HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
Canada - TSX:HWX - CA4220961078 - Common Stock
7.55 CAD
-0.16 (-2.08%)
Taking everything into account, HWX scores 7 out of 10 in our fundamental rating. HWX was compared to 216 industry peers in the Oil, Gas & Consumable Fuels industry. HWX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year HWX had a positive cash flow from operations.
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's Return On Assets of 18.78% is amongst the best of the industry. HWX outperforms 96.76% of its industry peers.
HWX has a better Return On Equity (25.11%) than 97.22% 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 98.15% 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 6.93%.
| 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 96.30% of its industry peers.
HWX's Profit Margin has improved in the last couple of years.
HWX has a better Operating Margin (46.24%) than 96.76% of its industry peers.
In the last couple of years the Operating Margin of HWX has grown nicely.
With an excellent Gross Margin value of 88.62%, HWX belongs to the best of the industry, outperforming 97.69% of the companies in the same industry.
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.
HWX has more shares outstanding than it did 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
An Altman-Z score of 6.12 indicates that HWX is not in any danger for bankruptcy at the moment.
HWX has a better Altman-Z score (6.12) than 87.50% of its industry peers.
The Debt to FCF ratio of HWX is 0.03, which is an excellent value as it means it would take HWX, only 0.03 years of fcf income to pay off all of its debts.
HWX has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. HWX outperforms 96.76% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that HWX is not too dependend on debt financing.
HWX has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. HWX outperforms 81.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6.12 |
ROIC/WACC2.66
WACC8.12%
2.3 Liquidity
HWX has a Current Ratio of 1.54. 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 (1.54) than 73.15% of its industry peers.
HWX has a Quick Ratio of 1.53. 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 1.53, HWX is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The earnings per share for HWX have decreased by -0.12% in the last year.
The Earnings Per Share has been growing by 92.84% on average over the past years. This is a very strong growth
HWX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.47%.
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)-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
Based on estimates for the next years, HWX will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.10% on average per year.
The Revenue is expected to decrease by -3.90% on average over the next years.
EPS Next Y-15.12%
EPS Next 2Y-7.87%
EPS Next 3Y-17.1%
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
With a Price/Earnings ratio of 9.68, the valuation of HWX can be described as very reasonable.
Based on the Price/Earnings ratio, HWX is valued a bit cheaper than 70.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, HWX is valued rather cheaply.
HWX is valuated reasonably with a Price/Forward Earnings ratio of 10.24.
Based on the Price/Forward Earnings ratio, HWX is valued a bit cheaper than the industry average as 65.28% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. HWX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWX is valued cheaper than 88.43% of the companies in the same industry.
HWX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HWX is cheaper than 62.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.07 | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
HWX has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HWX's earnings are expected to decrease with -17.10% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-7.87%
EPS Next 3Y-17.1%
5. Dividend
5.1 Amount
HWX has a Yearly Dividend Yield of 5.71%, which is a nice return.
Compared to an average industry Dividend Yield of 6.17, HWX pays a better dividend. On top of this HWX pays more dividend than 92.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
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-7.87%
EPS Next 3Y-17.1%
TSX:HWX (9/19/2025, 7:00:00 PM)
7.55
-0.16 (-2.08%)
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 Cap1.80B
Analysts76.92
Price Target8.84 (17.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
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)0%
PT rev (3m)4.66%
EPS NQ rev (1m)-6.67%
EPS NQ rev (3m)-22.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-35.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.34%
Revenue NY rev (1m)1.81%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.68 | ||
| Fwd PE | 10.24 | ||
| P/S | 3.42 | ||
| P/FCF | 20.07 | ||
| P/OCF | 5.79 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 4.5 |
EPS(TTM)0.78
EY10.33%
EPS(NY)0.74
Fwd EY9.77%
FCF(TTM)0.38
FCFY4.98%
OCF(TTM)1.3
OCFY17.26%
SpS2.21
BVpS3.09
TBVpS3.09
PEG (NY)N/A
PEG (5Y)0.1
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
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-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 | 6.12 |
F-Score5
WACC8.12%
ROIC/WACC2.66
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-7.87%
EPS Next 3Y-17.1%
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 Year20.08%
EBIT Next 3Y0.76%
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%