Hemisphere Energy (HME) AI Stock Analysis

Hemisphere Energy

(TSXV:HME)

Select Model

Rating:75Outperform

Price Target:CAD 2.50▲(8.23% Upside)

Action:reiterated

Date:08/28/26

The score is driven primarily by strong financial performance (high profitability and a conservatively positioned balance sheet) and attractive valuation (low P/E and high dividend yield). Offsetting these positives, technical signals are weak with the stock trading below key moving averages and negative MACD, despite RSI indicating oversold conditions.

Positive Factors

Very Low LeverageA conservatively financed balance sheet reduces refinancing and solvency risk during oil-price downturns. Minimal leverage also gives Hemisphere greater flexibility to sustain operations, fund development, or return capital while peers with heavier debt may need to cut investment.

Negative Factors

Volatile Revenue ProfileThe uneven revenue path highlights exposure to oil prices, production volumes, and crude differentials. Even with a recent rebound, recurring variability can complicate capital planning and make future earnings less predictable than the current profitability profile suggests.

Hemisphere Energy (HME) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 217.72M
Dividend Yield: 6.93%
Average Volume (3M): 174.80K
Price to Earnings (P/E): 6.8
Beta (1Y): -0.04
Revenue Growth: 1.90%
EPS Growth: 4.58%
Country: Canada
Employees: 9
Sector: General
Sector Strength: 55
Industry: Oil & Gas Exploration & Production

Hemisphere Energy Business Overview & Revenue Model

Company Description

Hemisphere Energy Corporation is a Canadian firm engaged in the acquisition, exploration, development, and production of petroleum and natural gas assets. The company's principal landholdings are situated in southeastern Alberta, where it holds a 100...

How the Company Makes Money

Hemisphere Energy primarily makes money by producing and selling crude oil from its Alberta assets. Revenue is generated from the volume of oil produced multiplied by realized sales prices, which are influenced by benchmark oil prices and the quality...

Hemisphere Energy Financial Statement Overview

Summary

Overall financials are strong, supported by high profitability and a very low-leverage balance sheet. Cash flow remains positive, but free-cash-flow conversion has weakened in the TTM period and revenue has been volatile, which adds cyclicality risk.

Income Statement

83Very Positive

Balance Sheet

90Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	90.83M	93.86M	99.94M	67.70M	96.70M	43.14M
Gross Profit	51.64M	45.38M	49.86M	42.51M	50.39M	22.56M
EBITDA	57.00M	50.44M	54.72M	42.41M	38.63M	13.42M
Net Income	32.43M	28.01M	33.10M	24.20M	21.32M	4.17M
Balance Sheet
Total Assets	118.89M	121.12M	111.33M	90.74M	78.02M	67.12M
Cash, Cash Equivalents and Short-Term Investments	16.09M	19.51M	12.55M	7.19M	152.00K	-2.15M
Total Debt	2.57M	2.96M	3.79M	3.40M	3.94M	18.09M
Total Liabilities	29.27M	40.53M	36.95M	29.51M	25.02M	41.31M
Stockholders Equity	89.62M	80.59M	74.38M	61.22M	53.00M	25.81M
Cash Flow
Free Cash Flow	18.08M	34.12M	35.16M	27.37M	27.97M	7.44M
Operating Cash Flow	34.13M	48.16M	46.55M	44.24M	45.09M	18.37M
Investing Cash Flow	-18.27M	-18.47M	-20.27M	-19.46M	-18.85M	-8.28M
Financing Cash Flow	-22.92M	-22.73M	-20.92M	-17.75M	-26.09M	-10.52M

Hemisphere Energy Technical Analysis

Technical Analysis SentimentPositive

Last Price2.31

Price Trends

50DMA2.29Positive

100DMA2.42Negative

200DMA2.45Negative

Market Momentum

MACD0.00Negative

RSI54.53Neutral

STOCH69.94Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HME, the sentiment is Positive. The current price of 2.31 is above the 20-day moving average (MA) of 2.27, above the 50-day MA of 2.29, and below the 200-day MA of 2.45, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HME.

Hemisphere Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TSE:HME against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:KEI	76Outperform	CAD 360.73M	13.21	9.33%	―	23.27%	-0.84%
TSE:HME	75Outperform	CAD 217.72M	6.82	38.81%	6.93%	1.90%	4.58%
TSE:RBY	56Neutral	CAD 426.31M	16.81	7.79%	―	15.04%	-61.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TSE:SEI	50Neutral	CAD 201.29M	-11.01	-21.26%	―	―	―
TSE:RECO	43Neutral	CAD 213.15M	-11.58	-6.71%	―	―	45.08%

* General Sector Average

Performance Comparison

TSE:HME and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:HME	Hemisphere Energy	2.31	0.33	16.67%
TSE:KEI	Kolibri Global Energy Inc.	10.07	4.11	68.96%
TSE:RECO	Reconnaissance Energy Africa Ltd.	0.52	-0.01	-1.89%
TSE:SEI	Sintana Energy	0.36	-0.16	-30.77%
TSE:RBY	Rubellite Energy Inc	4.54	1.90	71.97%

Hemisphere Energy Corporate Events

Business Operations and StrategyFinancial Disclosures

Hemisphere Energy Halts Guidance After Fire Shuts Major Heavy Oil Facility

Negative

Aug 27, 2026

Hemisphere Energy has reported a fire at its largest oil battery located at the Atlee Buffalo property in Alberta, which was contained within the lease and caused no injuries. Emergency protocols were activated and the blaze has been extinguished, bu...

Business Operations and StrategyStock BuybackDividendsFinancial Disclosures

Hemisphere Energy Posts Record Q2 Results and Boosts Shareholder Returns

Positive

Aug 20, 2026

Hemisphere Energy reported record second-quarter 2026 financial results, including revenue of $33.6 million, strong operating netbacks of nearly $68 per barrel of oil equivalent and free funds flow of $14.2 million, supported by high heavy oil prices...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Hemisphere Energy AI Stock Analysis