HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HWX - CA4220961078 - Common Stock
9.39 CAD
0 (0%)
HWX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 212 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 correct valuation and a medium growth rate.
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.
Each year in the past 5 years HWX has been profitable.
In the past 5 years HWX always reported a positive cash flow from operatings.
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 better Return On Equity (22.97%) than 97.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 20.36%, HWX belongs to the top of the industry, outperforming 98.11% 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 6.57%.
| 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
The Profit Margin of HWX (33.12%) is better than 95.75% of its industry peers.
HWX's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 44.47%, HWX belongs to the top of the industry, outperforming 97.64% of the companies in the same industry.
HWX's Operating Margin has improved in the last couple of years.
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.
HWX's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HWX is creating value.
Compared to 1 year ago, HWX has more shares outstanding
HWX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HWX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.96 indicates that HWX is not in any danger for bankruptcy at the moment.
HWX has a Altman-Z score of 6.96. This is amongst the best in the industry. HWX outperforms 87.74% of its industry peers.
The Debt to FCF ratio of HWX is 0.20, which is an excellent value as it means it would take HWX, only 0.20 years of fcf income to pay off all of its debts.
HWX's Debt to FCF ratio of 0.20 is amongst the best of the industry. HWX outperforms 95.28% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that HWX is not too dependend on debt financing.
HWX has a Debt to Equity ratio of 0.01. This is in the better half of the industry: HWX outperforms 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 6.96 |
ROIC/WACC2.6
WACC7.82%
2.3 Liquidity
A Current Ratio of 1.32 indicates that HWX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.32, HWX is in the better half of the industry, outperforming 69.34% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that HWX should not have too much problems paying its short term obligations.
HWX has a Quick ratio of 1.31. This is in the better half of the industry: HWX outperforms 72.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for HWX have decreased by -5.39% in the last year.
HWX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.84% yearly.
Looking at the last year, HWX shows a small growth in Revenue. The Revenue has grown by 6.44% in the last year.
The Revenue has been growing by 123.84% on average over the past years. This is a very strong growth!
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 -20.02% on average over the next years. This is quite bad
Based on estimates for the next years, HWX will show a decrease in Revenue. The Revenue will decrease by -4.45% on average per year.
EPS Next Y-15.12%
EPS Next 2Y-8.5%
EPS Next 3Y-20.02%
EPS Next 5YN/A
Revenue Next Year-0.87%
Revenue Next 2Y-3.1%
Revenue Next 3Y-4.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.86 indicates a correct valuation of HWX.
Based on the Price/Earnings ratio, HWX is valued a bit cheaper than the industry average as 70.28% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, HWX is valued rather cheaply.
HWX is valuated correctly with a Price/Forward Earnings ratio of 12.91.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HWX indicates a somewhat cheap valuation: HWX is cheaper than 66.98% of the companies listed in the same industry.
HWX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 12.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWX is valued cheaper than 83.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HWX is valued a bit cheaper than the industry average as 63.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 5.91 |
4.3 Compensation for Growth
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 -20.02% in the coming years.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-8.5%
EPS Next 3Y-20.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, HWX is a good candidate for dividend investing.
HWX's Dividend Yield is a higher than the industry average which is at 2.88.
Compared to an average S&P500 Dividend Yield of 1.87, HWX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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 57.78% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.78%
EPS Next 2Y-8.5%
EPS Next 3Y-20.02%
TSX:HWX (12/24/2025, 7:00:00 PM)
9.39
0 (0%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.37%
Inst Owner ChangeN/A
Ins Owners5.82%
Ins Owner ChangeN/A
Market Cap2.24B
Revenue(TTM)521.82M
Net Income(TTM)172.80M
Analysts76.92
Price Target10.03 (6.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP57.78%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)10.28%
PT rev (3m)13.46%
EPS NQ rev (1m)8.33%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)29.8%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 12.91 | ||
| P/S | 4.3 | ||
| P/FCF | 32.22 | ||
| P/OCF | 7.46 | ||
| P/B | 2.98 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 5.91 |
EPS(TTM)0.73
EY7.77%
EPS(NY)0.73
Fwd EY7.74%
FCF(TTM)0.29
FCFY3.1%
OCF(TTM)1.26
OCFY13.4%
SpS2.19
BVpS3.15
TBVpS3.15
PEG (NY)N/A
PEG (5Y)0.14
Graham Number7.19
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 | 6.96 |
F-Score4
WACC7.82%
ROIC/WACC2.6
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-15.12%
EPS Next 2Y-8.5%
EPS Next 3Y-20.02%
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-3.1%
Revenue Next 3Y-4.45%
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 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 12.86 and the Price/Book (PB) ratio is 2.98.
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 57.78%.