Hemisphere Energy (HME) AI Stock Analysis

• Market Cap: C$184.52M
• Dividend Yield: 8.04%
• Average Volume (3M): 103.97K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.39
• Revenue Growth: 2.27%
• EPS Growth: 3.61%
• Country: CA
• Employees: 9
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.07
• Shares Outstanding: 94,626,700
• 10 Day Avg. Volume: 113,639
• 30 Day Avg. Volume: 103,966
• PEG Ratio: 0.13
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.80
• P/FCF Ratio: 5.11
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$2.00 ▲(0.00% Upside)

Hemisphere Energy's strong financial performance and attractive valuation are the most significant factors contributing to the score. However, bearish technical indicators suggest caution, as the stock shows weak momentum. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation Ability

Strong cash generation supports financial flexibility, enabling reinvestment and potential shareholder returns, enhancing long-term stability.

Balance Sheet Health

Minimal leverage and financial risk provide a stable foundation for growth and resilience against market fluctuations.

Profitability

Strong profitability indicates efficient operations and the ability to sustain earnings, supporting long-term value creation.

Negative Factors

Revenue Decline

Declining revenue may indicate challenges in market demand or competitive pressures, potentially impacting future growth.

Revenue Growth Challenges

Sustained revenue growth challenges could hinder long-term expansion and market share gains, affecting overall business health.

Market Conditions

Dependence on volatile oil and gas prices can lead to earnings instability, necessitating effective risk management strategies.

Hemisphere Energy Business Overview & Revenue Model

Company Description

Hemisphere Energy (HME) is a Canadian oil and gas company focused on the exploration and production of oil and natural gas in the Western Canadian Sedimentary Basin. With a commitment to operational efficiency and sustainability, Hemisphere Energy primarily engages in the development of its assets, leveraging advanced technologies to enhance production and optimize resource extraction. The company aims to create long-term value for its shareholders while maintaining a focus on environmental stewardship.

How the Company Makes Money

Hemisphere Energy generates revenue primarily through the sale of crude oil and natural gas. The company utilizes a revenue model based on the production and sale of hydrocarbons, where it sells its output to various markets, benefiting from favorable pricing conditions. Key revenue streams include direct sales to refineries, natural gas processing plants, and spot market transactions. Additionally, partnerships with local and regional distributors enhance its market reach and efficiency. The company may also benefit from hedging strategies to protect against price volatility in oil and gas markets, which can contribute to more stable earnings over time.

Hemisphere Energy Financial Statement Overview

Summary

Hemisphere Energy exhibits strong financial health with robust profitability and effective capital management. The company maintains a low debt-to-equity ratio and impressive return on equity. However, challenges in maintaining cash flow growth and a slight decline in gross profit margin require attention.

Income Statement

Hemisphere Energy demonstrates strong profitability with a high net profit margin of 35.25% TTM and consistent revenue growth. The gross profit margin remains robust, indicating effective cost management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.045 TTM, reflecting prudent financial leverage. Return on equity is impressive at 47.09%, showcasing effective use of equity capital. The equity ratio indicates a solid equity base, though the slight increase in debt warrants monitoring.

Cash Flow

Operating cash flow is strong, with a high coverage ratio of 3.15 TTM. However, the negative free cash flow growth rate of -4.03% TTM suggests challenges in maintaining cash flow levels. The free cash flow to net income ratio remains healthy, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.15M	99.94M	67.70M	96.70M	43.14M	18.66M
Gross Profit	48.35M	49.86M	42.51M	50.39M	22.56M	6.26M
EBITDA	52.17M	54.72M	42.21M	38.63M	13.42M	7.87M
Net Income	30.27M	33.10M	24.20M	21.32M	4.17M	-3.46M
Balance Sheet
Total Assets	122.76M	111.33M	90.74M	78.02M	67.12M	52.48M
Cash, Cash Equivalents and Short-Term Investments	25.90M	12.55M	7.19M	152.00K	-2.15M	435.35K
Total Debt	3.19M	3.79M	3.40M	3.94M	18.09M	25.31M
Total Liabilities	43.80M	36.95M	29.51M	25.02M	41.31M	36.17M
Stockholders Equity	78.96M	74.38M	61.22M	53.00M	25.81M	16.31M
Cash Flow
Free Cash Flow	45.67M	35.16M	27.37M	27.97M	7.44M	8.59M
Operating Cash Flow	55.58M	46.55M	44.24M	45.09M	18.37M	9.39M
Investing Cash Flow	-17.40M	-20.27M	-19.46M	-18.85M	-8.28M	-1.87M
Financing Cash Flow	-26.00M	-20.92M	-17.75M	-26.09M	-10.52M	-8.26M

Hemisphere Energy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.07, and above the 200-day MA of 1.87, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 19.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:HME.

Hemisphere Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RBY	72 Outperform	C$212.47M	4.15	17.46%	―	74.76%	7.44%
HME	71 Outperform	C$184.52M	6.36	39.64%	8.04%	2.27%	3.61%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
KEI	64 Neutral	C$181.03M	7.68	9.49%	―	12.17%	6.99%
RECO	49 Neutral	C$285.22M	-11.52	-10.23%	―	―	―
SEI	36 Underperform	C$176.17M	-12.40	-49.86%	―	―	-27.99%
FO	36 Underperform	C$221.83M	-56.94	-6.71%	―	―	-5.88%

Hemisphere Energy Corporate Events

Hemisphere Energy Reports Q3 2025 Results and Declares Dividend

Hemisphere Energy Corporation reported its financial and operational results for the third quarter of 2025, highlighting a production rate of 3,571 boe/d, predominantly heavy oil, and generating $23.1 million in revenue. The company declared a quarterly dividend and provided an update on its operations, including a fall drilling program and share repurchase activities. Despite a decrease in revenue compared to the previous year, Hemisphere maintained a positive working capital position and continued to return value to shareholders through dividends and share buybacks. These results underscore Hemisphere’s strategic focus on optimizing its heavy oil production and maintaining financial stability, which could enhance its positioning in the energy market.