Logo image of HPK

HIGHPEAK ENERGY INC (HPK) Stock Fundamental Analysis

NASDAQ:HPK - Nasdaq - US43114Q1058 - Common Stock - Currency: USD

13.63  -0.35 (-2.5%)

After market: 13.77 +0.14 (+1.03%)

Fundamental Rating

4

Overall HPK gets a fundamental rating of 4 out of 10. We evaluated HPK against 212 industry peers in the Oil, Gas & Consumable Fuels industry. While HPK is still in line with the averages on profitability rating, there are concerns on its financial health. HPK has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

In the past year HPK was profitable.
HPK had a positive operating cash flow in the past year.
In multiple years HPK reported negative net income over the last 5 years.
HPK had a positive operating cash flow in 4 of the past 5 years.
HPK Yearly Net Income VS EBIT VS OCF VS FCFHPK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M

1.2 Ratios

Looking at the Return On Assets, with a value of 5.53%, HPK is in line with its industry, outperforming 53.40% of the companies in the same industry.
HPK has a Return On Equity (10.54%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 12.98%, HPK is in the better half of the industry, outperforming 77.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HPK is significantly below the industry average of 28.73%.
The 3 year average ROIC (12.90%) for HPK is below the current ROIC(12.98%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.53%
ROE 10.54%
ROIC 12.98%
ROA(3y)7.49%
ROA(5y)0.25%
ROE(3y)13.61%
ROE(5y)3.39%
ROIC(3y)12.9%
ROIC(5y)N/A
HPK Yearly ROA, ROE, ROICHPK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

HPK has a Profit Margin (11.88%) which is comparable to the rest of the industry.
Looking at the Operating Margin, with a value of 33.52%, HPK is in the better half of the industry, outperforming 68.93% of the companies in the same industry.
With an excellent Gross Margin value of 88.31%, HPK belongs to the best of the industry, outperforming 93.69% of the companies in the same industry.
In the last couple of years the Gross Margin of HPK has grown nicely.
Industry RankSector Rank
OM 33.52%
PM (TTM) 11.88%
GM 88.31%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.73%
GM growth 5YN/A
HPK Yearly Profit, Operating, Gross MarginsHPK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

More info and screens

2

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.
Compared to 1 year ago, HPK has more shares outstanding
Compared to 5 years ago, HPK has more shares outstanding
Compared to 1 year ago, HPK has a worse debt to assets ratio.
HPK Yearly Shares OutstandingHPK Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
HPK Yearly Total Debt VS Total AssetsHPK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

HPK has an Altman-Z score of 1.88. This is not the best score and indicates that HPK is in the grey zone with still only limited risk for bankruptcy at the moment.
HPK has a Altman-Z score of 1.88. This is comparable to the rest of the industry: HPK outperforms 56.31% of its industry peers.
The Debt to FCF ratio of HPK is 6.55, which is on the high side as it means it would take HPK, 6.55 years of fcf income to pay off all of its debts.
HPK has a Debt to FCF ratio (6.55) which is comparable to the rest of the industry.
HPK has a Debt/Equity ratio of 0.59. This is a neutral value indicating HPK is somewhat dependend on debt financing.
HPK has a Debt to Equity ratio of 0.59. This is in the lower half of the industry: HPK underperforms 60.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 6.55
Altman-Z 1.88
ROIC/WACC1.26
WACC10.27%
HPK Yearly LT Debt VS Equity VS FCFHPK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

2.3 Liquidity

HPK has a Current Ratio of 0.96. 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's Current ratio of 0.96 is on the low side compared to the rest of the industry. HPK is outperformed by 66.02% of its industry peers.
HPK has a Quick Ratio of 0.96. 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 (0.93) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.96
Quick Ratio 0.93
HPK Yearly Current Assets VS Current LiabilitesHPK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

More info and screens

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.66% over the past year.
Measured over the past years, HPK shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.59% on average per year.
HPK shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.28%.
HPK shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 256.15% yearly.
EPS 1Y (TTM)9.66%
EPS 3YN/A
EPS 5Y81.59%
EPS Q2Q%25%
Revenue 1Y (TTM)33.28%
Revenue growth 3Y256.15%
Revenue growth 5YN/A
Sales Q2Q%-21.42%

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 -10.70% yearly.
Based on estimates for the next years, HPK will show a decrease in Revenue. The Revenue will decrease by -2.16% on average per year.
EPS Next Y-50.33%
EPS Next 2Y-21.54%
EPS Next 3Y-10.7%
EPS Next 5YN/A
Revenue Next Year-5.21%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.16%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HPK Yearly Revenue VS EstimatesHPK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M 1B
HPK Yearly EPS VS EstimatesHPK Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 8.57, the valuation of HPK can be described as very reasonable.
Based on the Price/Earnings ratio, HPK is valued a bit cheaper than 72.33% 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 28.46.
A Price/Forward Earnings ratio of 14.01 indicates a correct valuation of HPK.
HPK's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of HPK to the average of the S&P500 Index (92.87), we can say HPK is valued rather cheaply.
Industry RankSector Rank
PE 8.57
Fwd PE 14.01
HPK Price Earnings VS Forward Price EarningsHPK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

91.75% of the companies in the same industry are more expensive than HPK, based on the Enterprise Value to EBITDA ratio.
65.53% of the companies in the same industry are more expensive than HPK, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.53
EV/EBITDA 2.65
HPK Per share dataHPK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

HPK's earnings are expected to decrease with -10.70% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-21.54%
EPS Next 3Y-10.7%

More info and screens

2

5. Dividend

5.1 Amount

HPK has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.56, HPK is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, HPK's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

HPK has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
HPK Yearly Dividends per shareHPK Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.05 0.1 0.15

5.3 Sustainability

HPK pays out 11.94% of its income as dividend. This is a sustainable payout ratio.
DP11.94%
EPS Next 2Y-21.54%
EPS Next 3Y-10.7%
HPK Yearly Income VS Free CF VS DividendHPK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M
HPK Dividend Payout.HPK Dividend Payout, showing the Payout Ratio.HPK Dividend Payout.PayoutRetained Earnings

More info and screens

HIGHPEAK ENERGY INC

NASDAQ:HPK (1/31/2025, 8:00:01 PM)

After market: 13.77 +0.14 (+1.03%)

13.63

-0.35 (-2.5%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)N/A N/A
Inst Owners20.14%
Inst Owner Change0.4%
Ins Owners16.71%
Ins Owner Change1.4%
Market Cap1.73B
Analysts76.67
Price Target23.72 (74.03%)
Short Float %27.4%
Short Ratio17.64
Dividend
Industry RankSector Rank
Dividend Yield 1.14%
Yearly Dividend0.11
Dividend Growth(5Y)N/A
DP11.94%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.12%
Min EPS beat(2)-58.25%
Max EPS beat(2)54.02%
EPS beat(4)2
Avg EPS beat(4)-1.25%
Min EPS beat(4)-58.25%
Max EPS beat(4)54.02%
EPS beat(8)2
Avg EPS beat(8)-24.33%
EPS beat(12)2
Avg EPS beat(12)-30.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.94%
Max Revenue beat(2)0.48%
Revenue beat(4)2
Avg Revenue beat(4)-3.24%
Min Revenue beat(4)-12.18%
Max Revenue beat(4)0.68%
Revenue beat(8)4
Avg Revenue beat(8)-2.72%
Revenue beat(12)6
Avg Revenue beat(12)-3.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.2%
PT rev (3m)6.9%
EPS NQ rev (1m)6.15%
EPS NQ rev (3m)-73.76%
EPS NY rev (1m)0.91%
EPS NY rev (3m)20.28%
Revenue NQ rev (1m)-2.07%
Revenue NQ rev (3m)-9.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 8.57
Fwd PE 14.01
P/S 1.21
P/FCF 10.53
P/OCF 2.2
P/B 1.07
P/tB 1.07
EV/EBITDA 2.65
EPS(TTM)1.59
EY11.67%
EPS(NY)0.97
Fwd EY7.14%
FCF(TTM)1.29
FCFY9.5%
OCF(TTM)6.2
OCFY45.51%
SpS11.24
BVpS12.68
TBVpS12.68
PEG (NY)N/A
PEG (5Y)0.11
Profitability
Industry RankSector Rank
ROA 5.53%
ROE 10.54%
ROCE 17.03%
ROIC 12.98%
ROICexc 13.64%
ROICexgc 13.64%
OM 33.52%
PM (TTM) 11.88%
GM 88.31%
FCFM 11.52%
ROA(3y)7.49%
ROA(5y)0.25%
ROE(3y)13.61%
ROE(5y)3.39%
ROIC(3y)12.9%
ROIC(5y)N/A
ROICexc(3y)13.46%
ROICexc(5y)N/A
ROICexgc(3y)13.46%
ROICexgc(5y)N/A
ROCE(3y)16.92%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.73%
GM growth 5YN/A
F-Score7
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.59
Debt/FCF 6.55
Debt/EBITDA 0.95
Cap/Depr 117.74%
Cap/Sales 43.67%
Interest Coverage 3.05
Cash Conversion 78.16%
Profit Quality 96.92%
Current Ratio 0.96
Quick Ratio 0.93
Altman-Z 1.88
F-Score7
WACC10.27%
ROIC/WACC1.26
Cap/Depr(3y)397.27%
Cap/Depr(5y)662.57%
Cap/Sales(3y)112.46%
Cap/Sales(5y)311.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.66%
EPS 3YN/A
EPS 5Y81.59%
EPS Q2Q%25%
EPS Next Y-50.33%
EPS Next 2Y-21.54%
EPS Next 3Y-10.7%
EPS Next 5YN/A
Revenue 1Y (TTM)33.28%
Revenue growth 3Y256.15%
Revenue growth 5YN/A
Sales Q2Q%-21.42%
Revenue Next Year-5.21%
Revenue Next 2Y-5.4%
Revenue Next 3Y-2.16%
Revenue Next 5YN/A
EBIT growth 1Y4.94%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year81.99%
EBIT Next 3Y22.02%
EBIT Next 5YN/A
FCF growth 1Y136.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y116.95%
OCF growth 3Y734.84%
OCF growth 5YN/A