HEADWATER EXPLORATION INC (HWX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HWX - CA4220961078 - Common Stock
10.51 CAD
+0.14 (+1.35%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HWX is not valued too expensively and it also shows a decent growth rate.
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.
- In the past 5 years HWX has always been profitable.
- Each year in the past 5 years HWX had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 17.16%, HWX belongs to the best of the industry, outperforming 96.73% of the companies in the same industry.
- With an excellent Return On Equity value of 22.97%, HWX belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
- The Return On Invested Capital of HWX (20.36%) is better than 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 6.53%.
| 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
- HWX has a better Profit Margin (33.12%) than 95.33% of its industry peers.
- HWX's Profit Margin has improved in the last couple of years.
- HWX has a Operating Margin of 44.47%. This is amongst the best in the industry. HWX outperforms 97.66% of its industry peers.
- HWX's Operating Margin has improved in the last couple of years.
- HWX has a better Gross Margin (88.41%) than 98.13% of its industry peers.
- In the last couple of years the Gross Margin of HWX has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HWX is creating value.
- HWX has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HWX has been increased compared to 5 years ago.
- HWX has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 7.59 indicates that HWX is not in any danger for bankruptcy at the moment.
- HWX has a better Altman-Z score (7.59) than 87.85% 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 94.86% of its industry peers.
- HWX has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.01, HWX is doing good in the industry, outperforming 78.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.2 | ||
| Altman-Z | 7.59 |
ROIC/WACC2.54
WACC8.03%
2.3 Liquidity
- HWX has a Current Ratio of 1.32. 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 1.32, HWX is doing good in the industry, outperforming 70.56% 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.
- Looking at the Quick ratio, with a value of 1.31, HWX is in the better half of the industry, outperforming 73.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
- HWX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.39%.
- 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.
- HWX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.44%.
- HWX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 123.84% yearly.
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
- HWX is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.83% yearly.
- HWX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.69% yearly.
EPS Next Y-14.53%
EPS Next 2Y-7.24%
EPS Next 3Y-18.83%
EPS Next 5YN/A
Revenue Next Year-0.87%
Revenue Next 2Y-0.52%
Revenue Next 3Y-2.69%
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 14.40, the valuation of HWX can be described as correct.
- 68.69% of the companies in the same industry are more expensive than HWX, based on the Price/Earnings ratio.
- HWX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 14.06, the valuation of HWX can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HWX indicates a somewhat cheap valuation: HWX is cheaper than 66.36% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, HWX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 14.06 |
4.2 Price Multiples
- 82.71% of the companies in the same industry are more expensive than HWX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, HWX is valued a bit cheaper than the industry average as 62.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.07 | ||
| EV/EBITDA | 6.65 |
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 -18.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-7.24%
EPS Next 3Y-18.83%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, HWX is a good candidate for dividend investing.
- HWX's Dividend Yield is a higher than the industry average which is at 2.82.
- HWX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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
- 57.78% of the earnings are spent on dividend by HWX. This is a bit on the high side, but may be sustainable.
DP57.78%
EPS Next 2Y-7.24%
EPS Next 3Y-18.83%
TSX:HWX (1/19/2026, 7:00:00 PM)
10.51
+0.14 (+1.35%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-29 2025-10-29/amc
Earnings (Next)03-05 2026-03-05/amc
Inst Owners35.96%
Inst Owner ChangeN/A
Ins Owners5.78%
Ins Owner ChangeN/A
Market Cap2.51B
Revenue(TTM)521.82M
Net Income(TTM)172.80M
Analysts76.92
Price Target10.09 (-4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend0.4
Dividend Growth(5Y)N/A
DP57.78%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
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)1.71%
PT rev (3m)14.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.4 | ||
| Fwd PE | 14.06 | ||
| P/S | 4.81 | ||
| P/FCF | 36.07 | ||
| P/OCF | 8.35 | ||
| P/B | 3.34 | ||
| P/tB | 3.34 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)0.73
EY6.95%
EPS(NY)0.75
Fwd EY7.11%
FCF(TTM)0.29
FCFY2.77%
OCF(TTM)1.26
OCFY11.97%
SpS2.19
BVpS3.15
TBVpS3.15
PEG (NY)N/A
PEG (5Y)0.16
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 | 7.59 |
F-Score4
WACC8.03%
ROIC/WACC2.54
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-14.53%
EPS Next 2Y-7.24%
EPS Next 3Y-18.83%
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-0.52%
Revenue Next 3Y-2.69%
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.
What is the valuation status of HEADWATER EXPLORATION INC (HWX.CA) stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the earnings growth outlook for HEADWATER EXPLORATION INC?
The Earnings per Share (EPS) of HEADWATER EXPLORATION INC (HWX.CA) is expected to decline by -14.53% in the next year.
Can you provide the dividend sustainability for HWX stock?
The dividend rating of HEADWATER EXPLORATION INC (HWX.CA) is 5 / 10 and the dividend payout ratio is 57.78%.