ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Headwater Exploration, Inc. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Healthy long term growth as Net Sales has grown by an annual rate of 77.42% and Operating profit at 129.28%
3
The company has declared Negative results for the last 4 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at CAD 269.27 MM
- NET PROFIT(HY) At CAD 73.38 MM has Grown at -27.27%
- ROCE(HY) Lowest at 18.74%
4
With ROE of 19.34%, it has a fair valuation with a 4.06 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 69.81%, its profits have fallen by -27%
5
Market Beating Performance
- The stock has generated a return of 69.81% in the last 1 year, much higher than market (S&P/TSX 60) returns of 29.60%
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?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Headwater Exploration, Inc.
69.81%
2.03
33.05%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
77.42%
EBIT Growth (5y)
129.28%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.70
Tax Ratio
23.36%
Dividend Payout Ratio
68.31%
Pledged Shares
0
Institutional Holding
7.96%
ROCE (avg)
32.64%
ROE (avg)
20.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
4.06
EV to EBIT
15.12
EV to EBITDA
9.30
EV to Capital Employed
4.29
EV to Sales
5.79
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
28.39%
ROE (Latest)
19.34%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -5.16% (YoY
NET SALES(Q)
Highest at CAD 149.88 MM
-14What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 269.27 MM
NET PROFIT(HY)
At CAD 73.38 MM has Grown at -27.27%
ROCE(HY)
Lowest at 18.74%
DEBT-EQUITY RATIO
(HY)
Highest at -6.78 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 213.64 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.52 times
Here's what is working for Headwater Exploration, Inc.
Net Sales
Highest at CAD 149.88 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Raw Material Cost
Fallen by -5.16% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Headwater Exploration, Inc.
Net Profit
At CAD 73.38 MM has Grown at -27.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Debt-Equity Ratio
Highest at -6.78 % and Grown
In each half year 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
Operating Cash Flow
Lowest at CAD 269.27 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Inventory Turnover Ratio
Lowest at 213.64 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 7.52 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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