HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
NASDAQ:HPK - Nasdaq - US43114Q1058 - Common Stock - Currency: USD
Overall HPK gets a fundamental rating of 4 out of 10. We evaluated HPK against 213 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 may be a bit undervalued, certainly considering the very reasonable score 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.
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
The Return On Assets of HPK (3.00%) is comparable to the rest of the industry.
HPK's Return On Equity of 5.73% is in line compared to the rest of the industry. HPK outperforms 43.19% of its industry peers.
HPK has a Return On Invested Capital of 11.93%. This is amongst the best in the industry. HPK outperforms 80.28% 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 25.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 5.73% | ||
| ROIC | 11.93% |
ROA(3y)6.16%
ROA(5y)1.28%
ROE(3y)12.05%
ROE(5y)4.96%
ROIC(3y)12.14%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 6.76%, HPK perfoms like the industry average, outperforming 46.01% of the companies in the same industry.
In the last couple of years the Profit Margin of HPK has declined.
HPK has a better Operating Margin (32.73%) than 71.36% 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 88.03%, HPK belongs to the top of the industry, outperforming 94.37% 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 | 32.73% | ||
| PM (TTM) | 6.76% | ||
| GM | 88.03% |
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 below the Cost of Capital (WACC), so HPK is destroying 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.
Compared to 1 year ago, HPK has an improved debt to assets ratio.
2.2 Solvency
HPK has an Altman-Z score of 1.50. 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 (1.50) which is in line with its industry peers.
The Debt to FCF ratio of HPK is 12.28, which is on the high side as it means it would take HPK, 12.28 years of fcf income to pay off all of its debts.
HPK has a Debt to FCF ratio (12.28) which is comparable to the rest of the industry.
HPK has a Debt/Equity ratio of 0.58. This is a neutral value indicating HPK is somewhat dependend on debt financing.
HPK has a Debt to Equity ratio (0.58) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.28 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.93
WACC12.79%
2.3 Liquidity
A Current Ratio of 0.69 indicates that HPK may have some problems paying its short term obligations.
The Current ratio of HPK (0.69) is worse than 75.59% of its industry peers.
A Quick Ratio of 0.65 indicates that HPK may have some problems paying its short term obligations.
HPK's Quick ratio of 0.65 is on the low side compared to the rest of the industry. HPK is outperformed by 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
HPK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.34%.
HPK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.11% yearly.
The Revenue has grown by 22.12% in the past year. This is a very strong growth!
Measured over the past years, HPK shows a very strong growth in Revenue. The Revenue has been growing by 165.54% on average per year.
EPS 1Y (TTM)-37.34%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-90.91%
Revenue 1Y (TTM)22.12%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-22.03%
3.2 Future
Based on estimates for the next years, HPK will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.72% on average per year.
The Revenue is expected to decrease by -5.16% on average over the next years.
EPS Next Y25.79%
EPS Next 2Y18.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-6.96%
Revenue Next 2Y-5.16%
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 accelerating.
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 8.02, the valuation of HPK can be described as very reasonable.
74.18% of the companies in the same industry are more expensive than HPK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HPK to the average of the S&P500 Index (28.10), we can say HPK is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.38, the valuation of HPK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HPK indicates a rather cheap valuation: HPK is cheaper than 82.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HPK to the average of the S&P500 Index (20.74), we can say HPK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 6.38 |
4.2 Price Multiples
93.43% of the companies in the same industry are more expensive than HPK, based on the Enterprise Value to EBITDA ratio.
66.67% of the companies in the same industry are more expensive than HPK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.73 | ||
| EV/EBITDA | 2.08 |
4.3 Compensation for Growth
HPK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HPK's earnings are expected to grow with 18.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y18.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HPK has a Yearly Dividend Yield of 1.91%.
In the last 3 months the price of HPK has falen by -42.59%. 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 7.27.
HPK's Dividend Yield is slightly below the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
24.19% of the earnings are spent on dividend by HPK. This is a low number and sustainable payout ratio.
DP24.19%
EPS Next 2Y18.72%
EPS Next 3YN/A
7.94
-0.39 (-4.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners20.77%
Inst Owner Change-0.42%
Ins Owners16.82%
Ins Owner Change0.06%
Market Cap1.00B
Analysts48
Price Target18.53 (133.38%)
Short Float %26.5%
Short Ratio15.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP24.19%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.16%
Min EPS beat(2)-51.7%
Max EPS beat(2)54.02%
EPS beat(4)1
Avg EPS beat(4)-14.25%
Min EPS beat(4)-58.25%
Max EPS beat(4)54.02%
EPS beat(8)2
Avg EPS beat(8)-25.83%
EPS beat(12)2
Avg EPS beat(12)-33.53%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-5.73%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-5.73%
Max Revenue beat(4)0.68%
Revenue beat(8)3
Avg Revenue beat(8)-3.53%
Revenue beat(12)5
Avg Revenue beat(12)-5.01%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-18.35%
PT rev (3m)-21.86%
EPS NQ rev (1m)-13.75%
EPS NQ rev (3m)42.56%
EPS NY rev (1m)-13.14%
EPS NY rev (3m)28.04%
Revenue NQ rev (1m)-2.34%
Revenue NQ rev (3m)-0.38%
Revenue NY rev (1m)-3.61%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.02 | ||
| Fwd PE | 6.38 | ||
| P/S | 0.74 | ||
| P/FCF | 11.73 | ||
| P/OCF | 1.45 | ||
| P/B | 0.62 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 2.08 |
EPS(TTM)0.99
EY12.47%
EPS(NY)1.25
Fwd EY15.68%
FCF(TTM)0.68
FCFY8.53%
OCF(TTM)5.48
OCFY68.97%
SpS10.77
BVpS12.71
TBVpS12.71
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 5.73% | ||
| ROCE | 15.99% | ||
| ROIC | 11.93% | ||
| ROICexc | 12.31% | ||
| ROICexgc | 12.31% | ||
| OM | 32.73% | ||
| PM (TTM) | 6.76% | ||
| GM | 88.03% | ||
| FCFM | 6.29% |
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-Score7
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 12.28 | ||
| Debt/EBITDA | 0.98 | ||
| Cap/Depr | 120.83% | ||
| Cap/Sales | 44.58% | ||
| Interest Coverage | 2.92 | ||
| Cash Conversion | 73.06% | ||
| Profit Quality | 93.02% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.5 |
F-Score7
WACC12.79%
ROIC/WACC0.93
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)-37.34%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-90.91%
EPS Next Y25.79%
EPS Next 2Y18.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.12%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-22.03%
Revenue Next Year-6.96%
Revenue Next 2Y-5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.16%
EBIT growth 3Y49.65%
EBIT growth 5YN/A
EBIT Next Year144.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y133.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-8.73%
OCF growth 3Y67.47%
OCF growth 5YN/A