Hammerhead Energy Inc.

NasdaqCM:HHRS Stock Report

Market Cap: US$1.5b

Hammerhead Energy Valuation

Is HHRS 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 HHRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HHRS ($15.32) is trading below our estimate of fair value ($32.8)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HHRS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.1x
Enterprise Value/EBITDA4.4x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HHRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.8x
KRP Kimbell Royalty Partners
4.1x4.0%US$1.6b
DMLP Dorchester Minerals
8.1xn/aUS$1.3b
CPE Callon Petroleum
1x4.8%US$2.4b
SBR Sabine Royalty Trust
9.8xn/aUS$910.5m
HHRS Hammerhead Energy
2.7x13.4%US$1.5b

Price-To-Sales vs Peers: HHRS is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (3.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.8%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a5.8%
n/an/an/a
No more companies

Price-To-Sales vs Industry: HHRS is expensive based on its Price-To-Sales Ratio (2.7x) compared to the US Oil and Gas industry average (1.7x).


Price to Sales Ratio vs Fair Ratio

What is HHRS'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.

HHRS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: HHRS is good value based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).


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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