HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
Canada - TSX:HWX - CA4220961078 - Common Stock
7.5 CAD
+0.18 (+2.46%)
HWX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 218 industry peers in the Oil, Gas & Consumable Fuels industry. HWX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
The Return On Assets of HWX (18.78%) is better than 96.79% of its industry peers.
HWX has a better Return On Equity (25.11%) than 97.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.62%, HWX belongs to the top of the industry, outperforming 97.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HWX is significantly above the industry average of 6.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 25.11% | ||
| ROIC | 21.62% |
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 has a Profit Margin of 35.14%. This is amongst the best in the industry. HWX outperforms 95.87% of its industry peers.
In the last couple of years the Profit Margin of HWX has grown nicely.
HWX has a Operating Margin of 46.24%. This is amongst the best in the industry. HWX outperforms 96.79% of its industry peers.
In the last couple of years the Operating Margin of HWX has grown nicely.
The Gross Margin of HWX (88.62%) is better than 97.71% of its industry peers.
HWX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 46.24% | ||
| PM (TTM) | 35.14% | ||
| GM | 88.62% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HWX is creating value.
The number of shares outstanding for HWX has been increased compared to 1 year ago.
HWX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HWX is higher compared to a year ago.
2.2 Solvency
HWX has an Altman-Z score of 6.00. This indicates that HWX is financially healthy and has little risk of bankruptcy at the moment.
HWX has a better Altman-Z score (6.00) than 87.16% of its industry peers.
HWX has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
HWX's Debt to FCF ratio of 0.03 is amongst the best of the industry. HWX outperforms 96.33% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that HWX is not too dependend on debt financing.
HWX has a better Debt to Equity ratio (0.00) than 81.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6 |
ROIC/WACC2.75
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.54 indicates that HWX should not have too much problems paying its short term obligations.
The Current ratio of HWX (1.54) is better than 72.48% of its industry peers.
A Quick Ratio of 1.53 indicates that HWX should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.53, HWX is doing good in the industry, outperforming 73.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
HWX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.12%.
Measured over the past years, HWX shows a very strong growth in Earnings Per Share. The EPS has been growing by 92.84% on average per year.
HWX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
The Revenue has been growing by 123.84% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-0.12%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)8.47%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%7.66%
3.2 Future
HWX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.24% yearly.
Based on estimates for the next years, HWX will show a decrease in Revenue. The Revenue will decrease by -3.90% on average per year.
EPS Next Y-15.12%
EPS Next 2Y-8.18%
EPS Next 3Y-18.24%
EPS Next 5YN/A
Revenue Next Year-1.17%
Revenue Next 2Y-0.26%
Revenue Next 3Y-3.9%
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
Based on the Price/Earnings ratio of 9.62, the valuation of HWX can be described as reasonable.
Based on the Price/Earnings ratio, HWX is valued a bit cheaper than 71.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.13, HWX is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.24, the valuation of HWX can be described as very reasonable.
HWX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HWX is cheaper than 66.06% of the companies in the same industry.
HWX is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWX is valued cheaper than 88.53% of the companies in the same industry.
62.39% of the companies in the same industry are more expensive than HWX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.02 | ||
| EV/EBITDA | 4.37 |
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 -18.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-8.18%
EPS Next 3Y-18.24%
5. Dividend
5.1 Amount
HWX has a Yearly Dividend Yield of 6.03%, which is a nice return.
HWX's Dividend Yield is rather good when compared to the industry average which is at 5.34. HWX pays more dividend than 92.66% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
5.2 History
HWX 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 Years0
Div Non Decr Years2
5.3 Sustainability
HWX pays out 52.81% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP52.81%
EPS Next 2Y-8.18%
EPS Next 3Y-18.24%
TSX:HWX (11/5/2025, 7:00:00 PM)
7.5
+0.18 (+2.46%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners38.82%
Inst Owner ChangeN/A
Ins Owners5.84%
Ins Owner ChangeN/A
Market Cap1.79B
Revenue(TTM)525.27M
Net Income(TTM)184.57M
Analysts76.92
Price Target9.1 (21.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.03% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP52.81%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.99%
Min EPS beat(2)-0.99%
Max EPS beat(2)-0.99%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-4.65%
Min Revenue beat(2)-13.15%
Max Revenue beat(2)3.84%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)2.88%
PT rev (3m)7.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.62 | ||
| Fwd PE | 10.24 | ||
| P/S | 3.41 | ||
| P/FCF | 20.02 | ||
| P/OCF | 5.78 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)0.78
EY10.4%
EPS(NY)0.73
Fwd EY9.76%
FCF(TTM)0.37
FCFY5%
OCF(TTM)1.3
OCFY17.31%
SpS2.2
BVpS3.08
TBVpS3.08
PEG (NY)N/A
PEG (5Y)0.1
Graham Number7.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.78% | ||
| ROE | 25.11% | ||
| ROCE | 28.17% | ||
| ROIC | 21.62% | ||
| ROICexc | 25.3% | ||
| ROICexgc | 25.3% | ||
| OM | 46.24% | ||
| PM (TTM) | 35.14% | ||
| GM | 88.62% | ||
| FCFM | 17.03% |
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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 171.48% | ||
| Cap/Sales | 41.97% | ||
| Interest Coverage | 742.76 | ||
| Cash Conversion | 83.43% | ||
| Profit Quality | 48.47% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 6 |
F-Score5
WACC7.87%
ROIC/WACC2.75
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)-0.12%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%-27.27%
EPS Next Y-15.12%
EPS Next 2Y-8.18%
EPS Next 3Y-18.24%
EPS Next 5YN/A
Revenue 1Y (TTM)8.47%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%7.66%
Revenue Next Year-1.17%
Revenue Next 2Y-0.26%
Revenue Next 3Y-3.9%
Revenue Next 5YN/A
EBIT growth 1Y6.72%
EBIT growth 3Y51.28%
EBIT growth 5YN/A
EBIT Next Year16.9%
EBIT Next 3Y-0.62%
EBIT Next 5YN/A
FCF growth 1Y5920.62%
FCF growth 3YN/A
FCF growth 5Y62.93%
OCF growth 1Y16.69%
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 7 / 10 to HWX.CA.
Can you provide the valuation status for HEADWATER EXPLORATION INC?
ChartMill assigns a valuation rating of 6 / 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.
Can you provide the PE and PB ratios for HWX stock?
The Price/Earnings (PE) ratio for HEADWATER EXPLORATION INC (HWX.CA) is 9.62 and the Price/Book (PB) ratio is 2.44.
Is the dividend of HEADWATER EXPLORATION INC sustainable?
The dividend rating of HEADWATER EXPLORATION INC (HWX.CA) is 5 / 10 and the dividend payout ratio is 52.81%.