Hemisphere Energy Corp. (HME) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alvopetro Energy Ltd.

Gear Energy Ltd.

Kolibri Global Energy, Inc.

Canacol Energy Ltd.

Hemisphere Energy Corp.

STEP Energy Services Ltd.

Yangarra Resources Ltd.

Trillion Energy International, Inc.

Touchstone Exploration, Inc.

Reconnaissance Energy Africa Ltd.

CGX Energy, Inc.

Why is Hemisphere Energy Corp. ?

High Management Efficiency with a high ROE of 47.81%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 27.49

Healthy long term growth as Net Sales has grown by an annual rate of 29.60% and Operating profit at 47.54%

Flat results in Jun 25

ROCE(HY) Lowest at 42.32%
RAW MATERIAL COST(Y) Grown by 10.67% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 9.64%

With ROE of 40.50%, it has a very attractive valuation with a 2.65 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.59%, its profits have fallen by -3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hemisphere Energy Corp. 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 Hemisphere Energy Corp. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hemisphere Energy Corp.

16.85%

62.12

27.86%

S&P/TSX 60

19.1%

1.23

15.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.60%

EBIT Growth (5y)

47.54%

EBIT to Interest (avg)

27.49

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

1.07

Tax Ratio

23.99%

Dividend Payout Ratio

29.65%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

58.72%

ROE (avg)

47.81%

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

2.65

EV to EBIT

4.27

EV to EBITDA

3.39

EV to Capital Employed

3.29

EV to Sales

2.28

PEG Ratio

Dividend Yield

ROCE (Latest)

77.08%

ROE (Latest)

40.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 57.1 MM

DEBT-EQUITY RATIO (HY)

Lowest at -24.93 %

-7What is not working for the Company

ROCE(HY)

Lowest at 42.32%

RAW MATERIAL COST(Y)

Grown by 10.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.64%

PRE-TAX PROFIT(Q)

Lowest at CAD 9.01 MM

NET PROFIT(Q)

Lowest at CAD 6.67 MM

Here's what is working for Hemisphere Energy Corp.

Operating Cash Flow

Highest at CAD 57.1 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at -24.93 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at CAD 3.02 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Hemisphere Energy Corp.

Pre-Tax Profit

Lowest at CAD 9.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 6.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Net Profit

At CAD 6.67 MM has Fallen at -25.18%

over average net sales of the previous four periods of CAD 8.92 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 9.64%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.67% (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