HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
TSX-V:HME - TSX Venture Exchange - CA4236301020 - Common Stock - Currency: CAD
Overall HME gets a fundamental rating of 7 out of 10. We evaluated HME against 210 industry peers in the Oil, Gas & Consumable Fuels industry. HME gets an excellent profitability rating and is at the same time showing great financial health properties. HME may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make HME suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
HME had positive earnings in the past year.
In the past year HME had a positive cash flow from operations.
Of the past 5 years HME 4 years were profitable.
HME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HME (29.87%) is better than 98.57% of its industry peers.
HME has a Return On Equity of 44.26%. This is amongst the best in the industry. HME outperforms 99.05% of its industry peers.
HME has a better Return On Invested Capital (36.57%) than 99.52% of its industry peers.
HME had an Average Return On Invested Capital over the past 3 years of 38.31%. This is significantly above the industry average of 7.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.87% | ||
| ROE | 44.26% | ||
| ROIC | 36.57% |
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
HME has a Profit Margin of 33.17%. This is amongst the best in the industry. HME outperforms 88.57% of its industry peers.
In the last couple of years the Profit Margin of HME has grown nicely.
HME has a better Operating Margin (45.23%) than 96.67% of its industry peers.
In the last couple of years the Operating Margin of HME has grown nicely.
HME has a Gross Margin of 60.51%. This is in the better half of the industry: HME outperforms 76.19% of its industry peers.
HME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.23% | ||
| PM (TTM) | 33.17% | ||
| GM | 60.51% |
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.
HME has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HME has an improved debt to assets ratio.
2.2 Solvency
HME has an Altman-Z score of 5.35. This indicates that HME is financially healthy and has little risk of bankruptcy at the moment.
HME's Altman-Z score of 5.35 is amongst the best of the industry. HME outperforms 86.19% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.08, HME belongs to the best of the industry, outperforming 94.76% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that HME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, HME is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.35 |
ROIC/WACC4.62
WACC7.91%
2.3 Liquidity
A Current Ratio of 1.63 indicates that HME should not have too much problems paying its short term obligations.
The Current ratio of HME (1.63) is better than 77.14% of its industry peers.
HME has a Quick Ratio of 1.63. 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 1.63. This is in the better half of the industry: HME outperforms 79.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
HME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.92%, which is quite impressive.
HME shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 80.04% yearly.
The Revenue has grown by 22.57% in the past year. This is a very strong growth!
Measured over the past years, HME shows a very strong growth in Revenue. The Revenue has been growing by 25.97% on average per year.
EPS 1Y (TTM)26.92%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%33.78%
Revenue 1Y (TTM)22.57%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%30.43%
3.2 Future
HME is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.87% yearly.
The Revenue is expected to decrease by -7.01% on average over the next years.
EPS Next Y12.36%
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
EPS Next 5Y-15.87%
Revenue Next Year0.42%
Revenue Next 2Y-2.54%
Revenue Next 3Y-4.8%
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
HME is valuated cheaply with a Price/Earnings ratio of 5.64.
HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 92.38% 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 27.45.
With a Price/Forward Earnings ratio of 6.02, the valuation of HME can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HME indicates a rather cheap valuation: HME is cheaper than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 6.02 |
4.2 Price Multiples
HME's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HME is cheaper than 91.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HME indicates a rather cheap valuation: HME is cheaper than 96.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | 2.73 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 -7.94% in the coming years.
PEG (NY)0.46
PEG (5Y)0.07
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
5. Dividend
5.1 Amount
HME has a Yearly Dividend Yield of 5.38%, which is a nice return.
Compared to an average industry Dividend Yield of 6.19, HME pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, HME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
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
44.40% of the earnings are spent on dividend by HME. This is a bit on the high side, but may be sustainable.
DP44.4%
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
TSX-V:HME (7/3/2025, 7:00:00 PM)
1.86
+0.01 (+0.54%)
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 Cap179.75M
Analysts84
Price Target2.24 (20.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.38% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP44.4%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.9%
Min Revenue beat(2)1.41%
Max Revenue beat(2)4.39%
Revenue beat(4)3
Avg Revenue beat(4)1.9%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)4.67%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-19.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.64 | ||
| Fwd PE | 6.02 | ||
| P/S | 1.69 | ||
| P/FCF | 4.22 | ||
| P/OCF | 2.99 | ||
| P/B | 2.26 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 2.73 |
EPS(TTM)0.33
EY17.74%
EPS(NY)0.31
Fwd EY16.61%
FCF(TTM)0.44
FCFY23.72%
OCF(TTM)0.62
OCFY33.4%
SpS1.1
BVpS0.82
TBVpS0.82
PEG (NY)0.46
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 29.87% | ||
| ROE | 44.26% | ||
| ROCE | 48.57% | ||
| ROIC | 36.57% | ||
| ROICexc | 46.64% | ||
| ROICexgc | 46.64% | ||
| OM | 45.23% | ||
| PM (TTM) | 33.17% | ||
| GM | 60.51% | ||
| FCFM | 40.1% |
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-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 160.29% | ||
| Cap/Sales | 16.38% | ||
| Interest Coverage | 110.55 | ||
| Cash Conversion | 101.86% | ||
| Profit Quality | 120.9% | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 5.35 |
F-Score7
WACC7.91%
ROIC/WACC4.62
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)26.92%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%33.78%
EPS Next Y12.36%
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
EPS Next 5Y-15.87%
Revenue 1Y (TTM)22.57%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%30.43%
Revenue Next Year0.42%
Revenue Next 2Y-2.54%
Revenue Next 3Y-4.8%
Revenue Next 5Y-7.01%
EBIT growth 1Y24.58%
EBIT growth 3Y35.09%
EBIT growth 5Y31.88%
EBIT Next Year37.56%
EBIT Next 3Y-0.98%
EBIT Next 5Y-5.77%
FCF growth 1Y52.4%
FCF growth 3Y57.01%
FCF growth 5YN/A
OCF growth 1Y30.78%
OCF growth 3Y36.33%
OCF growth 5Y34.82%