Y-4.84%
Revenue Next 5Y-7.01%
EBIT growth 1Y-0.96%
EBIT growth 3Y35.09%
EBIT growth 5Y31.88%
EBIT Next Year37.56%
EBIT Next 3Y-0.98%
EBIT Next 5Y-5.77%
FCF growth 1Y70.97%
FCF growth 3Y57.01%
FCF growth 5YN/A
OCF growth 1Y41.47%
OCF growth 3Y36.33%
OCF growth 5Y34.82%