Headwater Exploration Inc. (HWX-T)
TSE:HWX
5.85
0.06
(1.04%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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This summary was created by AI, based on 7 opinions in the last 12 months.
Headwater Exploration Inc. is recognized as a well-managed small to mid-cap company with a solid yield, appealing to investors looking for income and growth potential. Multiple analysts note its sustainable dividend, which stems from a reasonable payout ratio and expected production growth tied to its operations in the Clearwater resource area. The stock is perceived as inexpensive relative to its growth and income capabilities, with targets ranging from around $9.00 to $11.00, suggesting significant upside potential. Despite some fluctuations in stock performance and a recent selloff, the general sentiment remains optimistic about its exploration success and management's strategic planning. Analysts commend its strong balance sheet, quality management, and ongoing expansion efforts, indicating a favorable long-term outlook despite short-term price adjustments.
Our PAST TOP PICK with HWX has triggered its stop at $7. To remain disciplined, we recommend covering the position at this time. When combined with our previous recommendation this will result in a net investment gain of 2%.
We reiterate HWX as a TOP PICK. Management reports production remains on target for annualized production of 20,000 boe/d for 2024 and capital has been allocated on several projects for the balance of the year. It trades at 11x earnings and supports a 27% ROE. Its dividend is backed by a payout ratio under 65% of cash flow, which still allows quarterly cash flow to grow. We recommend trailing up the stop from $6.25 to $7.00, looking to achieve $9.00 -- upside potential of 20%. Yield 5.4%
(Analysts’ price target is $9.32)Great exposure to the WCS-WTI gap shrinking this year as the Transmountain becomes fully operational later this year. The 6% dividend will grow 10-15% this year, and they plan to grow overall by 50% over 2023. Strong cash flow as they expand. Interesting exploration plans. Fantastic results.
(Analysts’ price target is $8.88)The Calgary-based oil and gas producer focuses on slow declining long-life reserves in Marten Hills and New Brunswick. Recently reported earnings were up over 50% on the year. It trades at 11x earnings, 2.5x book and supports a 27% ROE. Its high dividend is supported by a payout ratio under 65% of cash flow. We recommend setting a stop-loss at $4.75, looking to achieve $9.00 -- upside potential over 35%. Yield 6.3%
(Analysts’ price target is $9.18)CEO has a great reputation. Stock's not moved too much. Nice position in Clearwater, one of the best plays in Western Canada. Moving to a dividend strategy, which will increase investor interest. Assuming oil prices hold in, dividend should be well covered with cashflow and they should be able to grow production a bit.
Too small for him, but great choice of a smaller name that has torque.
Headwater Exploration Inc. (HWX-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 5
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 5
Headwater Exploration Inc. (HWX-T) Frequently Asked Questions
What is Headwater Exploration Inc. stock symbol?
Headwater Exploration Inc. is a Canadian stock, trading under the symbol HWX-T on the Toronto Stock Exchange (HWX-CT). It is usually referred to as TSX:HWX or HWX-T
Is Headwater Exploration Inc. a buy or a sell?
In the last year, 5 stock analysts published opinions about HWX-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Headwater Exploration Inc. .
Is Headwater Exploration Inc. a good investment or a top pick?
Headwater Exploration Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Headwater Exploration Inc. .
Why is Headwater Exploration Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Headwater Exploration Inc. worth watching?
5 stock analysts on Stockchase covered Headwater Exploration Inc. In the last year. It is a trending stock that is worth watching.
What is Headwater Exploration Inc. stock price?
On 2025-05-07, Headwater Exploration Inc. (HWX-T) stock closed at a price of $5.85.
Small-cap yielding 8%, sustainable in low $50s. Wouldn't be surprised if it dialed back capex, which makes the dividend even more sustainable. Almost a pure play to Clearwater, an exceptional resource. Owns in his income fund, on his list to add to the main fund. Inexpensive. Respected management.