High Arctic Energy Services (HWO) AI Stock Analysis

• Market Cap: $10.92M
• Dividend Yield: 400%
• Average Volume (3M): 4.28K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.67
• Revenue Growth: -82.87%
• EPS Growth: N/A
• Country: CA
• Employees: 15
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): -0.02
• Shares Outstanding: 12,696,959
• 10 Day Avg. Volume: 1,950
• 30 Day Avg. Volume: 4,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 5.09
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $1.01
• Price Target Upside: 16.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: C$1.00 ▲(16.28% Upside)

The overall stock score of 58 reflects a mixed financial performance with stable balance sheet but declining revenues and cash flow challenges. Technical indicators show a neutral trend, and the extremely low P/E ratio suggests potential undervaluation. The absence of earnings call and corporate events data limits further insights.

High Arctic Energy Services Business Overview & Revenue Model

Company Description

High Arctic Energy Services Inc., an oilfield services company, provides oilfield services to exploration and production companies in Canada and Papua New Guinea. The company operates through three segments: Drilling Services, Production Services, and Ancillary Services. It offers snubbing services, including foothills standalone snubbing system for completions and workovers; hydraulic workover units, such as a patented L-Frame equipment configuration; rig assist snubbing unit, a truck-mounted hydraulic system to manage underbalanced wellbore conditions; and power tower to install a snubbing unit and blowout preventers in one lift. The company also rents oilfield equipment comprising accumulators, blowout preventers, casing cutters and scrappers, hydraulic catwalks, rig shacks, chokes, boilers, boiler blowdown tanks, generators, light towers, cross over and rotary subs, elevators, EUE collars, fire suppression kits, fuel tank skids, hot tap kits, mud cans, pickers, pipe racks, power swivels, pumps, slips, spools, flanges, thread washers, tongs, trailers and accommodations, tubing, gate, plug, hydraulic/air actuated, and safety valves; and kelly cocks for drilling, completions, workover, and abandonment of oil and gas operations. In addition, it provides nitrogen pumping units; and well servicing. Further, the company owns and operates two heli-portable drilling rigs in Papua New Guinea; and offers support equipment, such as rig matting, crawler cranes, water pumps, forklifts/wheel loaders, telehandlers, lighting towers, camps, trucks, wash-down packages, vehicles, and drill pipes and BHA. High Arctic Energy Services Inc. was founded in 1993 and is headquartered in Calgary, Canada.

How the Company Makes Money

High Arctic Energy Services generates revenue through multiple key streams, primarily by providing drilling and completions services, as well as production support services to oil and gas companies. The company earns money by charging clients for its specialized equipment rental services, labor, and operational support during drilling and completion projects. Additionally, High Arctic has established significant partnerships with major players in the energy sector, which bolster its market presence and lead to long-term contracts. The company also benefits from fluctuating oil prices and increased drilling activity, which can drive demand for its services. Other revenue opportunities may arise from innovative technology solutions aimed at optimizing drilling and production processes.

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 positive cash flow generation provide 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	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	-111.00K	-9.41M	4.43M	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: Positive
• Last Price: 0.86
• 50DMA: Negative
• 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 Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.82, above the 50-day MA of 0.84, and below the 200-day MA of 0.95, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	1.21B	10.73	21.71%	3.50%	-2.14%	-6.88%
TOT	79 Outperform	513.54M	7.92	11.34%	2.75%	14.74%	62.76%
SHLE	74 Outperform	183.25M	4.65	0.00%	―	18.15%	-75.41%
HWO	58 Neutral	$10.92M	0.41	-2.30%	400.00%	-82.87%	―
STEP	56 Neutral	313.36M	-15.37	-5.13%	―	-6.25%	-129.86%
CFW	52 Neutral	283.44M	28.75	1.50%	―	-4.63%	-92.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

High Arctic Energy Services Corporate Events

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.

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.