HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
TSX-V:HME - TSX Venture Exchange - CA4236301020 - Common Stock - Currency: CAD
HME gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 207 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! 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
Looking at the Return On Assets, with a value of 29.87%, HME belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
Looking at the Return On Equity, with a value of 44.26%, HME belongs to the top of the industry, outperforming 99.03% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 36.57%, HME belongs to the top of the industry, outperforming 99.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HME is significantly above the industry average of 7.44%.
| 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
With an excellent Profit Margin value of 33.17%, HME belongs to the best of the industry, outperforming 88.41% of the companies in the same industry.
In the last couple of years the Profit Margin of HME has grown nicely.
With an excellent Operating Margin value of 45.23%, HME belongs to the best of the industry, outperforming 96.62% of the companies in the same industry.
In the last couple of years the Operating Margin of HME has grown nicely.
The Gross Margin of HME (60.51%) is better than 76.33% 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 | 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
HME has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 5.47 indicates that HME is not in any danger for bankruptcy at the moment.
HME's Altman-Z score of 5.47 is amongst the best of the industry. HME outperforms 86.96% 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.
The Debt to FCF ratio of HME (0.08) is better than 96.14% 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.
HME has a better Debt to Equity ratio (0.03) than 77.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.47 |
ROIC/WACC4.39
WACC8.33%
2.3 Liquidity
HME has a Current 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.
Looking at the Current ratio, with a value of 1.63, HME is in the better half of the industry, outperforming 77.29% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that HME should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.63, HME is doing good in the industry, outperforming 79.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 29.63% over the past year.
The Earnings Per Share has been growing by 80.04% on average over the past years. This is a very strong growth
Looking at the last year, HME shows a very strong growth in Revenue. The Revenue has grown by 22.57%.
HME shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.97% yearly.
EPS 1Y (TTM)29.63%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%28.57%
Revenue 1Y (TTM)22.57%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%30.43%
3.2 Future
The Earnings Per Share is expected to decrease by -15.87% on average over the next years. This is quite bad
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 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.
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
The Price/Earnings ratio is 5.54, which indicates a rather cheap valuation of HME.
HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 91.30% of the companies in the same industry.
HME is valuated cheaply when we compare the Price/Earnings ratio to 27.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.28, 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 83.57% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HME to the average of the S&P500 Index (36.44), we can say HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HME is valued cheaper than 91.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HME is valued cheaper than 96.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | 2.87 |
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)0.45
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 5.18%, which is a nice return.
Compared to an average industry Dividend Yield of 6.83, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
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 44.40% of its income as dividend. 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 (7/21/2025, 7:00:00 PM)
1.94
-0.01 (-0.51%)
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 Cap186.05M
Analysts84
Price Target2.3 (18.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.18% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP44.4%
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)2
Avg EPS beat(4)-1.48%
Min EPS beat(4)-8.02%
Max EPS beat(4)2.8%
EPS beat(8)3
Avg EPS beat(8)-4.62%
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)2.27%
PT rev (3m)-17.43%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.78%
Revenue NQ rev (3m)-12.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 6.28 | ||
| P/S | 1.75 | ||
| P/FCF | 4.36 | ||
| P/OCF | 3.1 | ||
| P/B | 2.34 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 2.87 |
EPS(TTM)0.35
EY18.04%
EPS(NY)0.31
Fwd EY15.93%
FCF(TTM)0.44
FCFY22.92%
OCF(TTM)0.63
OCFY32.27%
SpS1.11
BVpS0.83
TBVpS0.83
PEG (NY)0.45
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 | 5.47 |
F-Score7
WACC8.33%
ROIC/WACC4.39
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)29.63%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%28.57%
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%