HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
NASDAQ:HPK - Nasdaq - US43114Q1058 - Common Stock - Currency: USD
Taking everything into account, HPK scores 4 out of 10 in our fundamental rating. HPK was compared to 210 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 on the other hand it scores bad on growth.
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.
Of the past 5 years HPK 4 years were profitable.
HPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HPK has a Return On Assets (3.84%) which is comparable to the rest of the industry.
HPK has a Return On Equity of 7.27%. This is comparable to the rest of the industry: HPK outperforms 47.62% of its industry peers.
With an excellent Return On Invested Capital value of 11.52%, HPK belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
HPK had an Average Return On Invested Capital over the past 3 years of 12.14%. This is significantly below the industry average of 23.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 7.27% | ||
| ROIC | 11.52% |
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 of 8.95%. This is comparable to the rest of the industry: HPK outperforms 53.81% of its industry peers.
HPK's Profit Margin has declined in the last couple of years.
HPK has a better Operating Margin (32.53%) than 73.33% of its industry peers.
In the last couple of years the Operating Margin of HPK has declined.
Looking at the Gross Margin, with a value of 87.35%, HPK belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Gross Margin of HPK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.53% | ||
| PM (TTM) | 8.95% | ||
| GM | 87.35% |
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.
The number of shares outstanding for HPK has been reduced compared to 1 year ago.
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 1.47. 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 (1.47) which is in line with its industry peers.
HPK has a debt to FCF ratio of 26.30. This is a negative value and a sign of low solvency as HPK would need 26.30 years to pay back of all of its debts.
The Debt to FCF ratio of HPK (26.30) is comparable to the rest of the industry.
HPK has a Debt/Equity ratio of 0.55. This is a neutral value indicating HPK is somewhat dependend on debt financing.
HPK's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. HPK outperforms 45.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 26.3 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.98
WACC11.71%
2.3 Liquidity
HPK has a Current Ratio of 0.51. This is a bad value and indicates that HPK is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.51, HPK is doing worse than 84.76% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that HPK may have some problems paying its short term obligations.
HPK has a worse Quick ratio (0.48) than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
HPK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.38%.
HPK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.11% yearly.
Looking at the last year, HPK shows a quite strong growth in Revenue. The Revenue has grown by 12.89% in the last year.
The Revenue has been growing by 165.54% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-40.38%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-16.22%
Revenue 1Y (TTM)12.89%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-10.54%
3.2 Future
The Earnings Per Share is expected to decrease by -15.19% on average over the next years. This is quite bad
The Revenue is expected to decrease by -9.51% on average over the next years.
EPS Next Y-44.91%
EPS Next 2Y-15.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.64%
Revenue Next 2Y-9.51%
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 8.94, the valuation of HPK can be described as reasonable.
Based on the Price/Earnings ratio, HPK is valued a bit cheaper than the industry average as 75.24% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.54. HPK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.67, which indicates a very decent valuation of HPK.
HPK's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HPK to the average of the S&P500 Index (36.44), we can say HPK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPK is valued cheaply inside the industry as 93.81% of the companies are valued more expensively.
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 | 26.93 | ||
| EV/EBITDA | 2.22 |
4.3 Compensation for Growth
HPK's earnings are expected to decrease with -15.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.19%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HPK has a Yearly Dividend Yield of 1.92%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.49, HPK is paying slightly less dividend.
HPK's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
HPK has been paying a dividend for over 5 years, so it has already some track record.
The dividend of HPK decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
HPK pays out 18.62% of its income as dividend. This is a sustainable payout ratio.
DP18.62%
EPS Next 2Y-15.19%
EPS Next 3YN/A
8.31
-0.04 (-0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners20.59%
Inst Owner Change0.19%
Ins Owners16.93%
Ins Owner Change0.31%
Market Cap1.05B
Analysts46.67
Price Target19.64 (136.34%)
Short Float %26.01%
Short Ratio14.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP18.62%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.67%
Min EPS beat(2)-51.7%
Max EPS beat(2)20.36%
EPS beat(4)2
Avg EPS beat(4)-8.89%
Min EPS beat(4)-58.25%
Max EPS beat(4)54.02%
EPS beat(8)3
Avg EPS beat(8)-18.21%
EPS beat(12)3
Avg EPS beat(12)-20.67%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-1.51%
Revenue beat(12)6
Avg Revenue beat(12)-3.19%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-13.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-75%
EPS NY rev (1m)0%
EPS NY rev (3m)-56.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-14.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-11.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.94 | ||
| Fwd PE | 11.67 | ||
| P/S | 0.79 | ||
| P/FCF | 26.93 | ||
| P/OCF | 1.55 | ||
| P/B | 0.64 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 2.22 |
EPS(TTM)0.93
EY11.19%
EPS(NY)0.71
Fwd EY8.57%
FCF(TTM)0.31
FCFY3.71%
OCF(TTM)5.36
OCFY64.53%
SpS10.52
BVpS12.96
TBVpS12.96
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 7.27% | ||
| ROCE | 15.45% | ||
| ROIC | 11.52% | ||
| ROICexc | 11.74% | ||
| ROICexgc | 11.74% | ||
| OM | 32.53% | ||
| PM (TTM) | 8.95% | ||
| GM | 87.35% | ||
| FCFM | 2.93% |
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-Score6
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 26.3 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 132.95% | ||
| Cap/Sales | 48.02% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 74.22% | ||
| Profit Quality | 32.77% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.47 |
F-Score6
WACC11.71%
ROIC/WACC0.98
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)-40.38%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-16.22%
EPS Next Y-44.91%
EPS Next 2Y-15.19%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.89%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-10.54%
Revenue Next Year-17.64%
Revenue Next 2Y-9.51%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-3.93%
EBIT growth 3Y49.65%
EBIT growth 5YN/A
EBIT Next Year115.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y106.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y4.95%
OCF growth 3Y67.47%
OCF growth 5YN/A