HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
TSX-V:HME - TSX Venture Exchange - CA4236301020 - Common Stock - Currency: CAD
Taking everything into account, HME scores 7 out of 10 in our fundamental rating. HME was compared to 219 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes HME very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year HME was profitable.
HME had a positive operating cash flow in the past year.
HME had positive earnings in 4 of the past 5 years.
In the past 5 years HME always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.56%, HME belongs to the best of the industry, outperforming 98.64% of the companies in the same industry.
The Return On Equity of HME (40.32%) is better than 99.09% of its industry peers.
HME has a better Return On Invested Capital (31.50%) than 99.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HME is significantly above the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.56% | ||
| ROE | 40.32% | ||
| ROIC | 31.5% |
ROA(3y)20.93%
ROA(5y)12.92%
ROE(3y)34.22%
ROE(5y)21.9%
ROIC(3y)35.02%
ROIC(5y)25.02%
1.3 Margins
HME has a better Profit Margin (30.04%) than 90.95% of its industry peers.
The Operating Margin of HME (44.06%) is better than 96.38% of its industry peers.
HME's Operating Margin has improved in the last couple of years.
The Gross Margin of HME (60.52%) is better than 75.11% of its industry peers.
HME's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.06% | ||
| PM (TTM) | 30.04% | ||
| GM | 60.52% |
OM growth 3Y27.93%
OM growth 5Y38.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y3.76%
2. Health
2.1 Basic Checks
HME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
HME has an Altman-Z score of 5.09. This indicates that HME is financially healthy and has little risk of bankruptcy at the moment.
HME's Altman-Z score of 5.09 is amongst the best of the industry. HME outperforms 89.14% of its industry peers.
The Debt to FCF ratio of HME is 0.15, which is an excellent value as it means it would take HME, only 0.15 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.15, HME belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
HME has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
HME has a Debt to Equity ratio of 0.04. This is in the better half of the industry: HME outperforms 74.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 5.09 |
ROIC/WACC3.95
WACC7.97%
2.3 Liquidity
HME has a Current Ratio of 2.15. This indicates that HME is financially healthy and has no problem in meeting its short term obligations.
HME has a better Current ratio (2.15) than 82.35% of its industry peers.
HME has a Quick Ratio of 2.15. This indicates that HME is financially healthy and has no problem in meeting its short term obligations.
HME's Quick ratio of 2.15 is amongst the best of the industry. HME outperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.00% over the past year.
The Revenue has grown by 21.30% in the past year. This is a very strong growth!
HME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 36.61% yearly.
EPS 1Y (TTM)10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%28.57%
Revenue 1Y (TTM)21.3%
Revenue growth 3Y65.42%
Revenue growth 5Y36.61%
Sales Q2Q%9.58%
3.2 Future
The Earnings Per Share is expected to decrease by -8.66% on average over the next years.
The Revenue is expected to decrease by -3.16% on average over the next years.
EPS Next Y30.73%
EPS Next 2Y16.91%
EPS Next 3Y5.92%
EPS Next 5Y-8.66%
Revenue Next Year13.9%
Revenue Next 2Y9.62%
Revenue Next 3Y2.69%
Revenue Next 5Y-3.16%
3.3 Evolution
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
With a Price/Earnings ratio of 5.36, the valuation of HME can be described as very cheap.
90.05% of the companies in the same industry are more expensive than HME, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HME is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.98, 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 87.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HME to the average of the S&P500 Index (22.10), we can say HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 4.98 |
4.2 Price Multiples
90.05% of the companies in the same industry are more expensive than HME, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HME indicates a rather cheap valuation: HME is cheaper than 88.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.35 | ||
| EV/EBITDA | 3.02 |
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.
HME has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y16.91%
EPS Next 3Y5.92%
5. Dividend
5.1 Amount
HME has a Yearly Dividend Yield of 5.81%, which is a nice return.
Compared to an average industry Dividend Yield of 6.94, HME pays a better dividend. On top of this HME pays more dividend than 81.45% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, HME pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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
HME pays out 53.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.21%
EPS Next 2Y16.91%
EPS Next 3Y5.92%
TSX-V:HME (3/7/2025, 7:00:00 PM)
1.77
+0.05 (+2.91%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners0.71%
Inst Owner ChangeN/A
Ins Owners16.33%
Ins Owner ChangeN/A
Market Cap171.88M
Analysts84
Price Target2.78 (57.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend0.13
Dividend Growth(5Y)N/A
DP53.21%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.91%
Min EPS beat(2)-8.02%
Max EPS beat(2)2.2%
EPS beat(4)2
Avg EPS beat(4)-4.26%
Min EPS beat(4)-24.49%
Max EPS beat(4)13.27%
EPS beat(8)4
Avg EPS beat(8)2.76%
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)1
Avg Revenue beat(2)0.9%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)4.67%
Revenue beat(4)2
Avg Revenue beat(4)-2.2%
Min Revenue beat(4)-12.84%
Max Revenue beat(4)4.67%
Revenue beat(8)4
Avg Revenue beat(8)-2.45%
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)26.74%
PT rev (3m)26.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)1.54%
EPS NY rev (3m)-1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.14%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 4.98 | ||
| P/S | 1.74 | ||
| P/FCF | 6.35 | ||
| P/OCF | 3.6 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 3.02 |
EPS(TTM)0.33
EY18.64%
EPS(NY)0.36
Fwd EY20.08%
FCF(TTM)0.28
FCFY15.75%
OCF(TTM)0.49
OCFY27.78%
SpS1.02
BVpS0.76
TBVpS0.76
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.56% | ||
| ROE | 40.32% | ||
| ROCE | 43.04% | ||
| ROIC | 31.5% | ||
| ROICexc | 36.44% | ||
| ROICexgc | 36.44% | ||
| OM | 44.06% | ||
| PM (TTM) | 30.04% | ||
| GM | 60.52% | ||
| FCFM | 27.35% |
ROA(3y)20.93%
ROA(5y)12.92%
ROE(3y)34.22%
ROE(5y)21.9%
ROIC(3y)35.02%
ROIC(5y)25.02%
ROICexc(3y)36.19%
ROICexc(5y)25.8%
ROICexgc(3y)36.19%
ROICexgc(5y)25.8%
ROCE(3y)47.84%
ROCE(5y)34.19%
ROICexcg growth 3Y86.82%
ROICexcg growth 5Y79.49%
ROICexc growth 3Y86.82%
ROICexc growth 5Y79.49%
OM growth 3Y27.93%
OM growth 5Y38.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y3.76%
F-Score9
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 203.82% | ||
| Cap/Sales | 20.89% | ||
| Interest Coverage | 109.04 | ||
| Cash Conversion | 88.83% | ||
| Profit Quality | 91.04% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z | 5.09 |
F-Score9
WACC7.97%
ROIC/WACC3.95
Cap/Depr(3y)228.65%
Cap/Depr(5y)182.92%
Cap/Sales(3y)22.22%
Cap/Sales(5y)22.09%
Profit Quality(3y)115.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%28.57%
EPS Next Y30.73%
EPS Next 2Y16.91%
EPS Next 3Y5.92%
EPS Next 5Y-8.66%
Revenue 1Y (TTM)21.3%
Revenue growth 3Y65.42%
Revenue growth 5Y36.61%
Sales Q2Q%9.58%
Revenue Next Year13.9%
Revenue Next 2Y9.62%
Revenue Next 3Y2.69%
Revenue Next 5Y-3.16%
EBIT growth 1Y29.69%
EBIT growth 3Y111.62%
EBIT growth 5Y89.38%
EBIT Next Year38.04%
EBIT Next 3Y3.16%
EBIT Next 5Y-3.17%
FCF growth 1Y16.91%
FCF growth 3Y52.58%
FCF growth 5YN/A
OCF growth 1Y16.34%
OCF growth 3Y67.65%
OCF growth 5Y81.76%