HEADWATER EXPLORATION INC (HWX.CA) Fundamental Analysis & Valuation

TSX:HWX • CA4220961078

Current stock price

12.79 CAD
-0.16 (-1.24%)
Last:

This HWX.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. HWX.CA Profitability Analysis

1.1 Basic Checks

  • In the past year HWX was profitable.
  • HWX had a positive operating cash flow in the past year.
  • In the past 5 years HWX has always been profitable.
  • HWX had a positive operating cash flow in each of the past 5 years.
HWX.CA Yearly Net Income VS EBIT VS OCF VS FCFHWX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M

1.2 Ratios

  • The Return On Assets of HWX (15.40%) is better than 96.15% of its industry peers.
  • The Return On Equity of HWX (20.48%) is better than 96.15% of its industry peers.
  • HWX's Return On Invested Capital of 18.32% is amongst the best of the industry. HWX outperforms 98.08% of its industry peers.
Industry RankSector Rank
ROA 15.4%
ROE 20.48%
ROIC 18.32%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
HWX.CA Yearly ROA, ROE, ROICHWX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • HWX has a Profit Margin of 29.79%. This is amongst the best in the industry. HWX outperforms 94.71% of its industry peers.
  • In the last couple of years the Profit Margin of HWX has declined.
  • With an excellent Operating Margin value of 40.52%, HWX belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
  • HWX's Operating Margin has declined in the last couple of years.
  • HWX's Gross Margin of 88.07% is amongst the best of the industry. HWX outperforms 98.08% of its industry peers.
  • In the last couple of years the Gross Margin of HWX has grown nicely.
Industry RankSector Rank
OM 40.52%
PM (TTM) 29.79%
GM 88.07%
OM growth 3Y-9.94%
OM growth 5YN/A
PM growth 3Y-11.81%
PM growth 5Y-17.05%
GM growth 3Y-1.64%
GM growth 5Y5.55%
HWX.CA Yearly Profit, Operating, Gross MarginsHWX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 200 -200

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7

2. HWX.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HWX is creating value.
  • HWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
HWX.CA Yearly Shares OutstandingHWX.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
HWX.CA Yearly Total Debt VS Total AssetsHWX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.2 Solvency

  • HWX has an Altman-Z score of 8.98. This indicates that HWX is financially healthy and has little risk of bankruptcy at the moment.
  • HWX has a better Altman-Z score (8.98) than 88.94% of its industry peers.
  • HWX has a debt to FCF ratio of 0.20. This is a very positive value and a sign of high solvency as it would only need 0.20 years to pay back of all of its debts.
  • The Debt to FCF ratio of HWX (0.20) is better than 96.15% of its industry peers.
  • A Debt/Equity ratio of 0.01 indicates that HWX is not too dependend on debt financing.
  • The Debt to Equity ratio of HWX (0.01) is better than 78.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.2
Altman-Z 8.98
ROIC/WACC2.31
WACC7.93%
HWX.CA Yearly LT Debt VS Equity VS FCFHWX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.23 indicates that HWX should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.23, HWX is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
  • HWX has a Quick Ratio of 1.23. This is a normal value and indicates that HWX is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.23, HWX is in the better half of the industry, outperforming 70.19% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
HWX.CA Yearly Current Assets VS Current LiabilitesHWX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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4

3. HWX.CA Growth Analysis

3.1 Past

  • HWX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.94%.
  • HWX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.44% yearly.
  • The Revenue has been growing slightly by 0.55% in the past year.
  • Measured over the past years, HWX shows a very strong growth in Revenue. The Revenue has been growing by 125.38% on average per year.
EPS 1Y (TTM)-18.94%
EPS 3Y-3.01%
EPS 5Y66.44%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y11.28%
Revenue growth 5Y125.38%
Sales Q2Q%7.26%

3.2 Future

  • The Earnings Per Share is expected to decrease by -4.74% on average over the next years.
  • Based on estimates for the next years, HWX will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y-21.88%
EPS Next 2Y-4.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.86%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A

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.
HWX.CA Yearly Revenue VS EstimatesHWX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
HWX.CA Yearly EPS VS EstimatesHWX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 0.4 0.6 0.8

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4

4. HWX.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • HWX is valuated rather expensively with a Price/Earnings ratio of 19.98.
  • 65.87% of the companies in the same industry are more expensive than HWX, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 25.23. HWX is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 25.58, HWX can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, HWX is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.42, HWX is valued at the same level.
Industry RankSector Rank
PE 19.98
Fwd PE 25.58
HWX.CA Price Earnings VS Forward Price EarningsHWX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, HWX is valued a bit cheaper than 68.75% of the companies in the same industry.
  • 60.58% of the companies in the same industry are more expensive than HWX, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 44.17
EV/EBITDA 8.81
HWX.CA Per share dataHWX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

  • HWX has a very decent profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as HWX's earnings are expected to decrease with -4.74% in the coming years.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y-4.74%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. HWX.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.40%, HWX has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 4.47, HWX pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, HWX pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.4%

5.2 History

  • HWX has been paying a dividend for over 5 years, so it has already some track record.
  • The dividend of HWX decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
HWX.CA Yearly Dividends per shareHWX.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • 66.81% of the earnings are spent on dividend by HWX. This is not a sustainable payout ratio.
DP66.81%
EPS Next 2Y-4.74%
EPS Next 3YN/A
HWX.CA Yearly Income VS Free CF VS DividendHWX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M
HWX.CA Dividend Payout.HWX.CA Dividend Payout, showing the Payout Ratio.HWX.CA Dividend Payout.PayoutRetained Earnings

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HWX.CA Fundamentals: All Metrics, Ratios and Statistics

HEADWATER EXPLORATION INC

TSX:HWX (3/20/2026, 7:00:00 PM)

12.79

-0.16 (-1.24%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)03-05
Earnings (Next)04-29
Inst Owners38.14%
Inst Owner ChangeN/A
Ins Owners5.56%
Ins Owner ChangeN/A
Market Cap3.04B
Revenue(TTM)514.29M
Net Income(TTM)153.21M
Analysts75.38
Price Target10.99 (-14.07%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.4%
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP66.81%
Div Incr Years0
Div Non Decr Years2
Ex-Date03-31
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.26%
Min EPS beat(2)-8.61%
Max EPS beat(2)6.08%
EPS beat(4)1
Avg EPS beat(4)-1.13%
Min EPS beat(4)-8.61%
Max EPS beat(4)6.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)-2.83%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)1.82%
Revenue beat(4)2
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-13.15%
Max Revenue beat(4)3.84%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)1.04%
PT rev (3m)9.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-31.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.2%
Revenue NY rev (3m)3.09%
Valuation
Industry RankSector Rank
PE 19.98
Fwd PE 25.58
P/S 5.91
P/FCF 44.17
P/OCF 10.23
P/B 4.06
P/tB 4.06
EV/EBITDA 8.81
EPS(TTM)0.64
EY5%
EPS(NY)0.5
Fwd EY3.91%
FCF(TTM)0.29
FCFY2.26%
OCF(TTM)1.25
OCFY9.77%
SpS2.16
BVpS3.15
TBVpS3.15
PEG (NY)N/A
PEG (5Y)0.3
Graham Number6.73
Profitability
Industry RankSector Rank
ROA 15.4%
ROE 20.48%
ROCE 24.03%
ROIC 18.32%
ROICexc 20.7%
ROICexgc 20.7%
OM 40.52%
PM (TTM) 29.79%
GM 88.07%
FCFM 13.39%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.94%
OM growth 5YN/A
PM growth 3Y-11.81%
PM growth 5Y-17.05%
GM growth 3Y-1.64%
GM growth 5Y5.55%
F-Score4
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.01
Debt/FCF 0.2
Debt/EBITDA 0.03
Cap/Depr 179.7%
Cap/Sales 44.39%
Interest Coverage 683.23
Cash Conversion 88.59%
Profit Quality 44.94%
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 8.98
F-Score4
WACC7.93%
ROIC/WACC2.31
Cap/Depr(3y)185.96%
Cap/Depr(5y)237.53%
Cap/Sales(3y)48.12%
Cap/Sales(5y)59.23%
Profit Quality(3y)45.13%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.94%
EPS 3Y-3.01%
EPS 5Y66.44%
EPS Q2Q%-42.86%
EPS Next Y-21.88%
EPS Next 2Y-4.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.55%
Revenue growth 3Y11.28%
Revenue growth 5Y125.38%
Sales Q2Q%7.26%
Revenue Next Year-2.86%
Revenue Next 2Y2.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.53%
EBIT growth 3Y0.22%
EBIT growth 5YN/A
EBIT Next Year10.62%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.66%
FCF growth 3Y25.3%
FCF growth 5YN/A
OCF growth 1Y-6.19%
OCF growth 3Y1.53%
OCF growth 5Y319.03%

HEADWATER EXPLORATION INC / HWX.CA Fundamental Analysis FAQ

What is the fundamental rating for HWX stock?

ChartMill assigns a fundamental rating of 6 / 10 to HWX.CA.


What is the valuation status of HEADWATER EXPLORATION INC (HWX.CA) stock?

ChartMill assigns a valuation rating of 4 / 10 to HEADWATER EXPLORATION INC (HWX.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for HEADWATER EXPLORATION INC?

HEADWATER EXPLORATION INC (HWX.CA) has a profitability rating of 7 / 10.


What is the earnings growth outlook for HEADWATER EXPLORATION INC?

The Earnings per Share (EPS) of HEADWATER EXPLORATION INC (HWX.CA) is expected to decline by -21.88% in the next year.


Can you provide the dividend sustainability for HWX stock?

The dividend rating of HEADWATER EXPLORATION INC (HWX.CA) is 4 / 10 and the dividend payout ratio is 66.81%.