Hemisphere Energy Corp (TSE:HME)
:HME
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Hemisphere Energy
(HME)
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Rating:82Outperform
Price Target:
C$3.50
▲(75.00% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial quality (high profitability and very low leverage), supported by attractive valuation (low P/E and high dividend yield). Technicals are also positive with an established uptrend and supportive momentum. The main constraint is weaker recent fundamentals, with declining TTM revenue and a sharp drop in free cash flow.
Positive Factors
Very low leverage
Extremely low debt relative to equity (debt-to-equity ~0.03) gives the company durable financial flexibility across commodity cycles. This minimizes solvency risk, preserves access to capital, and supports consistent funding of operations, maintenance capex and potential distributions over months to years.
Negative Factors
Revenue softness
Top-line momentum has softened with TTM revenue down roughly 6% and multi-period revenue weakness noted in fundamentals. Sustained revenue contraction can limit scale, reduce scope for reinvestment, and pressure long-run production funding and reserve development plans without corrective action.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low debt relative to equity (debt-to-equity ~0.03) gives the company durable financial flexibility across commodity cycles. This minimizes solvency risk, preserves access to capital, and supports consistent funding of operations, maintenance capex and potential distributions over months to years.
Read all positive factors
Hemisphere Energy (HME) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$281.95M
Dividend Yield8.04%
Average Volume (3M)103.97K
Price to Earnings (P/E)8.4
Beta (1Y)0.08
Revenue Growth-9.76%
EPS Growth-21.70%
CountryCA
Employees9
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.28
Shares Outstanding94,297,905
10 Day Avg. Volume113,639
30 Day Avg. Volume103,966
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)2.34
Price to Sales (P/S)2.01
P/FCF Ratio5.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.25
Revenue Forecast (FY)C$84.20M
Hemisphere Energy Business Overview & Revenue Model
Company Description
Hemisphere Energy Corporation acquires, explores for, develops, and produces petroleum and natural gas interests in Canada. It primarily owns a 100% working interest in 9,440 net acres of land in the Atlee Buffalo property located in southeastern ...
How the Company Makes Money
HME primarily makes money by selling the crude oil it produces from its Alberta operations. Revenue is largely a function of (1) production volumes and (2) realized commodity prices, which are influenced by benchmark oil prices and applicable diff...
Hemisphere Energy Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.86M | 99.94M | 67.70M | 96.70M | 43.14M |
| Gross Profit | 45.38M | 49.86M | 42.51M | 50.39M | 22.56M |
| EBITDA | 50.24M | 54.72M | 42.21M | 38.63M | 13.42M |
| Net Income | 28.01M | 33.10M | 24.20M | 21.32M | 4.17M |
Balance Sheet | |||||
| Total Assets | 121.12M | 111.33M | 90.74M | 78.02M | 67.12M |
| Cash, Cash Equivalents and Short-Term Investments | 19.51M | 12.55M | 7.19M | 152.00K | -2.15M |
| Total Debt | 2.96M | 3.79M | 3.40M | 3.94M | 18.09M |
| Total Liabilities | 40.53M | 36.95M | 29.51M | 25.02M | 41.31M |
| Stockholders Equity | 80.59M | 74.38M | 61.22M | 53.00M | 25.81M |
Cash Flow | |||||
| Free Cash Flow | 34.12M | 35.16M | 27.37M | 27.97M | 7.44M |
| Operating Cash Flow | 48.16M | 46.55M | 44.24M | 45.09M | 18.37M |
| Investing Cash Flow | -18.47M | -20.27M | -19.46M | -18.85M | -8.28M |
| Financing Cash Flow | -22.73M | -20.92M | -17.75M | -26.09M | -10.52M |
Hemisphere Energy Technical Analysis
Positive
2.00
Price Trends
2.74
Positive
2.39
Positive
2.18
Positive
Market Momentum
0.06
Positive
58.58
Neutral
60.32
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 2 is below the 20-day moving average (MA) of 2.88, below the 50-day MA of 2.74, and below the 200-day MA of 2.18, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 60.32 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$281.95M | 8.39 | 33.26% | 8.04% | -9.76% | -21.70% | |
75 Outperform | C$317.18M | 12.19 | 7.78% | ― | -1.94% | -33.43% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | C$330.41M | -3.59 | 2.51% | ― | 17.24% | -88.10% | |
57 Neutral | C$388.81M | -25.13 | -7.90% | ― | ― | 50.36% | |
49 Neutral | C$371.56M | -47.35 | -6.08% | ― | ― | 10.81% | |
42 Neutral | C$250.54M | -44.80 | -36.68% | ― | ― | -27.99% |
* Energy Sector Average
TSE:HME
Hemisphere Energy
2.95
1.36
86.00%
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Hemisphere Energy Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hemisphere Energy Boosts Shareholder Returns on Record Heavy Oil Output
Positive
Apr 15, 2026
Hemisphere Energy has approved a further special dividend of $0.03 per share, citing robust oil prices and steady early 2026 production of about 3,800 boe/d, almost entirely heavy oil. The payout, on top of a previously announced special dividend ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Hemisphere Energy Boosts Shareholder Returns With Special Dividend and Strong 2025 Reserves
Positive
Mar 11, 2026
Hemisphere Energy has declared a special dividend of $0.03 per share, citing higher crude prices, a strong financial position, and positive performance outlook, on top of its existing quarterly base dividend. The move underscores the company’...
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.