Hemisphere Energy (TSXV:HME) GF Value Rank : 6 (As of Jun. 03, 2024)

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What is Hemisphere Energy GF Value Rank?

Hemisphere Energy has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Hemisphere Energy's GF Value Rank

For the Oil & Gas E&P subindustry, Hemisphere Energy's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Hemisphere Energy's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Hemisphere Energy's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hemisphere Energy's GF Value Rank falls into.

Hemisphere Energy GF Value Rank Related Terms

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Hemisphere Energy (TSXV:HME) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

HMENF:USA N4Q1:Germany

Address

905 West Pender Street, Suite 501, Vancouver, BC, CAN, V6C 1L6

Website

https://www.hemisphereenergy.ca

Hemisphere Energy Corp is a Canadian oil company focused on the sustainable growth of its high netback, low decline conventional heavy oil assets through water and polymer flood-enhanced recovery methods. It specializes in the development of conventional oil pools using enhanced oil recoveries methods such as waterflood and polymer flood to maximize production and oil recovery. The company's oil assets are in the Manville oil play in the Atlee Buffalo and Jenner areas of southeastern Alberta.

Executives

Ashley Ramsden-wood

Senior Officer