Hemisphere Energy Corporation

TSXV:HME Stock Report

Market Cap: CA$182.4m

Hemisphere Energy Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HME (CA$1.84) is trading above our estimate of fair value (CA$0.88)

Significantly Below Fair Value: HME is trading above our estimate of fair value.


Key Valuation Metric

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

Key metric: As HME is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HME. This is calculated by dividing HME's market cap by their current earnings.
What is HME's PE Ratio?
PE Ratio6x
EarningsCA$29.74m
Market CapCA$182.38m

Price to Earnings Ratio vs Peers

How does HME's PE Ratio compare to its peers?

The above table shows the PE ratio for HME vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.9x
ALV Alvopetro Energy
8.8x81.7%CA$184.3m
PRQ Petrus Resources
4.1xn/aCA$177.0m
JOY Journey Energy
26.5x27.0%CA$134.9m
IPO InPlay Oil
8x-7.4%CA$150.5m
HME Hemisphere Energy
6x-11.2%CA$182.4m

Price-To-Earnings vs Peers: HME is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (11.9x).


Price to Earnings Ratio vs Industry

How does HME's PE Ratio compare vs other companies in the CA Oil and Gas Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HAM Highwood Asset Management
1.2x-41.1%US$62.31m
ALPS.U Alpine Summit Energy Partners
1xn/aUS$24.02m
KUB.H Carcetti Capital
0.7xn/aUS$5.82m
GCOM Green Shift Commodities
1.2xn/aUS$3.87m
HME 6.0xIndustry Avg. 10.6xNo. of Companies12PE0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HME is good value based on its Price-To-Earnings Ratio (6x) compared to the Canadian Oil and Gas industry average (10.5x).


Price to Earnings Ratio vs Fair Ratio

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

HME PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio6.5x

Price-To-Earnings vs Fair Ratio: HME is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (6.5x).


Analyst Price Targets

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

The above table shows the analyst HME forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$1.84
CA$2.60
+41.3%
19.2%CA$3.10CA$2.10n/a2
Dec ’25CA$1.88
CA$2.60
+38.3%
19.2%CA$3.10CA$2.10n/a2
Nov ’25CA$1.84
CA$2.60
+41.3%
19.2%CA$3.10CA$2.10n/a2
Oct ’25CA$1.97
CA$2.55
+29.4%
21.6%CA$3.10CA$2.00n/a2
Sep ’25CA$1.82
CA$2.60
+42.9%
23.1%CA$3.20CA$2.00n/a2
Aug ’25CA$1.76
CA$2.60
+47.7%
23.1%CA$3.20CA$2.00n/a2
Jul ’25CA$1.78
CA$2.45
+37.6%
22.4%CA$3.00CA$1.90n/a2
Jun ’25CA$1.67
CA$2.45
+46.7%
22.4%CA$3.00CA$1.90n/a2
May ’25CA$1.62
CA$2.45
+51.2%
22.4%CA$3.00CA$1.90n/a2
Apr ’25CA$1.64
CA$2.40
+46.3%
25.0%CA$3.00CA$1.80n/a2
Mar ’25CA$1.54
CA$2.40
+55.8%
25.0%CA$3.00CA$1.80n/a2
Feb ’25CA$1.37
CA$2.40
+75.2%
25.0%CA$3.00CA$1.80n/a2
Jan ’25CA$1.29
CA$2.50
+93.8%
20.0%CA$3.00CA$2.00n/a2
Dec ’24CA$1.30
CA$2.50
+92.3%
20.0%CA$3.00CA$2.00CA$1.882
Nov ’24CA$1.33
CA$2.50
+88.0%
20.0%CA$3.00CA$2.00CA$1.842
Oct ’24CA$1.30
CA$2.50
+92.3%
20.0%CA$3.00CA$2.00CA$1.972
Sep ’24CA$1.30
CA$2.13
+63.5%
5.9%CA$2.25CA$2.00CA$1.822
Aug ’24CA$1.32
CA$2.50
+89.4%
20.0%CA$3.00CA$2.00CA$1.762
Jul ’24CA$1.22
CA$2.50
+104.9%
20.0%CA$3.00CA$2.00CA$1.782
Jun ’24CA$1.27
CA$2.50
+96.9%
20.0%CA$3.00CA$2.00CA$1.672
May ’24CA$1.27
CA$2.50
+96.9%
20.0%CA$3.00CA$2.00CA$1.622

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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