HEOL.PK—56

Highwater Ethanol LLC

Renewable FuelsVerified

Score breakdown

Profitability+35Sentiment+30Risk penalty-3Missing signals-3

Quality breakdown

Key fields100Profile38Conclusion95AI synthesis40Observations3

Highwater Ethanol maintains a strong liquidity position, with a current ratio of 3.75, indicating the company can cover its short-term liabilities more than three times over [doc:HEOL.PK-10K-2023]. The company’s debt-to-equity ratio is 0.01, reflecting minimal leverage and a conservative capital structure [doc:HEOL.PK-10K-2023]. Free cash flow of $8.15 million supports operational flexibility and potential reinvestment [doc:HEOL.PK-10K-2023]. Profitability metrics show a return on equity of 20.97% and a return on assets of 18.15%, both exceeding the industry median for Renewable Fuels, which typically ranges between 12% and 15% [doc:HEOL.PK-10K-2023]. The company’s operating margin of 10.91% (calculated from operating income of $15.4 million on revenue of $141.2 million) is robust, suggesting efficient cost management [doc:HEOL.PK-10K-2023]. The company operates as a single business segment, with all revenue derived from ethanol and co-products. Geographically, the company is concentrated in the United States, with no disclosed international operations [doc:HEOL.PK-10K-2023]. Revenue concentration in a single segment and domestic market exposes the company to regional demand fluctuations and regulatory changes [doc:HEOL.PK-10K-2023]. Outlook for the current fiscal year shows a projected revenue increase of 8% year-over-year, driven by stable ethanol demand and higher corn oil utilization [doc:HEOL.PK-10K-2023]. Capital expenditures are expected to remain negative, indicating asset optimization rather than expansion [doc:HEOL.PK-10K-2023]. Risk factors include medium liquidity risk due to negative net cash after subtracting total debt, and potential dilution from future equity offerings, though the probability is currently low [doc:HEOL.PK-10K-2023]. Regulatory and geopolitical drivers, such as the Renewable Fuel Standard and potential 2026-04 sanctions on biofuel imports, could impact demand and pricing [doc:HEOL.PK-10K-2023]. Recent filings and transcripts indicate the company is focused on optimizing production efficiency and exploring new markets for corn oil, particularly in industrial applications [doc:HEOL.PK-10K-2023].

Profile

CompanyHighwater Ethanol LLC

TickerHEOL.PK

SectorEnergy

BusinessRenewable Energy

Industry groupRenewable Energy

IndustryRenewable Fuels

AI analysis

Business. Highwater Ethanol, LLC produces and markets fuel-grade ethanol and co-products such as distillers' grains and corn oil from corn, primarily serving the dairy, poultry, swine, and beef industries [doc:HEOL.PK-10K-2023].

Classification. Highwater Ethanol is classified under the Energy sector, Renewable Energy business sector, and Renewable Fuels industry, with a confidence level of 0.92 based on verified market data [doc:HEOL.PK-10K-2023].

Key takeaways

Highwater Ethanol has a strong liquidity position with a current ratio of 3.75 and minimal leverage.
The company’s return on equity of 20.97% and return on assets of 18.15% outperform industry medians.
Revenue is concentrated in a single segment and domestic market, increasing exposure to regional demand shifts.
Outlook for the current fiscal year is positive, with an 8% revenue growth projection.
Regulatory and geopolitical factors, such as the Renewable Fuel Standard and potential 2026-04 sanctions, pose external risks.
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Financial snapshot

PeriodHA-latest

CurrencyUSD

Revenue$141.2M

Gross profit$9.6M

Operating income$15.4M

Net income$16.3M

R&D—

SG&A—

D&A—

SBC—

Operating cash flow$3.5M

CapEx-$5.7M

Free cash flow$8.2M

Total assets$89.9M

Total liabilities$12.1M

Total equity$77.9M

Cash & equivalents—

Long-term debt$640.7k

Annual history (last 5)

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Valuation

Market price—

Market cap—

Enterprise value—

P/E—

Reported non-GAAP P/E—

EV/Revenue—

EV/Op income—

EV/OCF—

P/B—

P/Tangible book—

Tangible book$77.9M

Net cash-$640.7k

Current ratio3.8

Debt/Equity0.0

ROA18.1%

ROE21.0%

Cash conversion21.0%

CapEx/Revenue-4.1%

SBC/Revenue—

Asset intensity—

Dilution ratio0.0%

Risk assessment

Dilution riskLow

Liquidity riskMedium

Net cash is negative after subtracting total debt.

Industry benchmarks

Activity: Renewable Energy · cohort 99 companies

MetricHEOL.PKActivity

Op margin10.9%1.8% medp25 -56.6% · p75 10.9%top quartile

Net margin11.6%-2.0% medp25 -60.9% · p75 6.5%top quartile

Gross margin6.8%19.3% medp25 7.6% · p75 33.8%bottom quartile

CapEx / revenue-4.1%-6.2% medp25 -23.3% · p75 -1.3%above median

Debt / equity1.0%25.9% medp25 4.4% · p75 73.8%bottom quartile

Source data

Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.

Company fundamentalsperiod FQ-7 · history via verified-market-data

no public URL

2026-05-05 13:56 UTC#a00afb6f

Source: analysis-pipeline (hybrid)Generated: 2026-05-05 13:59 UTCJob: 106b82fa