High Arctic Energy Services Inc

TSX:HWO Stock Report

Market Cap: CA$13.9m

High Arctic Energy Services Valuation

Is HWO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HWO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HWO (CA$1.14) is trading below our estimate of fair value (CA$184.1)

Significantly Below Fair Value: HWO is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HWO?

Key metric: As HWO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for HWO. This is calculated by dividing HWO's market cap by their current revenue.
What is HWO's PS Ratio?
PS Ratio0.2x
SalesCA$67.61m
Market CapCA$13.94m

Price to Sales Ratio vs Peers

How does HWO's PS Ratio compare to its peers?

The above table shows the PS ratio for HWO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
QST Questor Technology
1.9x43.0%CA$7.9m
ESN Essential Energy Services
0.3xn/aCA$49.5m
CTEK Cleantek Industries
0.3xn/aCA$3.7m
PSD Pulse Seismic
3.5xn/aCA$120.1m
HWO High Arctic Energy Services
0.2xn/aCA$13.9m

Price-To-Sales vs Peers: HWO is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

How does HWO's PS Ratio compare vs other companies in the CA Energy Services Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
WEII.H Wolverine Energy and Infrastructure
0.08xn/aUS$3.10m
FLNT Flint
0.005xn/aUS$1.96m
DVG Divergent Energy Services
0.01xn/aUS$134.21k
No more companies available in this PS range
HWO 0.2xIndustry Avg. 0.6xNo. of Companies8PS00.40.81.21.62+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HWO is good value based on its Price-To-Sales Ratio (0.2x) compared to the Canadian Energy Services industry average (0.6x).

Price to Sales Ratio vs Fair Ratio

What is HWO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HWO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate HWO's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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