ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Headwater Exploration, Inc. ?
1
Strong Long Term Fundamental Strength with a 91.77% CAGR growth in Operating Profits
- Company has very low debt and has enough cash to service the debt requirements
- The company has been able to generate a Return on Capital Employed (avg) of 32.64% signifying high profitability per unit of total capital (equity and debt)
2
Negative results in Jun 25
- INTEREST(HY) At CAD 0.55 MM has Grown at 19.91%
- INTEREST COVERAGE RATIO(Q) Lowest at 29,206.88
- RAW MATERIAL COST(Y) Grown by 17.56% (YoY)
3
With ROE of 25.12%, it has a fair valuation with a 2.40 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.99%, its profits have fallen by -1.2%
4
Majority shareholders : Mutual Funds
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Headwater Exploration, Inc. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Headwater Exploration, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Headwater Exploration, Inc.
-100.0%
0.16
33.35%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
153.07%
EBIT Growth (5y)
91.77%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.69
Tax Ratio
23.36%
Dividend Payout Ratio
51.55%
Pledged Shares
0
Institutional Holding
7.96%
ROCE (avg)
32.64%
ROE (avg)
20.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.32
EV to EBIT
6.59
EV to EBITDA
4.28
EV to Capital Employed
2.57
EV to Sales
3.03
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
38.95%
ROE (Latest)
25.12%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-18What is not working for the Company
INTEREST(HY)
At CAD 0.55 MM has Grown at 19.91%
INTEREST COVERAGE RATIO(Q)
Lowest at 29,206.88
RAW MATERIAL COST(Y)
Grown by 17.56% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at -15.51 %
NET SALES(Q)
Lowest at CAD 119.1 MM
OPERATING PROFIT(Q)
Lowest at CAD 80.61 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 67.69 %
PRE-TAX PROFIT(Q)
Lowest at CAD 47.48 MM
NET PROFIT(Q)
Lowest at CAD 36.43 MM
EPS(Q)
Lowest at CAD 0.16
Here's what is working for Headwater Exploration, Inc.
Depreciation
Highest at CAD 33.06 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Headwater Exploration, Inc.
Interest Coverage Ratio
Lowest at 29,206.88
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CAD 0.55 MM has Grown at 19.91%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Net Sales
Lowest at CAD 119.1 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Net Sales
At CAD 119.1 MM has Fallen at -11.91%
over average net sales of the previous four periods of CAD 135.2 MMMOJO Watch
Near term sales trend is negative
Net Sales (CAD MM)
Operating Profit
Lowest at CAD 80.61 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 67.69 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD 47.48 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Pre-Tax Profit
At CAD 47.48 MM has Fallen at -27.5%
over average net sales of the previous four periods of CAD 65.48 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD 36.43 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Net Profit
At CAD 36.43 MM has Fallen at -27.43%
over average net sales of the previous four periods of CAD 50.19 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD 0.16
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
Debt-Equity Ratio
Highest at -15.51 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 17.56% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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