HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
Canada • TSX Venture Exchange • TSX-V:HME • CA4236301020
2.08 CAD
+0.01 (+0.48%)
Last: Feb 2, 2026, 07:00 PM
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 gets an excellent profitability rating and is at the same time showing great financial health properties. HME is cheap, but on the other hand it scores bad on growth. With these ratings, HME could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year HME was profitable.
- In the past year HME had a positive cash flow from operations.
- Of the past 5 years HME 4 years were profitable.
- In the past 5 years HME always reported a positive cash flow from operatings.
1.2 Ratios
- HME has a Return On Assets of 24.66%. This is amongst the best in the industry. HME outperforms 97.69% of its industry peers.
- Looking at the Return On Equity, with a value of 38.33%, HME belongs to the top of the industry, outperforming 99.07% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 31.98%, HME belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- HME had an Average Return On Invested Capital over the past 3 years of 38.31%. This is significantly above the industry average of 6.50%.
- 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
- Looking at the Profit Margin, with a value of 30.81%, HME belongs to the top of the industry, outperforming 94.91% of the companies in the same industry.
- In the last couple of years the Profit Margin of HME has grown nicely.
- The Operating Margin of HME (42.73%) is better than 92.59% of its industry peers.
- In the last couple of years the Operating Margin of HME has grown nicely.
- The Gross Margin of HME (60.82%) is better than 79.17% 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 | 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HME is creating value.
- Compared to 1 year ago, HME has less shares outstanding
- 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
- An Altman-Z score of 4.92 indicates that HME is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.92, HME belongs to the best of the industry, outperforming 84.72% of the companies in the same industry.
- The Debt to FCF ratio of HME is 0.07, which is an excellent value as it means it would take HME, only 0.07 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HME (0.07) is better than 95.83% of its industry peers.
- A Debt/Equity ratio of 0.03 indicates that HME is not too dependend on debt financing.
- HME's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. HME outperforms 75.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.07 | ||
| Altman-Z | 4.92 |
ROIC/WACC3.96
WACC8.07%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that HME should not have too much problems paying its short term obligations.
- HME has a better Current ratio (1.41) than 72.22% of its industry peers.
- A Quick Ratio of 1.41 indicates that HME should not have too much problems paying its short term obligations.
- HME's Quick ratio of 1.41 is fine compared to the rest of the industry. HME outperforms 74.07% of its industry peers.
| 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.
- The Revenue has decreased by -0.77% in the past year.
- The Revenue has been growing by 25.97% on average over the past years. This is a very strong growth!
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
- The Earnings Per Share is expected to decrease by -15.87% on average over the next years. This is quite bad
- 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
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- HME is valuated cheaply with a Price/Earnings ratio of 6.93.
- HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 91.67% 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 28.41.
- With a Price/Forward Earnings ratio of 7.77, the valuation of HME can be described as very cheap.
- Based on the Price/Forward Earnings ratio, HME is valued cheaply inside the industry as 82.41% of the companies are valued more expensively.
- HME is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.93 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HME is valued cheaper than 92.59% of the companies in the same industry.
- HME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HME is cheaper than 97.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.51 | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
- The excellent profitability rating of HME may justify a higher PE ratio.
- HME's earnings are expected to decrease with -9.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-9.92%
EPS Next 3Y-9.18%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.76%, HME is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.01, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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%
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%.