Hemisphere Energy (HME) AI Stock Analysis

• Market Cap: C$164.54M
• Dividend Yield: 5.88%
• Average Volume (3M): 92.03K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.51
• Revenue Growth: 17.74%
• EPS Growth: 40.78%
• Country: CA
• Employees: 9
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.34
• Shares Outstanding: 96,786,750
• 10 Day Avg. Volume: 64,357
• 30 Day Avg. Volume: 92,031
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Hemisphere Energy's overall score reflects robust financial performance with significant revenue and profit growth, an attractive valuation, and positive corporate events highlighting strategic growth. While technical analysis shows a neutral trend, the company's strong financial health and strategic positioning in the oil and gas sector support its positive outlook.

Hemisphere Energy Business Overview & Revenue Model

Company Description

Hemisphere Energy (HME) is a Canadian-based oil and gas exploration and production company. Operating primarily in British Columbia, the company focuses on developing and optimizing oil and gas assets to maximize production and efficiency. Hemisphere Energy employs advanced technologies and innovative strategies to enhance the value of its assets while maintaining a commitment to environmental sustainability and safety.

How the Company Makes Money

Hemisphere Energy generates revenue primarily through the exploration, development, and production of oil and natural gas. The company sells its hydrocarbon products in the commodity markets, where prices are influenced by global supply and demand dynamics. Key revenue streams include the sale of crude oil, natural gas, and natural gas liquids. Hemisphere Energy may also engage in strategic partnerships and joint ventures to expand its exploration and production capabilities, thereby increasing its potential revenue. Additionally, the company focuses on optimizing its existing assets to improve production efficiency and reduce operational costs, contributing to its overall profitability.

Hemisphere Energy Financial Statement Overview

Summary

Hemisphere Energy demonstrates strong financial health with robust profitability, effective cash flow management, and low leverage. The company shows significant revenue growth, but there are concerns about cost pressures and capital expenditures impacting future cash reserves.

Income Statement

Hemisphere Energy has demonstrated strong profitability with a TTM gross profit margin of 48.9% and a net profit margin of 33.5%. The company has shown significant revenue growth of 31.2% from the previous year, indicating a positive trajectory. The EBIT and EBITDA margins are robust at 39.1% and 57.3%, respectively. However, the decline in gross profit margins from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects prudent financial management with a low debt-to-equity ratio of 0.06, indicating low leverage. The return on equity stands at an impressive 40.3%, showcasing efficient use of equity to generate profits. The equity ratio at 65.9% suggests a strong equity base. Despite these strengths, the company's assets have increased relatively slowly compared to liabilities.

Cash Flow

Cash flow analysis shows a healthy operating cash flow to net income ratio of 1.60, indicating strong cash generation relative to net income. The free cash flow growth rate is 11.4%, reflecting positive cash flow management. The free cash flow to net income ratio of 1.03 aligns with robust free cash flow generation. Nonetheless, the capital expenditures remain significant, which could impact future cash reserves.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
67.70M	96.70M	43.14M	18.66M	31.51M
	Gross Profit
42.51M	50.39M	22.56M	6.26M	14.40M
	EBIT
37.04M	37.37M	15.06M	2.95M	10.52M
	EBITDA
42.21M	38.63M	13.42M	7.87M	16.25M
	Net Income Common Stockholders
24.20M	21.32M	4.17M	-3.46M	-1.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.19M	152.00K	-2.15M	435.35K	1.18M
	Total Assets
90.74M	78.02M	67.12M	52.48M	61.52M
	Total Debt
3.40M	3.94M	18.09M	25.31M	33.13M
	Net Debt
-3.79M	3.79M	20.67M	24.88M	31.95M
	Total Liabilities
29.51M	25.02M	41.31M	36.17M	43.46M
	Stockholders Equity
61.22M	53.00M	25.81M	16.31M	18.06M
Cash Flow		Free Cash Flow
27.37M	27.97M	7.44M	8.59M	8.31M
	Operating Cash Flow
44.24M	45.09M	18.37M	9.39M	10.50M
	Investing Cash Flow
-19.46M	-18.85M	-8.28M	-1.87M	-11.46M
	Financing Cash Flow
-17.75M	-26.09M	-10.52M	-8.26M	357.86K

Hemisphere Energy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HME, the sentiment is Negative. The current price of 1.7 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.75, and below the 200-day MA of 1.74, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HME.

Hemisphere Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	81 Outperform	C$164.54M	5.04	48.82%	5.88%	17.74%	40.78%
RBY	72 Outperform	C$167.22M	5.18	13.98%	―	83.19%	-43.74%
PRQ	62 Neutral	C$160.61M	3.97	-0.40%	9.52%	-25.10%	-102.44%
ORC.B	60 Neutral	$159.73M	11.22	4.25%	13.28%	-14.83%	-56.24%
TPL	56 Neutral	$188.37M	―	-37.91%	―	-57.65%	-232.60%
Sector *	56 Neutral	$7.01B	3.42	-4.36%	5.89%	-0.10%	-48.37%
RECO	49 Neutral	C$155.75M	―	-15.78%	―	-100.00%	61.24%

Hemisphere Energy Corporate Events

Hemisphere Energy Achieves Record Production and Revenue Growth in 2024

Hemisphere Energy reported a successful 2024 with a 10% increase in annual production, reaching a record 3,436 boe/d, and an 18% rise in annual revenue to $99.9 million. The company invested significantly in drilling and facility upgrades, resulting in a positive working capital position and increased dividends to shareholders. These results underscore Hemisphere’s strong operational performance and strategic investments, enhancing its market position and delivering value to stakeholders.

Spark’s Take on TSE:HME Stock

According to Spark, TipRanks’ AI Analyst, TSE:HME is a Outperform.

Hemisphere Energy’s overall stock score reflects strong financial performance and attractive valuation with a promising growth strategy. The company’s stable technical indicators and positive corporate events further support its favorable position in the fossil fuels industry. However, attention to cost management and capital expenditures is necessary to sustain long-term growth.

To see Spark’s full report on TSE:HME stock, click here.

Hemisphere Energy Announces Special Dividend Amid Strong Performance

Hemisphere Energy Corporation has announced a special dividend of C$0.03 per common share, reflecting its strong financial position and performance outlook. This special dividend, payable on April 28, 2025, is in addition to the company’s quarterly base dividend, highlighting Hemisphere’s commitment to delivering shareholder value and its robust market positioning.

Hemisphere Energy Reports $317 Million in Proved Reserves and Strong Financial Performance

Hemisphere Energy announced a significant increase in its proved reserves, valued at $317 million, with a net asset value of $3.21 per fully diluted share. The company’s strategic investments in enhanced oil recovery projects and infrastructure have led to a 13% growth in proved developed producing reserves and a 10% increase in annual production. Hemisphere’s financial health is bolstered by over $21 million in shareholder returns and a cash position of over $5 million. The company’s reserves have been recognized for their high value and low decline rates, positioning Hemisphere for continued growth and significant free cash flow generation.