HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
NASDAQ:HPK - US43114Q1058 - Common Stock
7.42 USD
-0.18 (-2.37%)
7.5376 USD
+0.12 (+1.58%)
Overall HPK gets a fundamental rating of 4 out of 10. We evaluated HPK against 208 industry peers in the Oil, Gas & Consumable Fuels industry. While HPK is still in line with the averages on profitability rating, there are concerns on its financial health. HPK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HPK had positive earnings in the past year.
HPK had a positive operating cash flow in the past year.
HPK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years HPK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.55%, HPK perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
HPK has a Return On Equity (6.63%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 7.22%, HPK is doing good in the industry, outperforming 63.46% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HPK is significantly below the industry average of 23.39%.
The last Return On Invested Capital (7.22%) for HPK is well below the 3 year average (12.14%), which needs to be investigated, but indicates that HPK had better years and this may not be a problem.
| 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
HPK has a Profit Margin (11.37%) which is in line with its industry peers.
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 70.67% of its industry peers.
HPK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.64%, HPK belongs to the top of the industry, outperforming 93.27% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HPK is still creating some value.
Compared to 1 year ago, HPK has less shares outstanding
The number of shares outstanding for HPK has been increased compared to 5 years ago.
HPK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that HPK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.22, HPK perfoms like the industry average, outperforming 48.08% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 65.42, HPK is doing worse than 60.58% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that HPK is somewhat dependend on debt financing.
The Debt to Equity ratio of HPK (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.61
WACC11.83%
2.3 Liquidity
HPK has a Current Ratio of 0.87. This is a bad value and indicates that HPK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.87, HPK is not doing good in the industry: 63.46% of the companies in the same industry are doing better.
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.
The Revenue for HPK has decreased by -35.61% in the past year. This is quite bad
The Revenue has been growing by 165.54% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, HPK will show a decrease in Revenue. The Revenue will decrease by -9.48% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.63, the valuation of HPK can be described as very reasonable.
Based on the Price/Earnings ratio, HPK is valued a bit cheaper than the industry average as 79.81% of the companies are valued more expensively.
HPK is valuated cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
HPK is valuated reasonably with a Price/Forward Earnings ratio of 10.35.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HPK indicates a somewhat cheap valuation: HPK is cheaper than 65.87% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.67. HPK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPK is valued cheaper than 91.83% 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 | 59.6 | ||
| EV/EBITDA | 2.63 |
4.3 Compensation for Growth
The decent profitability rating of HPK 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
HPK has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of HPK has falen by -24.97%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HPK's Dividend Yield is slightly below the industry average, which is at 6.33.
HPK's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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
7.42
-0.18 (-2.37%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners20.72%
Inst Owner Change-0.09%
Ins Owners16.52%
Ins Owner Change0.31%
Market Cap935.88M
Analysts46.67
Price Target7.14 (-3.77%)
Short Float %28.78%
Short Ratio11.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)-63.64%
PT rev (3m)-59.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-59.35%
EPS NY rev (1m)26.85%
EPS NY rev (3m)69.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.69%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.63 | ||
| Fwd PE | 10.35 | ||
| P/S | 0.97 | ||
| P/FCF | 59.6 | ||
| P/OCF | 1.52 | ||
| P/B | 0.57 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 2.63 |
EPS(TTM)0.86
EY11.59%
EPS(NY)0.72
Fwd EY9.66%
FCF(TTM)0.12
FCFY1.68%
OCF(TTM)4.88
OCFY65.7%
SpS7.64
BVpS13.11
TBVpS13.11
PEG (NY)N/A
PEG (5Y)N/A
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
ROICexcg growth 3Y-5.35%
ROICexcg 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 | 1.22 |
F-Score4
WACC11.83%
ROIC/WACC0.61
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 Year116.35%
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