Headwater Exploration, Inc. (HWX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Whitecap Resources, Inc.

Headwater Exploration, Inc.

Peyto Exploration & Development Corp.

Baytex Energy Corp.

Crescent Point Energy Corp.

Athabasca Oil Corp.

NuVista Energy Ltd.

Birchcliff Energy Ltd.

Paramount Resources Ltd.

Enerplus Corp.

Tamarack Valley Energy Ltd.

Why is Headwater Exploration, Inc. ?

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)

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)

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%

Majority shareholders : Mutual Funds

Real-Time Research Report

Verdict Report

How much should you buy?

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.

103.99%

0.16

33.35%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

125.40%

EBIT Growth (5y)

88.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

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

Institutional Holding

7.96%

ROCE (avg)

32.64%

ROE (avg)

20.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.03

EV to EBIT

14.16

EV to EBITDA

8.72

EV to Capital Employed

4.44

EV to Sales

5.69

PEG Ratio

Dividend Yield

ROCE (Latest)

31.37%

ROE (Latest)

20.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 72.94%

DIVIDEND PER SHARE(HY)

Highest at CAD 8.65

-12What is not working for the Company

NET PROFIT(HY)

At CAD 73.16 MM has Grown at -26.76%

INTEREST(HY)

At CAD 0.54 MM has Grown at 13.42%

ROCE(HY)

Lowest at 24.05%

DEBT-EQUITY RATIO (HY)

Highest at -14.7 %

OPERATING PROFIT MARGIN(Q)

Lowest at 65.92 %

EPS(Q)

Lowest at CAD 0.15

Here's what is working for Headwater Exploration, Inc.

Dividend per share

Highest at CAD 8.65

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 72.94%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Headwater Exploration, Inc.

Net Profit

At CAD 73.16 MM has Grown at -26.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Interest

At CAD 0.54 MM has Grown at 13.42%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at -14.7 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit Margin

Lowest at 65.92 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CAD 0.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)