HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
TSX:HWX • CA4220961078
12.03 CAD
-0.02 (-0.17%)
Last: Feb 24, 2026, 07:00 PM
Overall HWX gets a fundamental rating of 6 out of 10. We evaluated HWX against 212 industry peers in the Oil, Gas & Consumable Fuels industry. HWX gets an excellent profitability rating and is at the same time showing great financial health properties. HWX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year HWX was profitable.
- HWX had a positive operating cash flow in the past year.
- HWX had positive earnings in each of the past 5 years.
- HWX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- HWX has a Return On Assets of 17.16%. This is amongst the best in the industry. HWX outperforms 96.70% of its industry peers.
- HWX has a Return On Equity of 22.97%. This is amongst the best in the industry. HWX outperforms 97.17% of its industry peers.
- HWX's Return On Invested Capital of 20.36% is amongst the best of the industry. HWX outperforms 98.11% of its industry peers.
- HWX had an Average Return On Invested Capital over the past 3 years of 22.43%. This is significantly above the industry average of 6.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.16% | ||
| ROE | 22.97% | ||
| ROIC | 20.36% |
ROA(3y)20.15%
ROA(5y)14.41%
ROE(3y)27.43%
ROE(5y)19.26%
ROIC(3y)22.43%
ROIC(5y)N/A
1.3 Margins
- HWX's Profit Margin of 33.12% is amongst the best of the industry. HWX outperforms 95.28% of its industry peers.
- HWX's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 44.47%, HWX belongs to the best of the industry, outperforming 97.64% of the companies in the same industry.
- In the last couple of years the Operating Margin of HWX has grown nicely.
- With an excellent Gross Margin value of 88.41%, HWX belongs to the best of the industry, outperforming 98.11% of the companies in the same industry.
- In the last couple of years the Gross Margin of HWX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.47% | ||
| PM (TTM) | 33.12% | ||
| GM | 88.41% |
OM growth 3Y3.75%
OM growth 5YN/A
PM growth 3Y9.79%
PM growth 5Y3.52%
GM growth 3Y-1.12%
GM growth 5Y4.61%
2. Health
2.1 Basic Checks
- HWX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- HWX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HWX has been increased compared to 5 years ago.
- HWX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 8.42 indicates that HWX is not in any danger for bankruptcy at the moment.
- HWX's Altman-Z score of 8.42 is amongst the best of the industry. HWX outperforms 88.68% 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.
- Looking at the Debt to FCF ratio, with a value of 0.20, HWX belongs to the top of the industry, outperforming 95.28% of the companies in the same industry.
- HWX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.01, HWX is in the better half of the industry, outperforming 77.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 8.42 |
ROIC/WACC2.53
WACC8.04%
2.3 Liquidity
- HWX has a Current Ratio of 1.32. This is a normal value and indicates that HWX is financially healthy and should not expect problems in meeting its short term obligations.
- HWX has a better Current ratio (1.32) than 69.81% of its industry peers.
- A Quick Ratio of 1.31 indicates that HWX should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.31, HWX is in the better half of the industry, outperforming 72.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- HWX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.39%.
- HWX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.84% yearly.
- The Revenue has been growing slightly by 6.44% in the past year.
- Measured over the past years, HWX shows a very strong growth in Revenue. The Revenue has been growing by 123.84% on average per year.
EPS 1Y (TTM)-5.39%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%-25.3%
Revenue 1Y (TTM)6.44%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%-2.67%
3.2 Future
- The Earnings Per Share is expected to decrease by -13.58% on average over the next years. This is quite bad
- The Revenue is expected to decrease by -2.69% on average over the next years.
EPS Next Y-24.42%
EPS Next 2Y-23.37%
EPS Next 3Y-13.58%
EPS Next 5YN/A
Revenue Next Year-0.87%
Revenue Next 2Y-0.52%
Revenue Next 3Y-2.69%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.48, which indicates a correct valuation of HWX.
- Based on the Price/Earnings ratio, HWX is valued a bit cheaper than 68.87% of the companies in the same industry.
- HWX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.98.
- A Price/Forward Earnings ratio of 23.59 indicates a rather expensive valuation of HWX.
- The rest of the industry has a similar Price/Forward Earnings ratio as HWX.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, HWX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
- 75.94% of the companies in the same industry are more expensive than HWX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HWX is valued a bit cheaper than the industry average as 61.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.11 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
- HWX has an outstanding profitability rating, which may justify a higher PE ratio.
- HWX's earnings are expected to decrease with -13.58% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.18
EPS Next 2Y-23.37%
EPS Next 3Y-13.58%
5. Dividend
5.1 Amount
- HWX has a Yearly Dividend Yield of 3.87%.
- Compared to an average industry Dividend Yield of 3.99, HWX pays a bit more dividend than its industry peers.
- HWX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
5.2 History
- HWX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- 57.78% of the earnings are spent on dividend by HWX. This is a bit on the high side, but may be sustainable.
DP57.78%
EPS Next 2Y-23.37%
EPS Next 3Y-13.58%
TSX:HWX (2/24/2026, 7:00:00 PM)
12.03
-0.02 (-0.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners35.96%
Inst Owner ChangeN/A
Ins Owners5.78%
Ins Owner ChangeN/A
Market Cap2.86B
Revenue(TTM)521.82M
Net Income(TTM)172.80M
Analysts75.38
Price Target10.88 (-9.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP57.78%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.55%
Min EPS beat(2)-0.99%
Max EPS beat(2)6.08%
EPS beat(4)1
Avg EPS beat(4)-5.07%
Min EPS beat(4)-24.39%
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)-1.82%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)3.84%
Revenue beat(4)1
Avg Revenue beat(4)-7.11%
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)7.87%
PT rev (3m)19.63%
EPS NQ rev (1m)13.04%
EPS NQ rev (3m)8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.96%
Revenue NQ rev (1m)43.46%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)29.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.48 | ||
| Fwd PE | 23.59 | ||
| P/S | 5.48 | ||
| P/FCF | 41.11 | ||
| P/OCF | 9.52 | ||
| P/B | 3.8 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 7.62 |
EPS(TTM)0.73
EY6.07%
EPS(NY)0.51
Fwd EY4.24%
FCF(TTM)0.29
FCFY2.43%
OCF(TTM)1.26
OCFY10.51%
SpS2.19
BVpS3.16
TBVpS3.16
PEG (NY)N/A
PEG (5Y)0.18
Graham Number7.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.16% | ||
| ROE | 22.97% | ||
| ROCE | 26.53% | ||
| ROIC | 20.36% | ||
| ROICexc | 23.66% | ||
| ROICexgc | 23.66% | ||
| OM | 44.47% | ||
| PM (TTM) | 33.12% | ||
| GM | 88.41% | ||
| FCFM | 13.33% |
ROA(3y)20.15%
ROA(5y)14.41%
ROE(3y)27.43%
ROE(5y)19.26%
ROIC(3y)22.43%
ROIC(5y)N/A
ROICexc(3y)28.99%
ROICexc(5y)N/A
ROICexgc(3y)28.99%
ROICexgc(5y)N/A
ROCE(3y)29.22%
ROCE(5y)N/A
ROICexgc growth 3Y17.13%
ROICexgc growth 5YN/A
ROICexc growth 3Y17.13%
ROICexc growth 5YN/A
OM growth 3Y3.75%
OM growth 5YN/A
PM growth 3Y9.79%
PM growth 5Y3.52%
GM growth 3Y-1.12%
GM growth 5Y4.61%
F-Score4
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Debt/EBITDA | 0.02 | ||
| Cap/Depr | 179.03% | ||
| Cap/Sales | 44.25% | ||
| Interest Coverage | 739.05 | ||
| Cash Conversion | 83.23% | ||
| Profit Quality | 40.26% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 8.42 |
F-Score4
WACC8.04%
ROIC/WACC2.53
Cap/Depr(3y)230.56%
Cap/Depr(5y)209.31%
Cap/Sales(3y)55.56%
Cap/Sales(5y)55.5%
Profit Quality(3y)37.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.39%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%-25.3%
EPS Next Y-24.42%
EPS Next 2Y-23.37%
EPS Next 3Y-13.58%
EPS Next 5YN/A
Revenue 1Y (TTM)6.44%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%-2.67%
Revenue Next Year-0.87%
Revenue Next 2Y-0.52%
Revenue Next 3Y-2.69%
Revenue Next 5YN/A
EBIT growth 1Y2.2%
EBIT growth 3Y51.28%
EBIT growth 5YN/A
EBIT Next Year17.38%
EBIT Next 3Y0.69%
EBIT Next 5YN/A
FCF growth 1Y445.1%
FCF growth 3YN/A
FCF growth 5Y62.93%
OCF growth 1Y7.67%
OCF growth 3Y41.56%
OCF growth 5Y104.48%
HEADWATER EXPLORATION INC / HWX.CA 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 9 / 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 -24.42% 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 57.78%.