Hemisphere Energy (HME) AI Stock Analysis

• Market Cap: C$187.00M
• Dividend Yield: 9.74%
• Average Volume (3M): 74.60K
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.55
• Revenue Growth: 22.64%
• EPS Growth: 44.49%
• Country: CA
• Employees: 9
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): N/A
• Shares Outstanding: 95,897,880
• 10 Day Avg. Volume: 61,975
• 30 Day Avg. Volume: 74,599
• PEG Ratio: 0.90
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.96
• 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: C$2.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: C$2.00 ▲(2.56%Upside)

Hemisphere Energy's stock is rated highly due to its robust financial performance, attractive valuation, and positive technical indicators. The company's strategic initiatives, such as special dividends and share buybacks, further enhance shareholder value. While technical analysis indicates potential overbought conditions, the overall outlook remains positive.

Hemisphere Energy Business Overview & Revenue Model

Company Description

Hemisphere Energy Corporation (HME) is a Canadian oil and gas company focused on the exploration, development, and production of conventional oil assets in Western Canada. The company operates in the energy sector, with core activities centered around extracting and producing hydrocarbons to meet regional energy demands. Hemisphere Energy is committed to maximizing the value of its assets through efficient operations and strategic investments in its core operating areas.

How the Company Makes Money

Hemisphere Energy makes money through the exploration, development, and production of oil and natural gas. The company's primary revenue streams include the sale of crude oil and natural gas extracted from its assets in Western Canada. Revenue is generated by selling these hydrocarbons to refineries and other buyers at market prices. Hemisphere Energy's earnings are influenced by factors such as commodity prices, production volumes, and operational efficiencies. Additionally, the company may engage in strategic partnerships or joint ventures to enhance its production capabilities and expand its asset base, contributing to its overall revenue.

Hemisphere Energy Financial Statement Overview

Summary

Hemisphere Energy demonstrates strong financial health with substantial revenue and profit growth, efficient operations, low leverage, and strong cash flow generation. These factors contribute to a positive outlook, though the industry risks inherent to oil and gas remain a consideration.

Income Statement

Hemisphere Energy showcases strong revenue growth with a TTM revenue of $100.06M up from $99.94M annually, reflecting healthy demand. Gross profit margin remains robust at 47.2%, and net profit margin improved to 35.2%, indicating solid profitability. EBIT and EBITDA margins are also impressive at 50.6% and 58.0%, respectively, highlighting efficient operations. The company's consistent revenue and profit growth signals a positive trajectory.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.04, indicative of low leverage. Return on equity is substantial at 44.3%, showcasing effective use of equity capital. Equity ratio is favorable at 67.5%, demonstrating a stable financial structure. The company maintains healthy liquidity with significant cash reserves, supporting operational flexibility.

Cash Flow

Operating cash flow is robust at $60.05M, with a notable free cash flow growth rate of 33.0% TTM. The operating cash flow to net income ratio stands at 1.70, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also healthy at 1.33, highlighting strong cash conversion. These metrics underscore the company's strong cash flow management and financial health.

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

Hemisphere Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.95 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.84, and above the 200-day MA of 1.77, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.88 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HME	81 Outperform	C$187.00M	5.38	48.97%	9.74%	22.64%	44.49%
RBY	72 Outperform	C$194.25M	2.80	21.76%	―	83.19%	-43.74%
ORC.B	68 Neutral	C$165.29M	11.45	-30.30%	12.26%	12.88%	-772.07%
PRQ	62 Neutral	C$187.97M	169.05	0.33%	8.28%	-21.04%	-96.30%
TPL	56 Neutral	C$109.11M	―	-34.33%	―	-57.65%	-232.60%
Sector *	52 Neutral	C$2.96B	-1.55	-3.48%	6.54%	3.13%	-49.39%
RECO	49 Neutral	C$142.82M	―	-14.82%	―	-100.00%	61.24%

Hemisphere Energy Corporate Events

Hemisphere Energy Announces Special Dividend Amid Strong Financial Performance

Hemisphere Energy Corporation has announced a special dividend of $0.03 per common share, reflecting its strong financial position and performance outlook. The dividend, payable on August 15, 2025, is part of the company’s commitment to delivering shareholder value, supported by its high-margin EOR assets and robust financial health. This marks the second special dividend in 2025, contributing to a total capital return of $12.2 million to shareholders, funded entirely by free cash flow.

The most recent analyst rating on (TSE:HME) stock is a Buy with a C$2.35 price target. To see the full list of analyst forecasts on Hemisphere Energy stock, see the TSE:HME Stock Forecast page.

Hemisphere Energy Renews Share Buyback Program

Hemisphere Energy Corporation has announced the renewal of its Normal Course Issuer Bid (NCIB), allowing the company to purchase up to 10% of its public float, or 7,934,731 common shares, for cancellation. This move is aimed at increasing shareholder value by buying back shares when market prices do not reflect the company’s intrinsic value, thereby benefiting remaining shareholders.

The most recent analyst rating on (TSE:HME) stock is a Buy with a C$2.35 price target. To see the full list of analyst forecasts on Hemisphere Energy stock, see the TSE:HME Stock Forecast page.

Hemisphere Energy Reports Shareholder Meeting Results

Hemisphere Energy Corporation announced the results of its Annual General and Special Meeting of Shareholders, where 43.07% of total shares were voted. Shareholders approved all items on the agenda, including setting the number of directors at six, electing board members, reappointing KPMG LLP as auditors, and approving both the Amended and Restated Stock Option Plan and the Bonus Award Incentive Plan. The meeting’s outcomes are expected to support the company’s strategic initiatives and enhance shareholder value.

The most recent analyst rating on (TSE:HME) stock is a Buy with a C$2.35 price target. To see the full list of analyst forecasts on Hemisphere Energy stock, see the TSE:HME Stock Forecast page.

Hemisphere Energy Reports Record Q1 Production and Declares Dividend

Hemisphere Energy Corporation reported a record quarterly production of 3,833 boe/d, predominantly heavy oil, marking a 21% increase from the previous year. The company generated $27.3 million in revenue, a 30% increase from Q1 2024, and declared a quarterly dividend of $0.025 per share. Hemisphere also renewed its credit facility, indicating a strong financial position with positive working capital of $14.1 million. The company’s strategic moves, including share repurchases and dividend payments, highlight its commitment to returning value to shareholders and maintaining a robust operational framework.

The most recent analyst rating on (TSE:HME) stock is a Buy with a C$2.35 price target. To see the full list of analyst forecasts on Hemisphere Energy stock, see the TSE:HME Stock Forecast page.