HEMISPHERE ENERGY CORP (HME.CA) Stock Fundamental Analysis
TSX-V:HME - TSX Venture Exchange - CA4236301020 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to HME. HME was compared to 217 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 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.
In multiple years HME reported negative net income over the last 5 years.
Of the past 5 years HME 4 years had a positive operating cash flow.
1.2 Ratios
HME's Return On Assets of 26.56% is amongst the best of the industry. HME outperforms 98.62% of its industry peers.
HME has a Return On Equity of 40.32%. This is amongst the best in the industry. HME outperforms 99.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.50%, HME belongs to the top of the industry, outperforming 99.54% of the companies in the same industry.
HME had an Average Return On Invested Capital over the past 3 years of 35.02%. This is significantly above the industry average of 7.24%.
| 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's Profit Margin of 30.04% is amongst the best of the industry. HME outperforms 89.86% of its industry peers.
HME has a better Operating Margin (44.06%) than 96.31% of its industry peers.
HME's Operating Margin has improved in the last couple of years.
HME's Gross Margin of 60.52% is fine compared to the rest of the industry. HME outperforms 75.58% of its industry peers.
In the last couple of years the Gross Margin of HME has grown nicely.
| 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.
There is no outstanding debt for HME. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 5.00 indicates that HME is not in any danger for bankruptcy at the moment.
HME has a Altman-Z score of 5.00. This is amongst the best in the industry. HME outperforms 87.56% 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.
HME has a better Debt to FCF ratio (0.15) than 96.77% of its industry peers.
A Debt/Equity ratio of 0.04 indicates that HME is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.04, HME is in the better half of the industry, outperforming 75.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 5 |
ROIC/WACC3.39
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.15 indicates that HME has no problem at all paying its short term obligations.
HME's Current ratio of 2.15 is fine compared to the rest of the industry. HME outperforms 78.80% 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.
The Quick ratio of HME (2.15) is better than 79.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
HME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.92%, which is quite impressive.
EPS 1Y (TTM)26.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.18%
3.2 Future
HME is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.87% yearly.
HME is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.01% yearly.
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
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 5.30 indicates a rather cheap valuation of HME.
92.17% of the companies in the same industry are more expensive than HME, based on the Price/Earnings ratio.
HME is valuated cheaply when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.72, 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 87.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of HME to the average of the S&P500 Index (20.94), we can say HME is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 4.72 |
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 90.32% of the companies listed in the same industry.
HME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HME is cheaper than 91.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 2.92 |
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.
A cheap valuation may be justified as HME's earnings are expected to decrease with -7.94% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
5. Dividend
5.1 Amount
HME has a Yearly Dividend Yield of 5.88%, which is a nice return.
HME's Dividend Yield is rather good when compared to the industry average which is at 6.73. HME pays more dividend than 82.49% of the companies in the same industry.
HME's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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 53.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.21%
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
TSX-V:HME (5/12/2025, 7:00:00 PM)
1.75
+0.03 (+1.74%)
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 Cap169.38M
Analysts84
Price Target2.24 (28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.88% |
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)-19.27%
PT rev (3m)2.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.3 | ||
| Fwd PE | 4.72 | ||
| P/S | 1.71 | ||
| P/FCF | 6.26 | ||
| P/OCF | 3.55 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)0.33
EY18.86%
EPS(NY)0.37
Fwd EY21.19%
FCF(TTM)0.28
FCFY15.99%
OCF(TTM)0.49
OCFY28.19%
SpS1.02
BVpS0.76
TBVpS0.76
PEG (NY)0.43
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 |
F-Score9
WACC9.3%
ROIC/WACC3.39
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)26.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y12.36%
EPS Next 2Y-3.23%
EPS Next 3Y-7.94%
EPS Next 5Y-15.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%4.18%
Revenue Next Year0.42%
Revenue Next 2Y-2.54%
Revenue Next 3Y-4.8%
Revenue Next 5Y-7.01%
EBIT growth 1Y29.69%
EBIT growth 3Y111.62%
EBIT growth 5Y89.38%
EBIT Next Year37.48%
EBIT Next 3Y6.93%
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%