- The company is a Spin off from HWO High Arctic Energy Services.
- HoH has assets (rigs) to operate in LNG extraction in PNG. It also offers manpower and other Services.
- The company has cash of 13 MUSD, which supports a Minimum Value of CAD1,44.
- At CAD 1,13 per share its worth 0,36x book Value.
- Book Value IS CAD 3
- Value of assets reposition would be around CAD 5,55
- It has no debt.
- Inventory supports 0,84 CAD per share.
- So only working capital means CAD 2,28 per share.
- It has barely no income right now but is preserving cash quite well.
- In 2026 is expected the FID in PNG LNG proyect that couldnput back the company on track, with maybe a revenue of 50 to 120 mUSD and a 20% margin. So there IS the optionality of this company could generate almost its market cap every year.
- I am not sure about the homesty of the management though (they tried to spin off HOH from HWO privately so It wouldntbe accesible to railer Investors) so It has its risks.
Its very strange that the market cap IS so low.
Have other thoughts on High Arctic Overseas Holdings?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeHow well do narratives help inform your perspective?
Disclaimer
The user Imthetxarbi has a position in TSXV:HOH. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.