HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
TSX:HWX - Toronto Stock Exchange - CA4220961078 - Common Stock - Currency: CAD
Overall HWX gets a fundamental rating of 7 out of 10. We evaluated HWX against 214 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make HWX suitable for value and quality investing!
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.
Each year in the past 5 years HWX had a positive operating cash flow.
1.2 Ratios
HWX has a Return On Assets of 20.72%. This is amongst the best in the industry. HWX outperforms 96.73% of its industry peers.
HWX has a better Return On Equity (27.70%) than 96.26% of its industry peers.
HWX has a Return On Invested Capital of 23.74%. This is amongst the best in the industry. HWX outperforms 98.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HWX is significantly above the industry average of 7.31%.
The 3 year average ROIC (22.43%) for HWX is below the current ROIC(23.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.72% | ||
| ROE | 27.7% | ||
| ROIC | 23.74% |
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
With an excellent Profit Margin value of 37.06%, HWX belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Profit Margin of HWX has grown nicely.
Looking at the Operating Margin, with a value of 48.75%, HWX belongs to the top of the industry, outperforming 97.66% of the companies in the same industry.
In the last couple of years the Operating Margin of HWX has grown nicely.
The Gross Margin of HWX (89.31%) is better than 97.66% of its industry peers.
HWX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.75% | ||
| PM (TTM) | 37.06% | ||
| GM | 89.31% |
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.
The number of shares outstanding for HWX has been increased compared to 1 year ago.
Compared to 5 years ago, HWX has more shares outstanding
Compared to 1 year ago, HWX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.94 indicates that HWX is not in any danger for bankruptcy at the moment.
HWX's Altman-Z score of 5.94 is amongst the best of the industry. HWX outperforms 88.32% of its industry peers.
HWX has a debt to FCF ratio of 0.02. This is a very positive value and a sign of high solvency as it would only need 0.02 years to pay back of all of its debts.
HWX has a Debt to FCF ratio of 0.02. This is amongst the best in the industry. HWX outperforms 94.86% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that HWX is not too dependend on debt financing.
HWX's Debt to Equity ratio of 0.00 is amongst the best of the industry. HWX outperforms 81.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 5.94 |
ROIC/WACC2.94
WACC8.08%
2.3 Liquidity
HWX has a Current Ratio of 1.62. This is a normal value and indicates that HWX is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.62, HWX is doing good in the industry, outperforming 75.70% of the companies in the same industry.
HWX has a Quick Ratio of 1.62. This is a normal value and indicates that HWX is financially healthy and should not expect problems in meeting its short term obligations.
HWX's Quick ratio of 1.62 is fine compared to the rest of the industry. HWX outperforms 77.57% 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 grown by an impressive 21.78% over the past year.
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.
The Revenue has grown by 20.48% in the past year. This is a very strong growth!
HWX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 123.84% yearly.
EPS 1Y (TTM)21.78%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%31.25%
Revenue 1Y (TTM)20.48%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%26.12%
3.2 Future
Based on estimates for the next years, HWX will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.32% on average per year.
Based on estimates for the next years, HWX will show a decrease in Revenue. The Revenue will decrease by -2.54% on average per year.
EPS Next Y32.56%
EPS Next 2Y-11.08%
EPS Next 3Y-13.32%
EPS Next 5YN/A
Revenue Next Year-0.29%
Revenue Next 2Y-3.05%
Revenue Next 3Y-2.54%
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
HWX is valuated reasonably with a Price/Earnings ratio of 8.29.
73.36% of the companies in the same industry are more expensive than HWX, based on the Price/Earnings ratio.
HWX is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.13, the valuation of HWX can be described as reasonable.
Based on the Price/Forward Earnings ratio, HWX is valued a bit cheaper than 61.68% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, HWX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HWX indicates a rather cheap valuation: HWX is cheaper than 87.38% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HWX is valued a bit cheaper than the industry average as 67.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 3.92 |
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.
HWX has an outstanding profitability rating, which may justify a higher PE ratio.
HWX's earnings are expected to decrease with -13.32% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.25
PEG (5Y)0.09
EPS Next 2Y-11.08%
EPS Next 3Y-13.32%
5. Dividend
5.1 Amount
HWX has a Yearly Dividend Yield of 6.42%, which is a nice return.
Compared to an average industry Dividend Yield of 6.24, HWX pays a better dividend. On top of this HWX pays more dividend than 82.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
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
HWX pays out 47.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.42%
EPS Next 2Y-11.08%
EPS Next 3Y-13.32%
TSX:HWX (7/11/2025, 7:00:00 PM)
6.96
+0.11 (+1.61%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.47%
Inst Owner ChangeN/A
Ins Owners5.85%
Ins Owner ChangeN/A
Market Cap1.65B
Analysts76.92
Price Target8.26 (18.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP47.42%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.69%
Min EPS beat(2)-24.39%
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)0
Avg Revenue beat(2)-12.39%
Min Revenue beat(2)-13.15%
Max Revenue beat(2)-11.64%
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)-2.26%
PT rev (3m)-10.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-30%
EPS NY rev (1m)0%
EPS NY rev (3m)4.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.29 | ||
| Fwd PE | 10.13 | ||
| P/S | 3.06 | ||
| P/FCF | 14.88 | ||
| P/OCF | 4.99 | ||
| P/B | 2.29 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 3.92 |
EPS(TTM)0.84
EY12.07%
EPS(NY)0.69
Fwd EY9.87%
FCF(TTM)0.47
FCFY6.72%
OCF(TTM)1.39
OCFY20.04%
SpS2.27
BVpS3.04
TBVpS3.04
PEG (NY)0.25
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.72% | ||
| ROE | 27.7% | ||
| ROCE | 30.94% | ||
| ROIC | 23.74% | ||
| ROICexc | 27.85% | ||
| ROICexgc | 27.85% | ||
| OM | 48.75% | ||
| PM (TTM) | 37.06% | ||
| GM | 89.31% | ||
| FCFM | 20.56% |
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
ROICexcg growth 3Y17.13%
ROICexcg 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-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 173.76% | ||
| Cap/Sales | 40.76% | ||
| Interest Coverage | 826.4 | ||
| Cash Conversion | 84.92% | ||
| Profit Quality | 55.47% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 5.94 |
F-Score7
WACC8.08%
ROIC/WACC2.94
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)21.78%
EPS 3Y56.18%
EPS 5Y92.84%
EPS Q2Q%31.25%
EPS Next Y32.56%
EPS Next 2Y-11.08%
EPS Next 3Y-13.32%
EPS Next 5YN/A
Revenue 1Y (TTM)20.48%
Revenue growth 3Y45.81%
Revenue growth 5Y123.84%
Sales Q2Q%26.12%
Revenue Next Year-0.29%
Revenue Next 2Y-3.05%
Revenue Next 3Y-2.54%
Revenue Next 5YN/A
EBIT growth 1Y32.6%
EBIT growth 3Y51.28%
EBIT growth 5YN/A
EBIT Next Year20.08%
EBIT Next 3Y0.76%
EBIT Next 5YN/A
FCF growth 1Y136.67%
FCF growth 3YN/A
FCF growth 5Y62.93%
OCF growth 1Y17%
OCF growth 3Y41.56%
OCF growth 5Y104.48%