TSXV:HOCL

Stock Analysis Report

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Executive Summary

Highwood Oil Company Ltd. engages in the acquisition, exploration, development, and production of oil and gas reserves in Western Canada. More Details


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Highwood Oil's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: Insufficient data to determine HOCL's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine HOCL's volatility change over the past year.


Market Performance


7 Day Return

-8.6%

HOCL

-2.0%

CA Oil and Gas

-0.2%

CA Market


1 Year Return

-64.3%

HOCL

-24.4%

CA Oil and Gas

1.4%

CA Market

Return vs Industry: HOCL underperformed the Canadian Oil and Gas industry which returned -24.4% over the past year.

Return vs Market: HOCL underperformed the Canadian Market which returned 1.4% over the past year.


Shareholder returns

HOCLIndustryMarket
7 Day-8.6%-2.0%-0.2%
30 Day-20.0%5.5%2.8%
90 Day-60.4%23.4%12.4%
1 Year-64.3%-64.3%-20.0%-24.4%5.0%1.4%
3 Yearn/a-21.2%-30.9%13.4%2.7%
5 Yearn/a-4.2%-21.2%59.7%35.2%

Long-Term Price Volatility Vs. Market

How volatile is Highwood Oil's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Highwood Oil undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Highwood Oil is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Highwood Oil has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of HOCL's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don't know where to start, we recommend reading through Highwood Oil regulatory filings.
  • Explore potentially undervalued companies in the Energy industry.

Future Growth

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

62.2%

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 Highwood Oil 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.


Next Steps

Past Performance

How has Highwood Oil performed over the past 5 years?

-73.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HOCL is currently unprofitable.

Growing Profit Margin: HOCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HOCL is unprofitable, and losses have increased over the past 5 years at a rate of 73.3% per year.

Accelerating Growth: Unable to compare HOCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HOCL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-52.6%).


Return on Equity

High ROE: HOCL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Highwood Oil's financial position?


Financial Position Analysis

Short Term Liabilities: HOCL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: HOCL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: HOCL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: HOCL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HOCL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: HOCL has less than a year of cash runway if free cash flow continues to reduce at historical rates of 5.8% each year


Next Steps

Dividend

What is Highwood Oil current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate HOCL'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 HOCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HOCL'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 HOCL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Greg MacDonald (40 yo)

3.58yrs

Tenure

CA$697,127

Compensation

Mr. Gregory A. MacDonald, also known as Greg, serves as President and Chief Executive Officer at Highwood Oil Company Ltd. since June 15, 2017 and also serves as Director at Highwood Oil Company Ltd. Since...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD547.81K) is above average for companies of similar size in the Canadian market ($USD152.85K).

Compensation vs Earnings: Greg's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory MacDonald
President3.58yrsCA$697.13k5.18%
CA$ 2.0m
Graydon Glans
CFO & Corporate Secretary5.58yrsCA$697.13k0.33%
CA$ 127.2k
Kelly McDonald
Vice President of Exploration3.92yrsCA$697.13k0.32%
CA$ 121.6k

3.9yrs

Average Tenure

Experienced Management: HOCL's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory MacDonald
President3.58yrsCA$697.13k5.18%
CA$ 2.0m
Trevor Wong-Chor
Independent Director2yrsCA$57.67k0.063%
CA$ 24.2k
Arif Shivji
Independent Director2yrsCA$57.67k1%
CA$ 386.4k
Stephen Holyoake
Independent Chairman of the Board2yrsCA$57.67k2.49%
CA$ 957.4k

2.0yrs

Average Tenure

46yo

Average Age

Experienced Board: HOCL's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Highwood Oil Company Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highwood Oil Company Ltd.
  • Ticker: HOCL
  • Exchange: TSXV
  • Founded: 2012
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: CA$38.489m
  • Shares outstanding: 6.01m
  • Website: https://www.highwoodoil.com

Number of Employees


Location

  • Highwood Oil Company Ltd.
  • 222 – 3rd Avenue SW
  • Suite 900
  • Calgary
  • Alberta
  • T2P 0B4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOCLTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2019

Biography

Highwood Oil Company Ltd. engages in the acquisition, exploration, development, and production of oil and gas reserves in Western Canada. It focuses on developing its own prospects, acquire oil and natural...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 00:13
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.