HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
NASDAQ:HPK - Nasdaq - US43114Q1058 - Common Stock - Currency: USD
HPK gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 211 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.
HPK had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.84%, HPK perfoms like the industry average, outperforming 53.55% of the companies in the same industry.
HPK has a Return On Equity of 7.27%. This is comparable to the rest of the industry: HPK outperforms 47.39% of its industry peers.
HPK has a better Return On Invested Capital (11.52%) than 82.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HPK is significantly below the industry average of 23.70%.
| 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 (8.95%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of HPK has declined.
Looking at the Operating Margin, with a value of 32.53%, HPK is in the better half of the industry, outperforming 72.99% of the companies in the same industry.
In the last couple of years the Operating Margin of HPK has declined.
HPK has a Gross Margin of 87.35%. This is amongst the best in the industry. HPK outperforms 95.26% of its industry peers.
HPK's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HPK is still 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 1.58, we must say that HPK is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, HPK perfoms like the industry average, outperforming 56.40% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 26.30, HPK perfoms like the industry average, outperforming 43.60% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that HPK is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, HPK perfoms like the industry average, outperforming 45.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 26.3 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.06
WACC10.89%
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.
HPK has a Current ratio of 0.51. This is amonst the worse of the industry: HPK underperforms 84.83% of its industry peers.
HPK has a Quick 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.
The Quick ratio of HPK (0.48) is worse than 82.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for HPK have decreased strongly by -40.38% in the last year.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.89%.
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)-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
HPK is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.19% yearly.
Based on estimates for the next years, HPK will show a decrease in Revenue. The Revenue will decrease by -9.51% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.97 indicates a reasonable valuation of HPK.
68.72% of the companies in the same industry are more expensive than HPK, based on the Price/Earnings ratio.
HPK is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.32, HPK is valued correctly.
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 (21.90), we can say HPK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 14.32 |
4.2 Price Multiples
91.47% of the companies in the same industry are more expensive than HPK, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HPK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.06 | ||
| EV/EBITDA | 2.49 |
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 1.61%. Purely for dividend investing, there may be better candidates out there.
HPK's Dividend Yield is slightly below the industry average, which is at 6.66.
HPK's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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
18.62% of the earnings are spent on dividend by HPK. This is a low number and sustainable payout ratio.
DP18.62%
EPS Next 2Y-15.19%
EPS Next 3YN/A
10.2
-0.12 (-1.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners20.59%
Inst Owner Change-0.46%
Ins Owners16.93%
Ins Owner Change0.3%
Market Cap1.29B
Analysts46.67
Price Target19.64 (92.55%)
Short Float %28.93%
Short Ratio15.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)12.14%
PT rev (3m)-13.48%
EPS NQ rev (1m)180%
EPS NQ rev (3m)-78.12%
EPS NY rev (1m)33.89%
EPS NY rev (3m)-61.96%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-17.57%
Revenue NY rev (1m)2.25%
Revenue NY rev (3m)-12.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 14.32 | ||
| P/S | 0.97 | ||
| P/FCF | 33.06 | ||
| P/OCF | 1.9 | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 2.49 |
EPS(TTM)0.93
EY9.12%
EPS(NY)0.71
Fwd EY6.98%
FCF(TTM)0.31
FCFY3.02%
OCF(TTM)5.36
OCFY52.57%
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 | 1.58 |
F-Score6
WACC10.89%
ROIC/WACC1.06
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