HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
Canada - TSX-V:HME - CA4236301020 - Common Stock
2.11 CAD
+0.03 (+1.44%)
Overall HME gets a fundamental rating of 7 out of 10. We evaluated HME against 220 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HME. 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.
HME had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 26.87%, HME belongs to the best of the industry, outperforming 98.64% of the companies in the same industry.
The Return On Equity of HME (40.34%) is better than 99.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 33.61%, HME belongs to the top 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 6.91%.
The 3 year average ROIC (38.31%) for HME is well above the current ROIC(33.61%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.87% | ||
| ROE | 40.34% | ||
| ROIC | 33.61% |
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 better Profit Margin (31.38%) than 88.18% of its industry peers.
In the last couple of years the Profit Margin of HME has grown nicely.
With an excellent Operating Margin value of 43.33%, HME belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
HME's Operating Margin has improved in the last couple of years.
The Gross Margin of HME (60.30%) is better than 78.18% of its industry peers.
HME's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.33% | ||
| PM (TTM) | 31.38% | ||
| GM | 60.3% |
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
HME has an Altman-Z score of 5.45. This indicates that HME is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.45, HME belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
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.
HME's Debt to FCF ratio of 0.08 is amongst the best of the industry. HME outperforms 95.45% 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 75.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | 5.45 |
ROIC/WACC4.14
WACC8.11%
2.3 Liquidity
A Current Ratio of 1.62 indicates that HME should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, HME is in the better half of the industry, outperforming 75.45% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that HME should not have too much problems paying its short term obligations.
HME has a Quick ratio of 1.62. This is in the better half of the industry: HME outperforms 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.23% over the past year.
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 been growing slightly by 5.28% 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)3.23%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-30%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-15.7%
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.
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 Y-9.48%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue Next Year-2.08%
Revenue Next 2Y-4.7%
Revenue Next 3Y-4.84%
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
With a Price/Earnings ratio of 6.59, the valuation of HME can be described as very cheap.
HME's Price/Earnings ratio is rather cheap when compared to the industry. HME is cheaper than 87.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. HME is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.54, the valuation of HME can be described as reasonable.
Based on the Price/Forward Earnings ratio, HME is valued a bit cheaper than the industry average as 68.64% of the companies are valued more expensively.
HME is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 8.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HME indicates a rather cheap valuation: HME is cheaper than 91.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HME is valued cheaply inside the industry as 96.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 3.27 |
4.3 Compensation for Growth
HME has an outstanding profitability rating, which 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-13.45%
EPS Next 3Y-9.18%
5. Dividend
5.1 Amount
HME has a Yearly Dividend Yield of 4.81%, which is a nice return.
HME's Dividend Yield is a higher than the industry average which is at 6.65.
HME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
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
57.92% of the earnings are spent on dividend by HME. This is a bit on the high side, but may be sustainable.
DP57.92%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
TSX-V:HME (9/19/2025, 7:00:00 PM)
2.11
+0.03 (+1.44%)
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 Cap200.83M
Analysts84
Price Target2.35 (11.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend0.16
Dividend Growth(5Y)N/A
DP57.92%
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)1
Avg EPS beat(4)-2.76%
Min EPS beat(4)-8.02%
Max EPS beat(4)2.8%
EPS beat(8)3
Avg EPS beat(8)-3.68%
EPS beat(12)6
Avg EPS beat(12)3.66%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.19%
Min Revenue beat(2)4.39%
Max Revenue beat(2)5.99%
Revenue beat(4)3
Avg Revenue beat(4)2.23%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)5.99%
Revenue beat(8)6
Avg Revenue beat(8)1.14%
Revenue beat(12)8
Avg Revenue beat(12)-0.62%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.22%
PT rev (3m)4.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.44%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-12.91%
Revenue NY rev (1m)1.41%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 8.54 | ||
| P/S | 1.97 | ||
| P/FCF | 4.96 | ||
| P/OCF | 3.52 | ||
| P/B | 2.54 | ||
| P/tB | 2.54 | ||
| EV/EBITDA | 3.27 |
EPS(TTM)0.32
EY15.17%
EPS(NY)0.25
Fwd EY11.72%
FCF(TTM)0.43
FCFY20.15%
OCF(TTM)0.6
OCFY28.43%
SpS1.07
BVpS0.83
TBVpS0.83
PEG (NY)N/A
PEG (5Y)0.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.87% | ||
| ROE | 40.34% | ||
| ROCE | 44.65% | ||
| ROIC | 33.61% | ||
| ROICexc | 43.9% | ||
| ROICexgc | 43.9% | ||
| OM | 43.33% | ||
| PM (TTM) | 31.38% | ||
| GM | 60.3% | ||
| FCFM | 39.77% |
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-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.08 | ||
| Debt/EBITDA | 0.04 | ||
| Cap/Depr | 148.25% | ||
| Cap/Sales | 16.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.23% | ||
| Profit Quality | 126.75% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 5.45 |
F-Score5
WACC8.11%
ROIC/WACC4.14
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)3.23%
EPS 3Y72.84%
EPS 5Y80.04%
EPS Q2Q%-30%
EPS Next Y-9.48%
EPS Next 2Y-13.45%
EPS Next 3Y-9.18%
EPS Next 5Y-15.87%
Revenue 1Y (TTM)5.28%
Revenue growth 3Y32.32%
Revenue growth 5Y25.97%
Sales Q2Q%-15.7%
Revenue Next Year-2.08%
Revenue Next 2Y-4.7%
Revenue Next 3Y-4.84%
Revenue Next 5Y-7.01%
EBIT growth 1Y-0.96%
EBIT growth 3Y35.09%
EBIT growth 5Y31.88%
EBIT Next Year37.56%
EBIT Next 3Y-0.98%
EBIT Next 5Y-5.77%
FCF growth 1Y70.97%
FCF growth 3Y57.01%
FCF growth 5YN/A
OCF growth 1Y41.47%
OCF growth 3Y36.33%
OCF growth 5Y34.82%