Valuation
Hemisphere Energy recently announced their quarterly dividend of $.025 per share, in-line with previous dividend yield of 5% based on current C$2 per share pricing. Investors who have held shares in the company for the past few years will also be happy with the additional special dividend income of C$2.9 million (C$.03 per share) they received this year. Hemisphere Energy has impressed by growing EPS at 43% per year over the past five years and surging Profit Margins to 37.7%. Earnings have been growing rapidly, and with low debt and a low payout ratio, I think that the company could turn out to be a great dividend stock.
Going Forward with a strong Balance Sheet in a weak energy environment, Hemisphere Energy is reaffirming a strong production outlook as forecast for 2025 guidance. Currently trading at a PE ratio of only 6.25x in an industry average of over 13x, I believe the stock is currently undervalued and with a forward Price to Earnings ratio of 10x could be trading at C$2.95
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Disclaimer
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