High Arctic Energy Services (HWO) AI Stock Analysis

• Market Cap: C$10.79M
• Dividend Yield: N/A
• Average Volume (3M): 4.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -75.46%
• EPS Growth: -100.66%
• Country: CA
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.07
• Shares Outstanding: 12,696,959
• 10 Day Avg. Volume: 3,018
• 30 Day Avg. Volume: 4,609
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 1.11
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$0.87 ▲(1.88% Upside)

The overall stock score of 49 reflects significant challenges in financial performance, particularly in profitability and cash flow. Technical analysis shows a neutral trend, while valuation metrics are weak due to a negative P/E ratio and lack of dividends. The stable balance sheet is a positive factor, but the company needs to address its profitability issues to improve its stock attractiveness.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage provides financial flexibility and reduces risk, supporting long-term operational stability.

Strategic Partnerships

Strategic partnerships enhance market presence and secure ongoing projects, contributing to a stable revenue base and long-term growth.

Revenue Streams

Diverse revenue streams from core services provide a stable income base, reducing dependency on any single market segment.

Negative Factors

Profitability Concerns

Negative profitability margins indicate operational inefficiencies, which could hinder long-term financial health and growth potential.

Cash Flow Challenges

Significant cash flow challenges limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Revenue Decline

A sharp decline in revenue growth suggests market challenges and could impact the company's ability to sustain its operations long-term.

High Arctic Energy Services Business Overview & Revenue Model

Company Description

High Arctic Energy Services (HWO) is a leading provider of specialized services to the oil and gas industry, primarily focused on the Canadian and international markets. The company operates in various sectors, including drilling services, well servicing, and equipment rentals. High Arctic Energy Services offers a range of core products and services such as drilling rigs, camp services, and various support services that enhance the efficiency and safety of oilfield operations.

How the Company Makes Money

High Arctic Energy Services generates revenue through multiple key streams, primarily from the provision of drilling services and well servicing contracts. The company earns income by leasing its drilling rigs and equipment to oil and gas companies, charging fees based on the duration and complexity of the services provided. Additionally, High Arctic benefits from long-term contracts with major clients, which provide a stable revenue base. The company has also formed significant partnerships with leading operators in the energy sector, allowing it to secure ongoing projects and enhance its market presence. The combination of these factors, along with strategic geographic positioning in regions with active oil extraction, contributes to the company's earnings.

High Arctic Energy Services Financial Statement Overview

Summary

High Arctic Energy Services faces a mixed financial outlook. The income statement shows declining revenues and operational challenges, with negative EBIT margins. The balance sheet is strong with low leverage, but cash flow generation is under pressure due to a significant drop in free cash flow growth.

Income Statement

The income statement shows a challenging environment with declining revenues and negative EBIT margins over the periods. Despite a positive net income in the TTM, the revenue growth rate is negative, indicating a contraction in sales. The gross profit margin is relatively low, and the EBIT margin is negative, suggesting operational inefficiencies. However, the net profit margin is positive in the TTM, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is healthy, suggesting a strong capital structure. However, the return on equity is volatile, with negative values in previous years, indicating inconsistent profitability.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth in the TTM, which is concerning. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, highlighting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.10M	10.47M	61.93M	80.02M	76.44M	90.80M
Gross Profit	2.83M	2.61M	11.31M	-5.78M	-8.42M	-14.20M
EBITDA	2.48M	724.00K	-14.32M	-9.41M	4.39M	10.40M
Net Income	-199.00K	28.31M	-13.14M	-36.58M	-18.61M	-25.90M
Balance Sheet
Total Assets	29.91M	30.87M	123.14M	133.96M	185.45M	214.20M
Cash, Cash Equivalents and Short-Term Investments	3.05M	3.12M	50.33M	19.56M	12.04M	32.60M
Total Debt	4.47M	4.66M	6.35M	5.70M	16.52M	19.20M
Total Liabilities	7.87M	9.76M	23.80M	18.73M	36.60M	36.90M
Stockholders Equity	22.04M	21.11M	99.33M	115.23M	148.85M	177.30M
Cash Flow
Free Cash Flow	-1.14M	12.33M	9.26M	3.79M	-9.04M	14.80M
Operating Cash Flow	331.00K	14.27M	11.22M	7.86M	-1.80M	19.70M
Investing Cash Flow	530.00K	-23.09M	24.21M	6.65M	-5.57M	-1.20M
Financing Cash Flow	-1.44M	-39.10M	-3.93M	-6.74M	-13.39M	5.10M

High Arctic Energy Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 0.85 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.85, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.99 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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	78 Outperform	C$1.19B	9.82	18.06%	3.76%	9.24%	6.35%
TOT	78 Outperform	C$564.86M	9.42	10.51%	2.63%	15.58%	47.55%
SHLE	74 Outperform	C$195.71M	8.50	11.94%	―	-0.39%	-86.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	65 Neutral	C$345.16M	15.13	3.20%	―	-8.13%	-28.00%
STEP	56 Neutral	C$400.15M	-49.68	-1.94%	―	-9.19%	-119.27%
HWO	49 Neutral	C$10.79M	-50.30	-0.80%	―	-75.46%	-100.66%

High Arctic Energy Services Corporate Events

High Arctic Energy Services Achieves Strong Q3 2025 Results with Strategic Growth

High Arctic Energy Services reported strong financial and operational results for the third quarter of 2025, driven by strategic objectives and a new customer in high-pressure stimulation work. The company achieved a 17% increase in revenue and a 98% rise in adjusted EBITDA compared to the previous year, highlighting its operational excellence and safety record. Team Snubbing, in which High Arctic holds a 42% equity interest, also saw significant financial improvements, contributing to a record quarter. The company continues to focus on safety, cost management, and strategic growth initiatives to enhance shareholder value.