HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
USA - NASDAQ:HPK - US43114Q1058 - Common Stock
6.98 USD
-0.18 (-2.51%)
6.98 USD
0 (0%)
Overall HPK gets a fundamental rating of 4 out of 10. We evaluated HPK against 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of HPK while its profitability can be described as average. HPK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HPK was profitable.
In the past year HPK had a positive cash flow from operations.
HPK had positive earnings in 4 of the past 5 years.
HPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HPK has a Return On Assets (3.55%) which is comparable to the rest of the industry.
HPK has a Return On Equity (6.63%) which is comparable to the rest of the industry.
HPK's Return On Invested Capital of 7.22% is fine compared to the rest of the industry. HPK outperforms 64.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HPK is significantly below the industry average of 21.54%.
The 3 year average ROIC (12.14%) for HPK is well above the current ROIC(7.22%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.63% | ||
| ROIC | 7.22% |
ROA(3y)6.16%
ROA(5y)1.28%
ROE(3y)12.05%
ROE(5y)4.96%
ROIC(3y)12.14%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.37%, HPK is doing good in the industry, outperforming 60.19% of the companies in the same industry.
HPK's Profit Margin has declined in the last couple of years.
HPK's Operating Margin of 29.58% is fine compared to the rest of the industry. HPK outperforms 72.51% of its industry peers.
In the last couple of years the Operating Margin of HPK has declined.
HPK's Gross Margin of 85.64% is amongst the best of the industry. HPK outperforms 92.89% of its industry peers.
HPK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.58% | ||
| PM (TTM) | 11.37% | ||
| GM | 85.64% |
OM growth 3Y-11.64%
OM growth 5YN/A
PM growth 3Y-31.74%
PM growth 5YN/A
GM growth 3Y-0.38%
GM growth 5Y8.6%
2. Health
2.1 Basic Checks
HPK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, HPK has less shares outstanding
HPK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HPK has an improved debt to assets ratio.
2.2 Solvency
HPK has an Altman-Z score of 1.21. This is a bad value and indicates that HPK is not financially healthy and even has some risk of bankruptcy.
HPK has a Altman-Z score (1.21) which is comparable to the rest of the industry.
The Debt to FCF ratio of HPK is 65.42, which is on the high side as it means it would take HPK, 65.42 years of fcf income to pay off all of its debts.
HPK has a Debt to FCF ratio (65.42) which is in line with its industry peers.
A Debt/Equity ratio of 0.62 indicates that HPK is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.62, HPK is in line with its industry, outperforming 41.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.65
WACC11.13%
2.3 Liquidity
A Current Ratio of 0.87 indicates that HPK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, HPK is doing worse than 62.09% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that HPK may have some problems paying its short term obligations.
HPK has a Quick ratio (0.82) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
HPK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -43.42%.
The Earnings Per Share has been growing slightly by 4.11% on average over the past years.
HPK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -35.61%.
HPK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 165.54% yearly.
EPS 1Y (TTM)-43.42%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-9.52%
Revenue 1Y (TTM)-35.61%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-27.2%
3.2 Future
HPK is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.89% yearly.
The Revenue is expected to decrease by -9.48% on average over the next years.
EPS Next Y-30.12%
EPS Next 2Y-14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.22%
Revenue Next 2Y-9.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.12, the valuation of HPK can be described as reasonable.
Based on the Price/Earnings ratio, HPK is valued cheaper than 83.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. HPK is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.73, the valuation of HPK can be described as reasonable.
HPK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HPK is cheaper than 71.56% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HPK to the average of the S&P500 Index (22.92), we can say HPK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 9.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPK is valued cheaper than 91.47% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.06 | ||
| EV/EBITDA | 2.59 |
4.3 Compensation for Growth
HPK has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as HPK's earnings are expected to decrease with -14.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, HPK has a reasonable but not impressive dividend return.
The stock price of HPK dropped by -25.74% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 6.30, HPK has a dividend in line with its industry peers.
HPK's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
HPK has been paying a dividend for over 5 years, so it has already some track record.
HPK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
HPK pays out 20.09% of its income as dividend. This is a sustainable payout ratio.
DP20.09%
EPS Next 2Y-14.89%
EPS Next 3YN/A
6.98
-0.18 (-2.51%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.04%
Inst Owner Change0.24%
Ins Owners17.89%
Ins Owner Change0.31%
Market Cap880.39M
Revenue(TTM)964.23M
Net Income(TTM)109.63M
Analysts42.5
Price Target7.14 (2.29%)
Short Float %29.8%
Short Ratio11.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP20.09%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.05%
Min EPS beat(2)0.95%
Max EPS beat(2)135.15%
EPS beat(4)3
Avg EPS beat(4)34.6%
Min EPS beat(4)-51.7%
Max EPS beat(4)135.15%
EPS beat(8)4
Avg EPS beat(8)2.29%
EPS beat(12)4
Avg EPS beat(12)-9.68%
EPS beat(16)4
Avg EPS beat(16)-19.98%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-2.12%
Revenue beat(12)5
Avg Revenue beat(12)-4.35%
Revenue beat(16)8
Avg Revenue beat(16)-2.83%
PT rev (1m)0%
PT rev (3m)-63.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)80.01%
EPS NY rev (1m)0%
EPS NY rev (3m)26.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.12 | ||
| Fwd PE | 9.73 | ||
| P/S | 0.91 | ||
| P/FCF | 56.06 | ||
| P/OCF | 1.43 | ||
| P/B | 0.53 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 2.59 |
EPS(TTM)0.86
EY12.32%
EPS(NY)0.72
Fwd EY10.27%
FCF(TTM)0.12
FCFY1.78%
OCF(TTM)4.88
OCFY69.84%
SpS7.64
BVpS13.11
TBVpS13.11
PEG (NY)N/A
PEG (5Y)N/A
Graham Number15.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.63% | ||
| ROCE | 9.67% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 7.27% | ||
| OM | 29.58% | ||
| PM (TTM) | 11.37% | ||
| GM | 85.64% | ||
| FCFM | 1.63% |
ROA(3y)6.16%
ROA(5y)1.28%
ROE(3y)12.05%
ROE(5y)4.96%
ROIC(3y)12.14%
ROIC(5y)N/A
ROICexc(3y)12.61%
ROICexc(5y)N/A
ROICexgc(3y)12.61%
ROICexgc(5y)N/A
ROCE(3y)16.28%
ROCE(5y)N/A
ROICexgc growth 3Y-5.35%
ROICexgc growth 5YN/A
ROICexc growth 3Y-5.35%
ROICexc growth 5YN/A
OM growth 3Y-11.64%
OM growth 5YN/A
PM growth 3Y-31.74%
PM growth 5YN/A
GM growth 3Y-0.38%
GM growth 5Y8.6%
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 132.34% | ||
| Cap/Sales | 62.14% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 83.32% | ||
| Profit Quality | 14.32% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.21 |
F-Score4
WACC11.13%
ROIC/WACC0.65
Cap/Depr(3y)316.38%
Cap/Depr(5y)403.02%
Cap/Sales(3y)95.43%
Cap/Sales(5y)171.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-43.42%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-9.52%
EPS Next Y-30.12%
EPS Next 2Y-14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-35.61%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-27.2%
Revenue Next Year-17.22%
Revenue Next 2Y-9.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.05%
EBIT growth 3Y49.65%
EBIT growth 5YN/A
EBIT Next Year117%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y102.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.54%
OCF growth 3Y67.47%
OCF growth 5YN/A
HIGHPEAK ENERGY INC / HPK FAQ
What is the ChartMill fundamental rating of HIGHPEAK ENERGY INC (HPK) stock?
ChartMill assigns a fundamental rating of 4 / 10 to HPK.
What is the valuation status for HPK stock?
ChartMill assigns a valuation rating of 6 / 10 to HIGHPEAK ENERGY INC (HPK). This can be considered as Fairly Valued.
How profitable is HIGHPEAK ENERGY INC (HPK) stock?
HIGHPEAK ENERGY INC (HPK) has a profitability rating of 6 / 10.
What is the expected EPS growth for HIGHPEAK ENERGY INC (HPK) stock?
The Earnings per Share (EPS) of HIGHPEAK ENERGY INC (HPK) is expected to decline by -30.12% in the next year.
How sustainable is the dividend of HIGHPEAK ENERGY INC (HPK) stock?
The dividend rating of HIGHPEAK ENERGY INC (HPK) is 3 / 10 and the dividend payout ratio is 20.09%.