Obermatt

Headwater Exploration

TOR:HWX · CA4220961078
Oil, Gas & Consumable FuelsMedium

360

65
EV / EBIT5
Price / Owner Earnings7
Owner Earnings Yield49
Dividend Yield79
Price/Sales14
EV / Gross Profit28
Price/Book5
Return on Capital95
Cash Return on Capital56
Return on Equity81
EBIT Margin71
Gross Profitability99
Cash Conversion38
Accruals21
Owner Earnings Margin52
Sales growth92
Profit Growth20
Long-Term EPS Growth23
Owner Earnings Growth29
Reinvestment64
Price momentum94
Debt load98
Refinancing49
Debt Payback100
Liquidity100
Analyst ratings61
Opinion Changes50
Price Target Upside45
Market mood29
Value Creation12/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Headwater Exploration clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryCanada
IndustryOil, Gas & Consumable Fuels
SizeMedium
TypePublic Company
ExchangeTSX
Founded1996
Employees42
ISINCA4220961078
Last UpdateApr 2, 2026
Themes
Oil and Gas

Description

Headwater Exploration Inc. is a publicly traded oil and gas exploration company. The company focuses on acquiring and developing oil and natural gas reserves in Canada, primarily in the Montney and other resource-rich basins. The company is committed…

Analysis

Hope premium

Headwater Exploration Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is expensive. The owner-earnings multiple stands at 102.7×; owner earnings: the cash an owner could take out each year.

Growth is moderate; the safety picture is sturdy. The company scores 12/20 on our value-creation score: creating some value.

Flags to be aware of: Some accounting patterns deserve a closer look. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
73
2026

All-time high

73

Jun 2026

All-time low

66

Mar 2026

Average rank

70

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
14
Price/Earnings
12
Price/Book
5
Dividend Yield
79
Value (overall)
14

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →