HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
TSX:HWX - Toronto Stock Exchange - CA4220961078 - Common Stock - Currency: CAD
HWX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making HWX a very profitable company, without any liquidiy or solvency issues. HWX is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make HWX a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
HWX had positive earnings in the past year.
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.
1.2 Ratios
With an excellent Return On Assets value of 20.72%, HWX belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
HWX has a Return On Equity of 27.70%. This is amongst the best in the industry. HWX outperforms 96.19% of its industry peers.
HWX has a better Return On Invested Capital (23.74%) than 98.10% 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 7.31%.
The last Return On Invested Capital (23.74%) for HWX is above the 3 year average (22.43%), which is a sign of increasing profitability.
| 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
The Profit Margin of HWX (37.06%) is better than 95.71% of its industry peers.
In the last couple of years the Profit Margin of HWX has grown nicely.
With an excellent Operating Margin value of 48.75%, HWX belongs to the best of the industry, outperforming 97.62% 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 97.62% 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
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
HWX has an Altman-Z score of 6.17. This indicates that HWX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.17, HWX belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
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.
The Debt to FCF ratio of HWX (0.02) is better than 95.71% 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 81.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | 6.17 |
ROIC/WACC2.86
WACC8.31%
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.
HWX has a Current ratio of 1.62. This is in the better half of the industry: HWX outperforms 76.19% of its industry peers.
A Quick Ratio of 1.62 indicates that HWX should not have too much problems paying its short term obligations.
HWX has a Quick ratio of 1.62. This is in the better half of the industry: HWX outperforms 78.10% 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.
HWX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.84% yearly.
HWX shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.48%.
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)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
The Earnings Per Share is expected to decrease by -13.32% on average over the next years. This is quite bad
HWX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.54% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 8.75, which indicates a very decent valuation of HWX.
HWX's Price/Earnings ratio is a bit cheaper when compared to the industry. HWX is cheaper than 70.48% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.91, HWX is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.70, the valuation of HWX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HWX indicates a somewhat cheap valuation: HWX is cheaper than 60.48% of the companies listed in the same industry.
HWX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWX is valued cheaper than 87.62% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HWX indicates a somewhat cheap valuation: HWX is cheaper than 65.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.72 | ||
| EV/EBITDA | 4.16 |
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.
The excellent profitability rating of HWX may justify a higher PE ratio.
A cheap valuation may be justified as HWX's earnings are expected to decrease with -13.32% in the coming years.
PEG (NY)0.27
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 5.95%, which is a nice return.
HWX's Dividend Yield is rather good when compared to the industry average which is at 6.32. HWX pays more dividend than 82.38% of the companies in the same industry.
HWX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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
47.42% of the earnings are spent on dividend by HWX. 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 (7/29/2025, 7:00:00 PM)
7.35
+0.02 (+0.27%)
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 Cap1.75B
Analysts76.92
Price Target8.47 (15.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.95% |
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)2.62%
PT rev (3m)-5.38%
EPS NQ rev (1m)14.29%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)7.13%
Revenue NQ rev (3m)-11.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 10.7 | ||
| P/S | 3.23 | ||
| P/FCF | 15.72 | ||
| P/OCF | 5.27 | ||
| P/B | 2.42 | ||
| P/tB | 2.42 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)0.84
EY11.43%
EPS(NY)0.69
Fwd EY9.34%
FCF(TTM)0.47
FCFY6.36%
OCF(TTM)1.39
OCFY18.98%
SpS2.27
BVpS3.04
TBVpS3.04
PEG (NY)0.27
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 | 6.17 |
F-Score7
WACC8.31%
ROIC/WACC2.86
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%