High Arctic Energy Services (HWO) AI Stock Analysis

• Market Cap: $10.54M
• Dividend Yield: N/A
• Average Volume (3M): 4.61K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.66
• 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: 1.23
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 7.88
• 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: 60 Neutral
• Price Target: C$1.00 ▲(19.05% Upside)

The overall stock score for High Arctic Energy Services is driven by a stable balance sheet and potential undervaluation, as indicated by a very low P/E ratio. However, financial performance is hindered by declining revenues and cash flow challenges. Technical analysis shows moderate bullish momentum, supporting a slightly positive outlook.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial resilience, allowing the company to navigate industry volatility effectively.

Positive Net Profit Margin

Maintaining a positive net profit margin indicates operational efficiency and potential for profitability even during revenue declines.

Strong Cash Generation

Strong cash generation relative to net income supports ongoing operations and strategic investments, enhancing long-term business sustainability.

Negative Factors

Declining Revenues

Declining revenues suggest challenges in market demand or competitive positioning, potentially impacting future growth and profitability.

Cash Flow Challenges

Reduced free cash flow growth can limit the company's ability to reinvest in business operations and manage financial obligations effectively.

Negative EBIT Margins

Negative EBIT margins indicate cost management issues, which could erode profitability and hinder competitive advantage over time.

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 shows a mixed financial performance. The income statement indicates declining revenues and operational inefficiencies, though there is a positive net profit margin in the TTM. The balance sheet is stable with low leverage, but cash flow challenges are evident with 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	9.68M	10.47M	61.93M	80.02M	76.44M	90.80M
Gross Profit	2.56M	2.61M	11.31M	-5.78M	-8.42M	-14.20M
EBITDA	1.65M	724.00K	-14.32M	-9.41M	4.39M	10.40M
Net Income	26.09M	28.31M	-13.14M	-36.58M	-18.61M	-25.90M
Balance Sheet
Total Assets	28.75M	30.87M	123.14M	133.96M	185.45M	214.20M
Cash, Cash Equivalents and Short-Term Investments	2.43M	3.12M	50.33M	19.56M	12.04M	32.60M
Total Debt	4.52M	4.66M	6.35M	5.70M	16.52M	19.20M
Total Liabilities	7.69M	9.76M	23.80M	18.73M	36.60M	36.90M
Stockholders Equity	21.07M	21.11M	99.33M	115.23M	148.85M	177.30M
Cash Flow
Free Cash Flow	1.18M	12.33M	9.26M	3.79M	-9.04M	14.80M
Operating Cash Flow	3.10M	14.27M	11.22M	7.86M	-1.80M	19.70M
Investing Cash Flow	-21.52M	-23.09M	24.21M	6.65M	-5.57M	-1.20M
Financing Cash Flow	-38.79M	-39.10M	-3.93M	-6.74M	-13.39M	5.10M

High Arctic Energy Services Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.84
• 50DMA: Positive
• 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 Neutral. The current price of 0.84 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.84, and below the 200-day MA of 0.88, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	80 Outperform	$1.22B	10.06	18.06%	3.80%	9.24%	6.35%
SHLE	74 Outperform	C$162.67M	4.13	11.94%	―	-0.39%	-86.01%
TOT	69 Neutral	C$544.03M	9.07	10.51%	2.67%	15.58%	47.55%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	61 Neutral	C$269.69M	27.35	3.20%	―	-8.13%	-28.00%
HWO	60 Neutral	$10.54M	0.40	-0.80%	―	-75.46%	-100.66%
STEP	58 Neutral	C$399.37M	-19.59	-1.94%	―	-9.19%	-119.27%

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.

The most recent analyst rating on (TSE:HWO) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on High Arctic Energy Services stock, see the TSE:HWO Stock Forecast page.

High Arctic Energy Sees Improved Margins Amid Revenue Dip

High Arctic Energy Services Inc., a Canadian energy services provider, specializes in pressure control equipment and high-pressure stimulation support for oil and gas wells, primarily operating from Alberta. In its second quarter of 2025, High Arctic reported a revenue of $2,391 thousand CAD, marking a 6% decline from the previous year, while achieving an improved operating margin of 49.1%. The company also reported an adjusted EBITDA of $482 thousand CAD, benefiting from significant reductions in general and administrative expenses. Despite a net loss of $295 thousand CAD, this was a marked improvement from the $1,709 thousand CAD loss in the same quarter of 2024, attributed to better profitability in Alaskan operations and reduced losses from equity investments. Looking ahead, High Arctic aims to continue focusing on safety, cost management, and strategic investments to enhance shareholder value, while navigating the challenges posed by economic uncertainties and fluctuating commodity prices.

High Arctic Energy Services Announces Executive Management Changes

High Arctic Energy Services announced significant executive management changes with the resignation of Mike Maguire as CEO and the appointment of Lonn Bate as Interim CEO. Lonn Bate, who has been with the company in various capacities, brings extensive financial and strategic experience to the role. Additionally, Jay Bachman has been appointed as Interim CFO. These changes come as High Arctic completes its post spin-out transition, aiming to achieve its 2025 strategic objectives under new leadership.

The most recent analyst rating on (TSE:HWO) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on High Arctic Energy Services stock, see the TSE:HWO Stock Forecast page.

High Arctic Energy Services Reports Steady Q2 2025 Performance Amid Strategic Focus

High Arctic Energy Services reported a consistent performance in the second quarter of 2025, maintaining operational excellence and safety standards. Despite a 6% decrease in revenue compared to the previous year, the company improved its oilfield services operating margin and reduced general and administrative expenses significantly. The company also highlighted its strategic objectives for 2025, which include focusing on safety, managing costs, and pursuing accretive acquisitions to enhance shareholder value.