HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:HME - CA4236301020 - Common Stock
1.97 CAD
+0.02 (+1.03%)
We assign a fundamental rating of 7 out of 10 to HME. HME was compared to 201 industry peers in the Oil, Gas & Consumable Fuels industry. HME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HME has a bad growth rate and is valued cheaply. These ratings could make HME a good candidate for value 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
Looking at the Return On Assets, with a value of 24.66%, HME belongs to the top of the industry, outperforming 97.51% of the companies in the same industry.
HME's Return On Equity of 38.33% is amongst the best of the industry. HME outperforms 99.00% of its industry peers.
HME has a better Return On Invested Capital (31.98%) than 100.00% 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 6.51%.
The last Return On Invested Capital (31.98%) for HME is well below the 3 year average (38.31%), which needs to be investigated, but indicates that HME had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.66% | ||
| ROE | 38.33% | ||
| ROIC | 31.98% |
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 30.81%. This is amongst the best in the industry. HME outperforms 95.02% of its industry peers.
In the last couple of years the Profit Margin of HME has grown nicely.
Looking at the Operating Margin, with a value of 42.73%, HME belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.
In the last couple of years the Operating Margin of HME has grown nicely.
Looking at the Gross Margin, with a value of 60.82%, HME is in the better half of the industry, outperforming 78.11% of the companies in the same industry.
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 | 42.73% | ||
| PM (TTM) | 30.81% | ||
| GM | 60.82% |
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.
HME has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HME has been increased compared to 5 years ago.
The debt/assets ratio for HME has been reduced compared to a year ago.
2.2 Solvency
HME has an Altman-Z score of 4.80. This indicates that HME is financially healthy and has little risk of bankruptcy at the moment.
HME's Altman-Z score of 4.80 is amongst the best of the industry. HME outperforms 85.07% of its industry peers.
HME has a debt to FCF ratio of 0.07. This is a very positive value and a sign of high solvency as it would only need 0.07 years to pay back of all of its debts.
The Debt to FCF ratio of HME (0.07) is better than 96.02% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that HME is not too dependend on debt financing.
HME has a better Debt to Equity ratio (0.03) than 75.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 4.8 |
ROIC/WACC4.06
WACC7.87%
2.3 Liquidity
HME has a Current Ratio of 1.41. This is a normal value and indicates that HME is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.41, HME is in the better half of the industry, outperforming 72.14% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that HME should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.41, HME is doing good in the industry, outperforming 74.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
HME shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.09%.
Measured over the past years, HME shows a very strong growth in Earnings Per Share. The EPS has been growing by 80.04% on average per year.
HME shows a decrease in Revenue. In the last year, the revenue decreased by -0.77%.
HME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.97% yearly.
EPS 1Y (TTM)-9.09%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-22.22%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-13.24%
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.
HME is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.01% yearly.
EPS Next Y-14.17%
EPS Next 2Y-9.92%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue Next Year-5.82%
Revenue Next 2Y-3.77%
Revenue Next 3Y-4.28%
Revenue Next 5Y-7.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 6.57.
HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 91.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, HME is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.36, the valuation of HME can be described as very cheap.
HME's Price/Forward Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 84.08% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HME to the average of the S&P500 Index (23.13), we can say HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
HME's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HME is cheaper than 92.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HME is valued cheaply inside the industry as 98.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.27 | ||
| EV/EBITDA | 3.07 |
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-9.92%
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 2.95, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
HME has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
60.59% of the earnings are spent on dividend by HME. This is not a sustainable payout ratio.
DP60.59%
EPS Next 2Y-9.92%
EPS Next 3Y-9.18%
TSX-V:HME (12/31/2025, 7:00:00 PM)
1.97
+0.02 (+1.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.79%
Inst Owner ChangeN/A
Ins Owners15.55%
Ins Owner ChangeN/A
Market Cap186.42M
Revenue(TTM)98.24M
Net Income(TTM)30.27M
Analysts84
Price Target2.47 (25.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP60.59%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.91%
Min EPS beat(2)-2.91%
Max EPS beat(2)-2.91%
EPS beat(4)1
Avg EPS beat(4)-1.48%
Min EPS beat(4)-2.91%
Max EPS beat(4)2.8%
EPS beat(8)3
Avg EPS beat(8)-2.87%
EPS beat(12)5
Avg EPS beat(12)1.35%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.89%
Min Revenue beat(2)-0.21%
Max Revenue beat(2)5.99%
Revenue beat(4)3
Avg Revenue beat(4)2.9%
Min Revenue beat(4)-0.21%
Max Revenue beat(4)5.99%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)7
Avg Revenue beat(12)-0.67%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)6.59%
PT rev (3m)5.43%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-25%
EPS NY rev (1m)-3.51%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-11.07%
Revenue NQ rev (3m)-15.47%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 7.36 | ||
| P/S | 1.9 | ||
| P/FCF | 4.27 | ||
| P/OCF | 3.35 | ||
| P/B | 2.36 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 3.07 |
EPS(TTM)0.3
EY15.23%
EPS(NY)0.27
Fwd EY13.59%
FCF(TTM)0.46
FCFY23.44%
OCF(TTM)0.59
OCFY29.81%
SpS1.04
BVpS0.83
TBVpS0.83
PEG (NY)N/A
PEG (5Y)0.08
Graham Number2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.66% | ||
| ROE | 38.33% | ||
| ROCE | 42.48% | ||
| ROIC | 31.98% | ||
| ROICexc | 43.34% | ||
| ROICexgc | 43.34% | ||
| OM | 42.73% | ||
| PM (TTM) | 30.81% | ||
| GM | 60.82% | ||
| FCFM | 44.47% |
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%
ROICexgc growth 3Y12.92%
ROICexgc 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-Score6
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.07 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 105.19% | ||
| Cap/Sales | 12.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.31% | ||
| Profit Quality | 144.34% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.8 |
F-Score6
WACC7.87%
ROIC/WACC4.06
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)-9.09%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-22.22%
EPS Next Y-14.17%
EPS Next 2Y-9.92%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue 1Y (TTM)-0.77%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-13.24%
Revenue Next Year-5.82%
Revenue Next 2Y-3.77%
Revenue Next 3Y-4.28%
Revenue Next 5Y-7.01%
EBIT growth 1Y-3.75%
EBIT growth 3Y35.09%
EBIT growth 5Y31.88%
EBIT Next Year34.08%
EBIT Next 3Y-0.98%
EBIT Next 5Y-5.77%
FCF growth 1Y130.83%
FCF growth 3Y57.01%
FCF growth 5YN/A
OCF growth 1Y39.86%
OCF growth 3Y36.33%
OCF growth 5Y34.82%
HEMISPHERE ENERGY CORP / HME.CA FAQ
What is the ChartMill fundamental rating of HEMISPHERE ENERGY CORP (HME.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HME.CA.
What is the valuation status for HME stock?
ChartMill assigns a valuation rating of 8 / 10 to HEMISPHERE ENERGY CORP (HME.CA). This can be considered as Undervalued.
Can you provide the profitability details for HEMISPHERE ENERGY CORP?
HEMISPHERE ENERGY CORP (HME.CA) has a profitability rating of 9 / 10.
What is the financial health of HEMISPHERE ENERGY CORP (HME.CA) stock?
The financial health rating of HEMISPHERE ENERGY CORP (HME.CA) is 8 / 10.
Can you provide the dividend sustainability for HME stock?
The dividend rating of HEMISPHERE ENERGY CORP (HME.CA) is 4 / 10 and the dividend payout ratio is 60.59%.