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HME

Hemisphere EnergyTSXV:HME Stock Report

Last Price

CA$1.09

Market Cap

CA$99.5m

7D

0.9%

1Y

354.2%

Updated

19 Jan, 2022

Data

Company Financials
HME fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends0/6

HME Stock Overview

Hemisphere Energy Corporation acquires, explores for, develops, and produces petroleum and natural gas interests in Canada.

Price History & Performance

Summary of all time highs, changes and price drops for Hemisphere Energy
Historical stock prices
Current Share PriceCA$1.09
52 Week HighCA$1.10
52 Week LowCA$0.21
Beta3.19
1 Month Change21.11%
3 Month Change21.11%
1 Year Change354.17%
3 Year Change890.91%
5 Year Change319.23%
Change since IPO-90.92%

Recent News & Updates

Nov 24
Hemisphere Energy (CVE:HME) Is Looking To Continue Growing Its Returns On Capital

Hemisphere Energy (CVE:HME) Is Looking To Continue Growing Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Shareholder Returns

HMECA Oil and GasCA Market
7D0.9%1.6%-0.6%
1Y354.2%53.8%17.7%

Return vs Industry: HME exceeded the Canadian Oil and Gas industry which returned 53.7% over the past year.

Return vs Market: HME exceeded the Canadian Market which returned 18.2% over the past year.

Price Volatility

Is HME's price volatile compared to industry and market?
HME volatility
HME Average Weekly Movement7.2%
Oil and Gas Industry Average Movement10.0%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.6%
10% least volatile stocks in CA Market3.7%

Stable Share Price: HME is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HME's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1977n/aDon Simmonshttps://www.hemisphereenergy.ca

Hemisphere Energy Corporation acquires, explores for, develops, and produces petroleum and natural gas interests in Canada. It primarily owns a 100% working interest in 8,800 net acres of land in the Atlee Buffalo property located in southeastern Alberta; and a 100% working interest in 8,024 net acres of land in the Jenner property situated in southeastern Alberta. The company was formerly known as Northern Hemisphere Development Corp. and changed its name to Hemisphere Energy Corporation in April 2009.

Hemisphere Energy Fundamentals Summary

How do Hemisphere Energy's earnings and revenue compare to its market cap?
HME fundamental statistics
Market CapCA$99.51m
Earnings (TTM)CA$336.07k
Revenue (TTM)CA$28.39m

296.2x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HME income statement (TTM)
RevenueCA$28.39m
Cost of RevenueCA$7.66m
Gross ProfitCA$20.74m
ExpensesCA$20.40m
EarningsCA$336.07k

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0037
Gross Margin73.04%
Net Profit Margin1.18%
Debt/Equity Ratio96.5%

How did HME perform over the long term?

See historical performance and comparison

Valuation

Is Hemisphere Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HME (CA$1.09) is trading below our estimate of fair value (CA$2.74)

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


Price To Earnings Ratio

PE vs Industry: HME is poor value based on its PE Ratio (296.2x) compared to the Canadian Oil and Gas industry average (8x).

PE vs Market: HME is poor value based on its PE Ratio (296.2x) compared to the Canadian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HME is overvalued based on its PB Ratio (5.9x) compared to the CA Oil and Gas industry average (2.2x).


Future Growth

How is Hemisphere Energy forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.9%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hemisphere Energy has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hemisphere Energy performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HME has a large one-off loss of CA$768.7K impacting its September 30 2021 financial results.

Growing Profit Margin: HME became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HME has become profitable over the past 5 years, growing earnings by 31.1% per year.

Accelerating Growth: HME has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HME has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (159%).


Return on Equity

High ROE: HME's Return on Equity (2%) is considered low.


Financial Health

How is Hemisphere Energy's financial position?


Financial Position Analysis

Short Term Liabilities: HME's short term assets (CA$3.8M) do not cover its short term liabilities (CA$14.2M).

Long Term Liabilities: HME's short term assets (CA$3.8M) do not cover its long term liabilities (CA$25.0M).


Debt to Equity History and Analysis

Debt Level: HME's net debt to equity ratio (96.2%) is considered high.

Reducing Debt: HME's debt to equity ratio has increased from 47.3% to 96.5% over the past 5 years.

Debt Coverage: HME's debt is well covered by operating cash flow (95.8%).

Interest Coverage: HME's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Hemisphere Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HME's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HME's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HME's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

  • Explore strong dividend paying companies in the Energy industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

11.7yrs

Average management tenure


CEO

Don Simmons (43 yo)

13.92yrs

Tenure

CA$317,601

Compensation

Mr. Don J. Simmons, B.Sc., P.Geol, has been the Chief Executive Officer and President of Hemisphere Energy Corporation (a/k/a Northern Hemisphere Development Corp.) since February 2008. Mr. Simmons served...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD253.90K) is above average for companies of similar size in the Canadian market ($USD160.35K).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HME's management team is seasoned and experienced (11.7 years average tenure).


Board Members

Experienced Board: HME's board of directors are seasoned and experienced ( 14.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HME insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.2%.


Top Shareholders

Company Information

Hemisphere Energy Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Hemisphere Energy Corporation
  • Ticker: HME
  • Exchange: TSXV
  • Founded: 1977
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: CA$99.506m
  • Shares outstanding: 91.29m
  • Website: https://www.hemisphereenergy.ca

Number of Employees


Location

  • Hemisphere Energy Corporation
  • 905 Pender Street West
  • Suite 501
  • Vancouver
  • British Columbia
  • V6C 1L6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/19 23:37
End of Day Share Price2022/01/19 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.