4.43 USD
+0.1 (+2.31%)
4.43 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to HPK. HPK was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of HPK get a neutral evaluation. Nothing too spectacular is happening here. HPK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year HPK was profitable.
- In the past year HPK had a positive cash flow from operations.
- HPK had positive earnings in 4 of the past 5 years.
- In the past 5 years HPK always reported a positive cash flow from operatings.
1.2 Ratios
- HPK's Return On Assets of 1.42% is on the low side compared to the rest of the industry. HPK is outperformed by 60.87% of its industry peers.
- HPK has a Return On Equity of 2.81%. This is in the lower half of the industry: HPK underperforms 60.87% of its industry peers.
- The Return On Invested Capital of HPK (5.95%) is comparable to the rest of the 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 21.94%.
- The 3 year average ROIC (12.14%) for HPK is well above the current ROIC(5.95%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 2.81% | ||
| ROIC | 5.95% |
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 (5.18%) which is comparable to the rest of the industry.
- HPK's Profit Margin has declined in the last couple of years.
- HPK has a better Operating Margin (27.59%) than 68.60% of its industry peers.
- In the last couple of years the Operating Margin of HPK has declined.
- With an excellent Gross Margin value of 84.53%, HPK belongs to the best of the industry, outperforming 92.27% of the companies in the same industry.
- HPK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.59% | ||
| PM (TTM) | 5.18% | ||
| GM | 84.53% |
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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HPK is creating some value.
- The number of shares outstanding for HPK has been reduced compared to 1 year ago.
- The number of shares outstanding for HPK has been increased compared to 5 years ago.
- HPK has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.98, we must say that HPK is in the distress zone and has some risk of bankruptcy.
- HPK has a Altman-Z score of 0.98. This is comparable to the rest of the industry: HPK outperforms 43.96% of its industry peers.
- The Debt to FCF ratio of HPK is 109.22, which is on the high side as it means it would take HPK, 109.22 years of fcf income to pay off all of its debts.
- HPK has a Debt to FCF ratio of 109.22. This is comparable to the rest of the industry: HPK outperforms 40.58% of its industry peers.
- A Debt/Equity ratio of 0.71 indicates that HPK is somewhat dependend on debt financing.
- HPK has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: HPK underperforms 62.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 109.23 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.5
WACC11.86%
2.3 Liquidity
- HPK has a Current Ratio of 1.65. This is a normal value and indicates that HPK is financially healthy and should not expect problems in meeting its short term obligations.
- HPK has a better Current ratio (1.65) than 70.05% of its industry peers.
- HPK has a Quick Ratio of 1.58. This is a normal value and indicates that HPK is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of HPK (1.58) is better than 73.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- HPK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -77.36%.
- 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.
- HPK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.08%.
- 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)-77.36%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-142.86%
Revenue 1Y (TTM)-38.08%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-30.46%
3.2 Future
- The Earnings Per Share is expected to decrease by -41.78% on average over the next years. This is quite bad
- HPK is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -14.73% yearly.
EPS Next Y-65.31%
EPS Next 2Y-41.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-20.48%
Revenue Next 2Y-14.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- A Price/Earnings ratio of 12.31 indicates a correct valuation of HPK.
- Based on the Price/Earnings ratio, HPK is valued a bit cheaper than 71.98% of the companies in the same industry.
- HPK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- HPK is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPK is valued cheaply inside the industry as 97.10% 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 | 50.97 | ||
| EV/EBITDA | 2.4 |
4.3 Compensation for Growth
- HPK's earnings are expected to decrease with -41.78% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.11%, HPK is a good candidate for dividend investing.
- In the last 3 months the price of HPK has falen by -33.38%. 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 a higher than the industry average which is at 3.73.
- HPK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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
- 49.59% of the earnings are spent on dividend by HPK. This is a bit on the high side, but may be sustainable.
DP49.59%
EPS Next 2Y-41.78%
EPS Next 3YN/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.
Can you provide the valuation status for HIGHPEAK ENERGY INC?
ChartMill assigns a valuation rating of 3 / 10 to HIGHPEAK ENERGY INC (HPK). This can be considered as Overvalued.
How profitable is HIGHPEAK ENERGY INC (HPK) stock?
HIGHPEAK ENERGY INC (HPK) has a profitability rating of 5 / 10.
Can you provide the financial health for HPK stock?
The financial health rating of HIGHPEAK ENERGY INC (HPK) is 4 / 10.
Is the dividend of HIGHPEAK ENERGY INC sustainable?
The dividend rating of HIGHPEAK ENERGY INC (HPK) is 5 / 10 and the dividend payout ratio is 49.59%.