HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis
USA - NASDAQ:HPK - US43114Q1058 - Common Stock
6.72 USD
-0.17 (-2.47%)
7 USD
+0.28 (+4.17%)
HPK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. HPK has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
In the past year HPK was profitable.
HPK had a positive operating cash flow in the past year.
Of the past 5 years HPK 4 years were profitable.
In the past 5 years HPK always reported a positive cash flow from operatings.
1.2 Ratios
HPK's Return On Assets of 3.55% is in line compared to the rest of the industry. HPK outperforms 52.13% of its industry peers.
With a Return On Equity value of 6.63%, HPK perfoms like the industry average, outperforming 47.87% of the companies in the same industry.
HPK has a Return On Invested Capital of 7.22%. This is in the better half of the industry: HPK outperforms 64.45% of its industry peers.
HPK had an Average Return On Invested Capital over the past 3 years of 12.14%. This is significantly below the industry average of 21.53%.
The 3 year average ROIC (12.14%) for HPK is well above the current ROIC(7.22%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.63% | ||
| ROIC | 7.22% |
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 better Profit Margin (11.37%) than 60.19% of its industry peers.
In the last couple of years the Profit Margin of HPK has declined.
HPK has a better Operating Margin (29.58%) than 72.99% of its industry peers.
In the last couple of years the Operating Margin of HPK has declined.
Looking at the Gross Margin, with a value of 85.64%, HPK belongs to the top of the industry, outperforming 92.89% 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 | 29.58% | ||
| PM (TTM) | 11.37% | ||
| GM | 85.64% |
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
HPK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HPK has less shares outstanding than it did 1 year ago.
HPK has more shares outstanding than it did 5 years ago.
HPK has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.18, we must say that HPK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.18, HPK is in line with its industry, outperforming 47.87% of the companies in the same industry.
The Debt to FCF ratio of HPK is 65.42, which is on the high side as it means it would take HPK, 65.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 65.42, HPK is in line with its industry, outperforming 40.28% of the companies in the same industry.
HPK has a Debt/Equity ratio of 0.62. This is a neutral value indicating HPK is somewhat dependend on debt financing.
HPK's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. HPK outperforms 41.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Altman-Z | 1.18 |
ROIC/WACC0.64
WACC11.28%
2.3 Liquidity
A Current Ratio of 0.87 indicates that HPK may have some problems paying its short term obligations.
HPK has a Current ratio of 0.87. This is in the lower half of the industry: HPK underperforms 62.09% of its industry peers.
A Quick Ratio of 0.82 indicates that HPK may have some problems paying its short term obligations.
HPK's Quick ratio of 0.82 is in line compared to the rest of the industry. HPK outperforms 43.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for HPK have decreased strongly by -43.42% in the last year.
HPK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.11% yearly.
HPK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -35.61%.
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)-43.42%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-9.52%
Revenue 1Y (TTM)-35.61%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-27.2%
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 -14.89% yearly.
HPK is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.48% yearly.
EPS Next Y-30.12%
EPS Next 2Y-14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-17.22%
Revenue Next 2Y-9.48%
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
HPK is valuated cheaply with a Price/Earnings ratio of 7.81.
84.36% 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 27.40, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.37, which indicates a very decent valuation of HPK.
Based on the Price/Forward Earnings ratio, HPK is valued a bit cheaper than the industry average as 73.46% of the companies are valued more expensively.
HPK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPK is valued cheaper than 91.47% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HPK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.97 | ||
| EV/EBITDA | 2.51 |
4.3 Compensation for Growth
The decent profitability rating of HPK may justify a higher PE ratio.
A cheap valuation may be justified as HPK's earnings are expected to decrease with -14.89% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HPK has a Yearly Dividend Yield of 2.32%.
HPK's Dividend Yield is comparable with the industry average which is at 6.28.
Compared to an average S&P500 Dividend Yield of 2.36, HPK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
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
20.09% of the earnings are spent on dividend by HPK. This is a low number and sustainable payout ratio.
DP20.09%
EPS Next 2Y-14.89%
EPS Next 3YN/A
6.72
-0.17 (-2.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.04%
Inst Owner Change0.24%
Ins Owners17.89%
Ins Owner Change0.31%
Market Cap847.59M
Analysts42.5
Price Target7.14 (6.25%)
Short Float %29.8%
Short Ratio11.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend0.17
Dividend Growth(5Y)N/A
DP20.09%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.05%
Min EPS beat(2)0.95%
Max EPS beat(2)135.15%
EPS beat(4)3
Avg EPS beat(4)34.6%
Min EPS beat(4)-51.7%
Max EPS beat(4)135.15%
EPS beat(8)4
Avg EPS beat(8)2.29%
EPS beat(12)4
Avg EPS beat(12)-9.68%
EPS beat(16)4
Avg EPS beat(16)-19.98%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)2.82%
Revenue beat(4)2
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)2.82%
Revenue beat(8)4
Avg Revenue beat(8)-2.12%
Revenue beat(12)5
Avg Revenue beat(12)-4.35%
Revenue beat(16)8
Avg Revenue beat(16)-2.83%
PT rev (1m)0%
PT rev (3m)-63.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)80.01%
EPS NY rev (1m)0%
EPS NY rev (3m)26.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.81 | ||
| Fwd PE | 9.37 | ||
| P/S | 0.88 | ||
| P/FCF | 53.97 | ||
| P/OCF | 1.38 | ||
| P/B | 0.51 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 2.51 |
EPS(TTM)0.86
EY12.8%
EPS(NY)0.72
Fwd EY10.67%
FCF(TTM)0.12
FCFY1.85%
OCF(TTM)4.88
OCFY72.54%
SpS7.64
BVpS13.11
TBVpS13.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 6.63% | ||
| ROCE | 9.67% | ||
| ROIC | 7.22% | ||
| ROICexc | 7.27% | ||
| ROICexgc | 7.27% | ||
| OM | 29.58% | ||
| PM (TTM) | 11.37% | ||
| GM | 85.64% | ||
| FCFM | 1.63% |
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-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 65.42 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 132.34% | ||
| Cap/Sales | 62.14% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 83.32% | ||
| Profit Quality | 14.32% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.18 |
F-Score4
WACC11.28%
ROIC/WACC0.64
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)-43.42%
EPS 3Y4.11%
EPS 5YN/A
EPS Q2Q%-9.52%
EPS Next Y-30.12%
EPS Next 2Y-14.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-35.61%
Revenue growth 3Y69.37%
Revenue growth 5Y165.54%
Sales Q2Q%-27.2%
Revenue Next Year-17.22%
Revenue Next 2Y-9.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-48.05%
EBIT growth 3Y49.65%
EBIT growth 5YN/A
EBIT Next Year117%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y102.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-14.54%
OCF growth 3Y67.47%
OCF growth 5YN/A