HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
USA - NASDAQ:HPK - US43114Q1058 - Common Stock
5.99 USD
+0.1 (+1.7%)
6 USD
+0.01 (+0.17%)
We assign a fundamental rating of 4 out of 10 to HPK. HPK was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. HPK has a medium profitability rating, but doesn't score so well on its financial health evaluation. HPK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HPK had positive earnings in the past year.
In the past year HPK had a positive cash flow from operations.
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 52.86% of the companies in the same industry.
HPK's Return On Equity of 6.63% is in line compared to the rest of the industry. HPK outperforms 46.19% of its industry peers.
HPK has a Return On Invested Capital of 7.22%. This is in the better half of the industry: HPK outperforms 63.81% of its industry peers.
HPK had an Average Return On Invested Capital over the past 3 years of 12.14%. This is significantly below the industry average of 21.72%.
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 better Profit Margin (11.37%) than 60.48% of its industry peers.
HPK's Profit Margin has declined in the last couple of years.
The Operating Margin of HPK (29.58%) is better than 71.90% 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 93.33% of its industry peers.
In the last couple of years the Gross Margin of HPK has grown nicely.
| 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
The number of shares outstanding for HPK has been increased compared to 5 years ago.
The debt/assets ratio for HPK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that HPK is in the distress zone and has some risk of bankruptcy.
HPK has a Altman-Z score (1.15) which is in line with its industry peers.
HPK has a debt to FCF ratio of 65.42. This is a negative value and a sign of low solvency as HPK would need 65.42 years to pay back of all of its debts.
With a Debt to FCF ratio value of 65.42, HPK perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
HPK has a Debt/Equity ratio of 0.62. This is a neutral value indicating HPK is somewhat dependend on debt financing.
HPK has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: HPK outperforms 40.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.64
WACC11.2%
2.3 Liquidity
A Current Ratio of 0.87 indicates that HPK may have some problems paying its short term obligations.
The Current ratio of HPK (0.87) is worse than 61.43% of its industry peers.
A Quick Ratio of 0.82 indicates that HPK may have some problems paying its short term obligations.
The Quick ratio of HPK (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for HPK have decreased strongly by -77.36% in the last year.
Measured over the past 5 years, HPK shows a small growth in Earnings Per Share. The EPS has been growing by 4.11% on average per year.
The Revenue has decreased by -3.77% in the past year.
The Revenue has been growing by 165.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-77.36%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-142.86%
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-30.46%
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 -38.84% yearly.
Based on estimates for the next years, HPK will show a very negative growth in Revenue. The Revenue will decrease by -12.87% on average per year.
EPS Next Y-21.78%
EPS Next 2Y-38.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.06%
Revenue Next 2Y-12.87%
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.
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 16.64, the valuation of HPK can be described as correct.
HPK's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.89, HPK is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.17, the valuation of HPK can be described as correct.
HPK's Price/Forward Earnings is on the same level as the industry average.
HPK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPK indicates a rather cheap valuation: HPK is cheaper than 93.81% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HPK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.11 | ||
| EV/EBITDA | 2.39 |
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 -38.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-38.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, HPK has a reasonable but not impressive dividend return.
In the last 3 months the price of HPK has falen by -20.35%. 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 comparable with the industry average which is at 5.87.
Compared to an average S&P500 Dividend Yield of 2.44, HPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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-38.84%
EPS Next 3YN/A
5.99
+0.1 (+1.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.04%
Inst Owner Change0.14%
Ins Owners17.89%
Ins Owner Change0.3%
Market Cap755.52M
Revenue(TTM)1.07B
Net Income(TTM)109.63M
Analysts46.67
Price Target9.69 (61.77%)
Short Float %24.86%
Short Ratio12.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)35.71%
PT rev (3m)-50.65%
EPS NQ rev (1m)35.55%
EPS NQ rev (3m)103.33%
EPS NY rev (1m)11.92%
EPS NY rev (3m)41.98%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-2.22%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 16.17 | ||
| P/S | 0.78 | ||
| P/FCF | 48.11 | ||
| P/OCF | 1.23 | ||
| P/B | 0.46 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 2.39 |
EPS(TTM)0.36
EY6.01%
EPS(NY)0.37
Fwd EY6.18%
FCF(TTM)0.12
FCFY2.08%
OCF(TTM)4.88
OCFY81.39%
SpS7.64
BVpS13.11
TBVpS13.11
PEG (NY)N/A
PEG (5Y)N/A
Graham Number10.31
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 | 1.15 |
F-Score4
WACC11.2%
ROIC/WACC0.64
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)-77.36%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-142.86%
EPS Next Y-21.78%
EPS Next 2Y-38.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.77%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-30.46%
Revenue Next Year-19.06%
Revenue Next 2Y-12.87%
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 4 / 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 -21.78% 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%.