Hammerhead Energy Inc.
Hammerhead Energy Inc. Fundamental Analysis
Hammerhead Energy Inc. (HHRS) shows moderate financial fundamentals with a PE ratio of 8.46, profit margin of 30.41%, and ROE of 19.36%. The company generates $0.8B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze HHRS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentHHRS demonstrates superior asset utilization.
Valuation Score
ExcellentHHRS trades at attractive valuation levels.
Growth Score
WeakHHRS faces weak or negative growth trends.
Financial Health Score
ModerateHHRS shows balanced financial health with some risks.
Profitability Score
ModerateHHRS maintains healthy but balanced margins.
Key Financial Metrics
Is HHRS Expensive or Cheap?
P/E Ratio
HHRS trades at 8.46 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HHRS's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values Hammerhead Energy Inc. at 1.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.41 times EBITDA. This is generally considered low.
How Well Does HHRS Make Money?
Net Profit Margin
For every $100 in sales, Hammerhead Energy Inc. keeps $30.41 as profit after all expenses.
Operating Margin
Core operations generate 49.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.36 in profit for every $100 of shareholder equity.
ROA
Hammerhead Energy Inc. generates $12.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hammerhead Energy Inc. generates strong operating cash flow of $392.46M, reflecting robust business health.
Free Cash Flow
Hammerhead Energy Inc. generates weak or negative free cash flow of $-13.23M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.14 in free cash annually.
FCF Yield
HHRS converts -0.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How HHRS Stacks Against Its Sector Peers
| Metric | HHRS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.46 | 20.19 | Better (Cheaper) |
| ROE | 19.36% | 1019.00% | Weak |
| Net Margin | 30.41% | -44017.00% (disorted) | Strong |
| Debt/Equity | 0.21 | -0.65 (disorted) | Distorted |
| Current Ratio | 0.85 | 4.60 | Weak Liquidity |
| ROA | 12.75% | -11655350.00% (disorted) | Strong |
HHRS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hammerhead Energy Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity