High Arctic Energy Services (HWO) AI Stock Analysis

• Market Cap: C$11.30M
• Dividend Yield: 377.53%
• Average Volume (3M): 3.52K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 0.63
• Revenue Growth: -86.21%
• EPS Growth: N/A
• Country: CA
• Employees: 15
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.01
• Shares Outstanding: 12,696,959
• 10 Day Avg. Volume: 2,728
• 30 Day Avg. Volume: 3,525
• PEG Ratio: -0.11
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.92
• 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$1.00
• Price Target Upside: 12.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: C$1.00 ▲(12.36%Upside)

The company's robust valuation, marked by an extremely low P/E ratio and high dividend yield, significantly boosts its attractiveness despite operational challenges. Technical analysis supports a stable outlook, while financial performance indicates a need for improved operational efficiency and revenue growth.

High Arctic Energy Services Business Overview & Revenue Model

Company Description

High Arctic Energy Services (HWO) is a Canadian company that operates in the oilfield services industry, primarily engaged in providing specialized equipment and expertise to the oil and gas sector. The company offers a range of services including drilling, completion, workover operations, and specialized wellbore services. High Arctic's operations are particularly focused on the Canadian market and the Papua New Guinea region, where they provide essential support services to maintain and enhance the productivity of oil and gas wells.

How the Company Makes Money

High Arctic Energy Services generates revenue through the provision of its specialized oilfield services. The company's primary revenue streams include contract drilling services, which involve the use of their rigs and drilling equipment to facilitate the extraction of oil and gas resources. Additionally, High Arctic earns income from their rental business, which supplies specialized equipment necessary for well completions and workover operations. The company also benefits from long-term contracts with significant oil and gas producers, ensuring a stable revenue flow. Partnerships with key players in the energy sector in regions like Papua New Guinea further bolster their financial performance by securing ongoing demand for their services.

High Arctic Energy Services Financial Statement Overview

Summary

High Arctic Energy Services faces significant operational challenges with declining revenues and negative operating margins. However, a strong equity position and cash generation capabilities offer some stability.

Income Statement

High Arctic Energy Services shows a declining trend in revenue with the most recent TTM period indicating a fall in total revenue compared to the previous year. The gross profit margin has improved slightly from the prior year, but the company remains unprofitable with a negative EBIT margin. Notably, despite the negative EBIT, the company reported a positive net income, possibly due to non-operating income or tax benefits. The consistency of negative EBIT and EBITDA margins highlights challenges in operational profitability.

Balance Sheet

The balance sheet displays a moderate level of financial leverage with a Debt-to-Equity ratio of approximately 0.21, indicating a conservative use of debt. The equity ratio stands at 71.09%, reflecting a strong equity base relative to assets. Return on Equity is challenging to assess given the positive net income in the latest TTM, contrasting with previous losses. The company's strong equity position provides some stability despite operational challenges.

Cash Flow

Cash flow analysis reveals a positive operating cash flow in the latest TTM period, with a strong Operating Cash Flow to Net Income ratio, suggesting efficient cash generation relative to net earnings. However, free cash flow has declined from the previous year, signaling potential strain in cash reserves. The Free Cash Flow to Net Income ratio is positive, indicating that the company is converting earnings into cash effectively, albeit with decreased magnitude compared to previous periods.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.47M	61.93M	80.02M	76.44M	90.80M
Gross Profit	2.61M	11.31M	-5.78M	-8.42M	-14.20M
EBITDA	724.00K	-111.00K	-9.41M	4.43M	10.40M
Net Income	28.31M	-13.14M	-36.58M	-18.61M	-25.90M
Balance Sheet
Total Assets	30.87M	123.14M	133.96M	185.45M	214.20M
Cash, Cash Equivalents and Short-Term Investments	3.12M	50.33M	19.56M	12.04M	32.60M
Total Debt	4.66M	6.35M	5.70M	16.52M	19.20M
Total Liabilities	9.76M	23.80M	18.73M	36.60M	36.90M
Stockholders Equity	21.11M	99.33M	115.23M	148.85M	177.30M
Cash Flow
Free Cash Flow	12.33M	9.26M	3.79M	-9.04M	14.80M
Operating Cash Flow	14.27M	11.22M	7.86M	-1.80M	19.70M
Investing Cash Flow	-23.09M	24.21M	6.65M	-5.57M	-1.20M
Financing Cash Flow	-39.10M	-3.93M	-6.74M	-13.39M	5.10M

High Arctic Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HWO, the sentiment is Negative. The current price of 0.89 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.84, and below the 200-day MA of 1.00, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HWO.

High Arctic Energy Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	79 Outperform	$1.01B	10.38	20.50%	3.34%	-2.14%	-6.88%
TOT	79 Outperform	C$432.85M	6.99	11.38%	3.26%	11.02%	102.23%
SHLE	74 Outperform	C$186.92M	4.65	20.27%	―	18.29%	-94.32%
STEP	66 Neutral	C$320.64M	151.92	-3.90%	―	-5.98%	-121.37%
CFW	65 Neutral	C$340.12M	18.71	3.00%	―	-5.50%	-88.55%
HWO	62 Neutral	C$11.30M	0.45	-3.83%	377.53%	-86.21%	―
Sector *	56 Neutral	C$4.06B	-0.40	0.29%	6.55%	8.42%	-64.58%

High Arctic Energy Services Corporate Events

High Arctic Energy Services Announces AGM Results and New Incentive Plan

High Arctic Energy Services announced the results of its annual general and special meeting, where all proposed matters were approved by shareholders. The meeting included the election of four directors and the approval of a new omnibus equity incentive plan, replacing existing plans. Additionally, MNP LLP was appointed as the auditors of the corporation.

High Arctic Energy Services Reports Q1 2025 Financial Results Amid Strategic Growth Plans

High Arctic Energy Services reported a 22% decrease in revenue for the first quarter of 2025 compared to the same period in 2024, despite achieving a higher operating margin percentage. The company has maintained operational excellence and safety, reduced administrative expenses significantly, and is well-positioned to capitalize on increased gas well completion rates. Strategic objectives for 2025 include focusing on safety, managing costs, and pursuing accretive acquisitions to enhance shareholder value.