LAREDO PETROLEUM INC (LPI)
US5168062058 - Common Stock
Overall LPI gets a fundamental rating of 5 out of 10. We evaluated LPI against 214 industry peers in the Oil, Gas & Consumable Fuels industry. While LPI is still in line with the averages on profitability rating, there are concerns on its financial health. LPI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
LPI had positive earnings in the past year.
In the past year LPI had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: LPI reported negative net income in multiple years.
In the past 5 years LPI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 26.00%, LPI belongs to the top of the industry, outperforming 87.96% of the companies in the same industry.
LPI's Return On Equity of 72.91% is amongst the best of the industry. LPI outperforms 92.13% of its industry peers.
LPI has a better Return On Invested Capital (39.96%) than 92.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LPI is significantly below the industry average of 44.55%.
The last Return On Invested Capital (39.96%) for LPI is above the 3 year average (12.39%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
LPI has a Profit Margin of 35.99%. This is in the better half of the industry: LPI outperforms 78.24% of its industry peers.
In the last couple of years the Profit Margin of LPI has declined.
LPI has a better Operating Margin (56.87%) than 81.02% of its industry peers.
In the last couple of years the Operating Margin of LPI has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), LPI is creating value.
LPI has more shares outstanding than it did 1 year ago.
LPI has a better debt/assets ratio than last year.
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 has a Altman-Z score (1.35) which is comparable to the rest of the industry.
The Debt to FCF ratio of LPI is 3.42, which is a good value as it means it would take LPI, 3.42 years of fcf income to pay off all of its debts.
LPI has a Debt to FCF ratio (3.42) which is in line with its industry peers.
LPI has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 1.35 |
ROIC/WACC4.29
WACC9.31%
2.3 Liquidity
A Current Ratio of 0.47 indicates that LPI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.47, LPI is doing worse than 85.19% of the companies in the same industry.
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.
With a Quick ratio value of 0.47, LPI is not doing good in the industry: 83.80% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
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.
LPI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.47% yearly.
LPI shows a strong growth in Revenue. In the last year, 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 growth Q2Q188.04%
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y18.47%
Revenue growth Q2Q22.38%
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
LPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
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
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
LPI is valuated cheaply with a Price/Earnings ratio of 2.24.
Based on the Price/Earnings ratio, LPI is valued cheaper than 97.69% of the companies in the same industry.
LPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 1.49, which indicates a rather cheap valuation of LPI.
LPI's Price/Forward Earnings ratio is rather cheap when compared to the industry. LPI is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, LPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPI is valued cheaper than 98.61% of the companies in the same industry.
94.91% of the companies in the same industry are more expensive than LPI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 1.33 |
4.3 Compensation for Growth
LPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LPI has a very decent profitability rating, which may justify a higher PE ratio.
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%
5. Dividend
5.1 Amount
LPI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LAREDO PETROLEUM INC
NYSE:LPI (1/6/2023, 8:16:20 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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap808.56M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26% | ||
| ROE | 72.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 56.87% | ||
| PM (TTM) | 35.99% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)152.65%
EPS 3Y-22.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y171.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y