HNR Acquisition Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: HNRA ($2.6) is trading below our estimate of fair value ($55.52)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HNRA 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/Revenue3.5x
Enterprise Value/EBITDA35.6x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HNRA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.3x
MTR Mesa Royalty Trust
5.6xn/aUS$15.3m
CHKR Chesapeake Granite Wash Trust
2.4xn/aUS$19.2m
HGTX.U Hugoton Royalty Trust
18.7xn/aUS$19.6m
HUSA Houston American Energy
18.5xn/aUS$13.2m
HNRA HNR Acquisition
0.6x25.1%US$18.0m

Price-To-Sales vs Peers: HNRA is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (11.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.2%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.2%
n/an/an/a
No more companies

Price-To-Sales vs Industry: HNRA is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Oil and Gas industry average (2.1x).


Price to Sales Ratio vs Fair Ratio

What is HNRA'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.

HNRA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: HNRA is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).


Analyst Price Targets

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

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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