3.89 USD
-0.38 (-8.9%)
3.89 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. HPK has an average financial health and profitability rating. HPK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- HPK had positive earnings in the past year.
- In the past year HPK had a positive cash flow from operations.
- 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 1.42%, HPK is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
- HPK has a worse Return On Equity (2.81%) than 60.87% of its industry peers.
- HPK's Return On Invested Capital of 5.95% is in line compared to the rest of the industry. HPK outperforms 53.14% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HPK is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (5.95%) for HPK is well below the 3 year average (12.14%), which needs to be investigated, but indicates that HPK had better years and this may not be a problem.
| 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 in line with its industry peers.
- In the last couple of years the Profit Margin of HPK has declined.
- HPK has a better Operating Margin (27.59%) than 68.60% of its industry peers.
- HPK's Operating Margin has declined in the last couple of years.
- The Gross Margin of HPK (84.53%) is better than 92.27% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HPK is still creating some value.
- Compared to 1 year ago, HPK has less shares outstanding
- HPK has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HPK has an improved debt to assets ratio.
2.2 Solvency
- HPK has an Altman-Z score of 0.95. This is a bad value and indicates that HPK is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.95, HPK is in line with its industry, outperforming 44.93% of the companies in the same industry.
- HPK has a debt to FCF ratio of 109.22. This is a negative value and a sign of low solvency as HPK would need 109.22 years to pay back of all of its debts.
- HPK has a Debt to FCF ratio (109.22) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.71 indicates that HPK is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.71, HPK is doing worse than 62.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 109.23 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.5
WACC11.88%
2.3 Liquidity
- A Current Ratio of 1.65 indicates that HPK should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.65, HPK is in the better half of the industry, outperforming 70.05% of the companies in the same industry.
- A Quick Ratio of 1.58 indicates that HPK should not have too much problems paying its short term obligations.
- HPK has a Quick ratio of 1.58. This is in the better half of the industry: HPK outperforms 73.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- The earnings per share for HPK have decreased strongly by -77.36% in the last year.
- The Earnings Per Share has been growing slightly by 4.11% on average over the past years.
- HPK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.08%.
- HPK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 165.54% yearly.
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
- HPK is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -41.78% yearly.
- HPK is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.70% yearly.
EPS Next Y-65.31%
EPS Next 2Y-41.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-19.98%
Revenue Next 2Y-13.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 10.81, the valuation of HPK can be described as reasonable.
- Based on the Price/Earnings ratio, HPK is valued a bit cheaper than 79.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, HPK is valued rather cheaply.
- The Forward Price/Earnings Ratio is negative for HPK. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.81 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- HPK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HPK is cheaper than 96.62% of the companies in the same industry.
- HPK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.75 | ||
| EV/EBITDA | 2.3 |
4.3 Compensation for Growth
- A cheap valuation may be justified as HPK's earnings are expected to decrease with -41.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-41.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- HPK has a Yearly Dividend Yield of 3.39%.
- In the last 3 months the price of HPK has falen by -44.27%. 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 comparable with the industry average which is at 3.75.
- HPK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.39% |
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 4 / 10 and the dividend payout ratio is 49.59%.