HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
Canada - TSX:HWX - CA4220961078 - Common Stock
7.72 CAD
+0.17 (+2.25%)
We assign a fundamental rating of 7 out of 10 to HWX. HWX was compared to 220 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HWX had positive earnings in the past year.
In the past year HWX had a positive cash flow from operations.
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
The Return On Assets of HWX (18.78%) is better than 96.82% of its industry peers.
HWX's Return On Equity of 25.11% is amongst the best of the industry. HWX outperforms 97.27% 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 98.18% 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 6.91%.
| 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
Looking at the Profit Margin, with a value of 35.14%, HWX belongs to the top of the industry, outperforming 95.91% of the companies in the same industry.
In the last couple of years the Profit Margin of HWX has grown nicely.
The Operating Margin of HWX (46.24%) is better than 96.82% 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 97.73% of the companies in the same industry.
In the last couple of years the Gross Margin of HWX has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
HWX has a worse debt/assets ratio than last year.
2.2 Solvency
HWX has an Altman-Z score of 6.21. This indicates that HWX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HWX (6.21) is better than 87.27% 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 has a better Debt to FCF ratio (0.03) than 96.36% of its industry peers.
HWX has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
HWX has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. HWX outperforms 81.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 6.21 |
ROIC/WACC2.68
WACC8.07%
2.3 Liquidity
A Current Ratio of 1.54 indicates that HWX should not have too much problems paying its short term obligations.
HWX has a Current ratio of 1.54. This is in the better half of the industry: HWX outperforms 73.18% 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.
With a decent Quick ratio value of 1.53, HWX is doing good in the industry, outperforming 74.09% 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%.
HWX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 92.84% yearly.
The Revenue has grown by 8.47% in the past year. This is quite good.
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.
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-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
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
Based on the Price/Earnings ratio of 9.90, the valuation of HWX can be described as reasonable.
HWX's Price/Earnings ratio is a bit cheaper when compared to the industry. HWX is cheaper than 70.45% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, HWX is valued rather cheaply.
The Price/Forward Earnings ratio is 10.47, which indicates a very decent valuation of HWX.
Based on the Price/Forward Earnings ratio, HWX is valued a bit cheaper than the industry average as 66.36% of the companies are valued more expensively.
HWX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 10.47 |
4.2 Price Multiples
HWX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HWX is cheaper than 89.09% 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 63.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.52 | ||
| EV/EBITDA | 4.61 |
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 -17.10% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-7.87%
EPS Next 3Y-17.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.71%, HWX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, HWX pays a better dividend. On top of this HWX pays more dividend than 92.27% of the companies listed in the same industry.
HWX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| 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 (9/22/2025, 7:00:00 PM)
7.72
+0.17 (+2.25%)
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 Cap1.84B
Analysts76.92
Price Target8.84 (14.51%)
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 | 9.9 | ||
| Fwd PE | 10.47 | ||
| P/S | 3.49 | ||
| P/FCF | 20.52 | ||
| P/OCF | 5.92 | ||
| P/B | 2.5 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 4.61 |
EPS(TTM)0.78
EY10.1%
EPS(NY)0.74
Fwd EY9.55%
FCF(TTM)0.38
FCFY4.87%
OCF(TTM)1.3
OCFY16.88%
SpS2.21
BVpS3.09
TBVpS3.09
PEG (NY)N/A
PEG (5Y)0.11
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 | 6.21 |
F-Score5
WACC8.07%
ROIC/WACC2.68
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%