LAREDO PETROLEUM INC (LPI) Fundamental Analysis & Valuation

NYSE:LPI • US5168062058

Current stock price

48.09 USD
+0.54 (+1.14%)
At close:
48.13 USD
+0.04 (+0.08%)
After Hours:

This LPI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. LPI Profitability Analysis

1.1 Basic Checks

  • In the past year LPI was profitable.
  • In the past year LPI had a positive cash flow from operations.
LPI Yearly Net Income VS EBIT VS OCF VS FCFLPI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 500M -500M

1.2 Ratios

  • The Return On Assets of LPI (26.00%) is better than 87.96% of its industry peers.
  • Looking at the Return On Equity, with a value of 72.91%, LPI belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
  • LPI's Return On Invested Capital of 39.96% is amongst the best of the industry. LPI outperforms 92.13% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for LPI is significantly below the industry average of 22.30%.
  • The 3 year average ROIC (12.39%) for LPI is below the current ROIC(39.96%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 26%
ROE 72.91%
ROIC 39.96%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.39%
ROIC(5y)N/A
LPI Yearly ROA, ROE, ROICLPI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 1K 2K 3K 4K

1.3 Margins

  • The Profit Margin of LPI (35.99%) is better than 78.24% of its industry peers.
  • LPI's Profit Margin has declined in the last couple of years.
  • LPI has a better Operating Margin (56.87%) than 81.02% of its industry peers.
  • LPI's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 56.87%
PM (TTM) 35.99%
GM N/A
OM growth 3Y13.26%
OM growth 5Y29.85%
PM growth 3Y-29.24%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
LPI Yearly Profit, Operating, Gross MarginsLPI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 50 -50 -100

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2

2. LPI Health Analysis

2.1 Basic Checks

  • LPI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for LPI has been increased compared to 1 year ago.
  • LPI has a better debt/assets ratio than last year.
LPI Yearly Shares OutstandingLPI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 5M 10M 15M
LPI Yearly Total Debt VS Total AssetsLPI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of 1.35, we must say that LPI is in the distress zone and has some risk of bankruptcy.
  • LPI's Altman-Z score of 1.35 is in line compared to the rest of the industry. LPI outperforms 47.22% of its industry peers.
  • LPI has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as LPI would need 3.42 years to pay back of all of its debts.
  • LPI's Debt to FCF ratio of 3.42 is in line compared to the rest of the industry. LPI outperforms 56.94% of its industry peers.
  • A Debt/Equity ratio of 1.18 is on the high side and indicates that LPI has dependencies on debt financing.
  • LPI has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: LPI underperforms 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 3.42
Altman-Z 1.35
ROIC/WACC4.29
WACC9.31%
LPI Yearly LT Debt VS Equity VS FCFLPI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B

2.3 Liquidity

  • LPI has a Current Ratio of 0.47. This is a bad value and indicates that LPI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • LPI has a worse Current ratio (0.47) than 85.19% of its industry peers.
  • LPI has a Quick Ratio of 0.47. This is a bad value and indicates that LPI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • LPI has a Quick ratio of 0.47. This is amonst the worse of the industry: LPI underperforms 83.80% of its industry peers.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
LPI Yearly Current Assets VS Current LiabilitesLPI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. LPI Growth Analysis

3.1 Past

  • LPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 152.65%, which is quite impressive.
  • Measured over the past years, LPI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.47% on average per year.
  • Looking at the last year, LPI shows a very strong growth in Revenue. The Revenue has grown by 82.29%.
  • The Revenue has been growing by 18.47% on average over the past years. This is quite good.
EPS 1Y (TTM)152.65%
EPS 3Y-22.24%
EPS 5Y-2.47%
EPS Q2Q%188.04%
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y18.47%
Sales Q2Q%22.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 40.89% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, LPI will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y171.8%
EPS Next 2Y93.44%
EPS Next 3Y56.92%
EPS Next 5Y40.89%
Revenue Next Year33.14%
Revenue Next 2Y9.46%
Revenue Next 3Y7.39%
Revenue Next 5Y2.84%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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.
LPI Yearly Revenue VS EstimatesLPI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
LPI Yearly EPS VS EstimatesLPI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

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9

4. LPI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 2.24, the valuation of LPI can be described as very cheap.
  • Based on the Price/Earnings ratio, LPI is valued cheaply inside the industry as 97.69% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of LPI to the average of the S&P500 Index (25.73), we can say LPI is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 1.49, the valuation of LPI can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, LPI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of LPI to the average of the S&P500 Index (23.72), we can say LPI is valued rather cheaply.
Industry RankSector Rank
PE 2.24
Fwd PE 1.49
LPI Price Earnings VS Forward Price EarningsLPI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 98.61% of the companies in the same industry are more expensive than LPI, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, LPI is valued cheaper than 94.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.34
EV/EBITDA 1.33
LPI Per share dataLPI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as LPI's earnings are expected to grow with 56.92% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y93.44%
EPS Next 3Y56.92%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. LPI Dividend Analysis

5.1 Amount

  • No dividends for LPI!.
Industry RankSector Rank
Dividend Yield N/A

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LPI Fundamentals: All Metrics, Ratios and Statistics

LAREDO PETROLEUM INC

NYSE:LPI (1/6/2023, 9:16:20 PM)

After market: 48.13 +0.04 (+0.08%)

48.09

+0.54 (+1.14%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-03
Earnings (Next)02-20
Inst Owners165.19%
Inst Owner Change-79.89%
Ins Owners380.65%
Ins Owner Change0%
Market Cap808.56M
Revenue(TTM)2.03B
Net Income(TTM)729.56M
Analysts73.33
Price Target87.98 (82.95%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-15.66%
Max EPS beat(2)-0.34%
EPS beat(4)1
Avg EPS beat(4)-7.56%
Min EPS beat(4)-15.66%
Max EPS beat(4)0.49%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)20.98%
Min Revenue beat(2)19.59%
Max Revenue beat(2)22.36%
Revenue beat(4)4
Avg Revenue beat(4)28.74%
Min Revenue beat(4)19.59%
Max Revenue beat(4)43.7%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.68%
PT rev (3m)N/A
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 2.24
Fwd PE 1.49
P/S 0.4
P/FCF 2.34
P/OCF 0.87
P/B 0.81
P/tB 0.81
EV/EBITDA 1.33
EPS(TTM)21.45
EY44.6%
EPS(NY)32.37
Fwd EY67.3%
FCF(TTM)20.53
FCFY42.69%
OCF(TTM)55.33
OCFY115.05%
SpS120.55
BVpS59.52
TBVpS59.52
PEG (NY)0.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 26%
ROE 72.91%
ROCE N/A
ROIC 39.96%
ROICexc 40.86%
ROICexgc 40.86%
OM 56.87%
PM (TTM) 35.99%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.39%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y26.49%
ROICexgc growth 5Y46.87%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y13.26%
OM growth 5Y29.85%
PM growth 3Y-29.24%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 3.42
Debt/EBITDA 0.81
Cap/Depr 194.29%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 47.31%
Current Ratio 0.47
Quick Ratio 0.47
Altman-Z 1.35
F-Score9
WACC9.31%
ROIC/WACC4.29
Cap/Depr(3y)204.47%
Cap/Depr(5y)260.57%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)152.65%
EPS 3Y-22.24%
EPS 5Y-2.47%
EPS Q2Q%188.04%
EPS Next Y171.8%
EPS Next 2Y93.44%
EPS Next 3Y56.92%
EPS Next 5Y40.89%
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y18.47%
Sales Q2Q%22.38%
Revenue Next Year33.14%
Revenue Next 2Y9.46%
Revenue Next 3Y7.39%
Revenue Next 5Y2.84%
EBIT growth 1Y170.17%
EBIT growth 3Y22.35%
EBIT growth 5Y53.83%
EBIT Next Year229.22%
EBIT Next 3Y56.48%
EBIT Next 5Y32.04%
FCF growth 1Y280.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y143.65%
OCF growth 3Y-2.62%
OCF growth 5Y6.87%

LAREDO PETROLEUM INC / LPI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for LAREDO PETROLEUM INC?

ChartMill assigns a fundamental rating of 6 / 10 to LPI.


What is the valuation status of LAREDO PETROLEUM INC (LPI) stock?

ChartMill assigns a valuation rating of 10 / 10 to LAREDO PETROLEUM INC (LPI). This can be considered as Undervalued.


What is the profitability of LPI stock?

LAREDO PETROLEUM INC (LPI) has a profitability rating of 9 / 10.


What is the financial health of LAREDO PETROLEUM INC (LPI) stock?

The financial health rating of LAREDO PETROLEUM INC (LPI) is 2 / 10.


Can you provide the expected EPS growth for LPI stock?

The Earnings per Share (EPS) of LAREDO PETROLEUM INC (LPI) is expected to grow by 171.8% in the next year.