LAREDO PETROLEUM INC (LPI) Stock Fundamental Analysis
USA - NYSE:LPI - US5168062058 - Common Stock
48.09 USD
+0.54 (+1.14%)
48.13 USD
+0.04 (+0.08%)
Overall LPI gets a fundamental rating of 5 out of 10. We evaluated LPI against 210 industry peers in the Oil, Gas & Consumable Fuels industry. LPI has a medium profitability rating, but doesn't score so well on its financial health evaluation. LPI may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
LPI had positive earnings in the past year.
LPI had a positive operating cash flow in the past year.
1.2 Ratios
With an excellent Return On Assets value of 26.00%, LPI belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
LPI has a better Return On Equity (72.91%) than 92.13% of its industry peers.
LPI has a Return On Invested Capital of 39.96%. This is amongst the best in the industry. LPI outperforms 92.13% of its industry peers.
LPI had an Average Return On Invested Capital over the past 3 years of 12.39%. This is significantly below the industry average of 21.66%.
The 3 year average ROIC (12.39%) for LPI is below the current ROIC(39.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26% | ||
| ROE | 72.91% | ||
| ROIC | 39.96% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.39%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of LPI (35.99%) is better than 78.24% of its industry peers.
In the last couple of years the Profit Margin of LPI has declined.
LPI's Operating Margin of 56.87% is amongst the best of the industry. LPI outperforms 81.02% of its industry peers.
In the last couple of years the Operating Margin of LPI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.87% | ||
| PM (TTM) | 35.99% | ||
| GM | N/A |
OM growth 3Y13.26%
OM growth 5Y29.85%
PM growth 3Y-29.24%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so LPI is creating value.
The number of shares outstanding for LPI has been increased compared to 1 year ago.
The debt/assets ratio for LPI has been reduced compared to a year ago.
2.2 Solvency
LPI has an Altman-Z score of 1.35. This is a bad value and indicates that LPI is not financially healthy and even has some risk of bankruptcy.
LPI has a Altman-Z score (1.35) which is in line with its industry peers.
The Debt to FCF ratio of LPI is 3.42, which is a good value as it means it would take LPI, 3.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.42, LPI is in line with its industry, outperforming 56.94% of the companies in the same industry.
LPI has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
LPI has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: LPI underperforms 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.42 | ||
| Altman-Z | 1.35 |
ROIC/WACC4.29
WACC9.31%
2.3 Liquidity
A Current Ratio of 0.47 indicates that LPI may have some problems paying its short term obligations.
With a Current ratio value of 0.47, LPI is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
LPI has a Quick Ratio of 0.47. This is a bad value and indicates that LPI is not financially healthy enough and could expect problems in meeting its short term obligations.
LPI's Quick ratio of 0.47 is on the low side compared to the rest of the industry. LPI is outperformed by 83.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
LPI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 152.65%, which is quite impressive.
LPI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.47% yearly.
Looking at the last year, LPI shows a very strong growth in Revenue. The Revenue has grown by 82.29%.
The Revenue has been growing by 18.47% on average over the past years. This is quite good.
EPS 1Y (TTM)152.65%
EPS 3Y-22.24%
EPS 5Y-2.47%
EPS Q2Q%188.04%
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y18.47%
Sales Q2Q%22.38%
3.2 Future
The Earnings Per Share is expected to grow by 40.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, LPI will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y171.8%
EPS Next 2Y93.44%
EPS Next 3Y56.92%
EPS Next 5Y40.89%
Revenue Next Year33.14%
Revenue Next 2Y9.46%
Revenue Next 3Y7.39%
Revenue Next 5Y2.84%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
LPI is valuated cheaply with a Price/Earnings ratio of 2.24.
Based on the Price/Earnings ratio, LPI is valued cheaply inside the industry as 97.69% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.41, LPI is valued rather cheaply.
LPI is valuated cheaply with a Price/Forward Earnings ratio of 1.49.
Based on the Price/Forward Earnings ratio, LPI is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LPI to the average of the S&P500 Index (22.88), we can say LPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
LPI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LPI is cheaper than 98.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LPI is valued cheaper than 94.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.34 | ||
| EV/EBITDA | 1.33 |
4.3 Compensation for Growth
LPI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LPI's earnings are expected to grow with 56.92% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y93.44%
EPS Next 3Y56.92%
5. Dividend
5.1 Amount
No dividends for LPI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.09
+0.54 (+1.14%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners165.19%
Inst Owner Change-3.62%
Ins Owners380.65%
Ins Owner Change0%
Market Cap808.56M
Analysts73.33
Price Target87.98 (82.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-8%
Min EPS beat(2)-15.66%
Max EPS beat(2)-0.34%
EPS beat(4)1
Avg EPS beat(4)-7.56%
Min EPS beat(4)-15.66%
Max EPS beat(4)0.49%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)20.98%
Min Revenue beat(2)19.59%
Max Revenue beat(2)22.36%
Revenue beat(4)4
Avg Revenue beat(4)28.74%
Min Revenue beat(4)19.59%
Max Revenue beat(4)43.7%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.68%
PT rev (3m)N/A
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-1.63%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 | ||
| P/S | 0.4 | ||
| P/FCF | 2.34 | ||
| P/OCF | 0.87 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 1.33 |
EPS(TTM)21.45
EY44.6%
EPS(NY)32.37
Fwd EY67.3%
FCF(TTM)20.53
FCFY42.69%
OCF(TTM)55.33
OCFY115.05%
SpS120.55
BVpS59.52
TBVpS59.52
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26% | ||
| ROE | 72.91% | ||
| ROCE | N/A | ||
| ROIC | 39.96% | ||
| ROICexc | 40.86% | ||
| ROICexgc | 40.86% | ||
| OM | 56.87% | ||
| PM (TTM) | 35.99% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.39%
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y26.49%
ROICexcg growth 5Y46.87%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y13.26%
OM growth 5Y29.85%
PM growth 3Y-29.24%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 3.42 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 194.29% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 47.31% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.35 |
F-Score9
WACC9.31%
ROIC/WACC4.29
Cap/Depr(3y)204.47%
Cap/Depr(5y)260.57%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)152.65%
EPS 3Y-22.24%
EPS 5Y-2.47%
EPS Q2Q%188.04%
EPS Next Y171.8%
EPS Next 2Y93.44%
EPS Next 3Y56.92%
EPS Next 5Y40.89%
Revenue 1Y (TTM)82.29%
Revenue growth 3Y8.03%
Revenue growth 5Y18.47%
Sales Q2Q%22.38%
Revenue Next Year33.14%
Revenue Next 2Y9.46%
Revenue Next 3Y7.39%
Revenue Next 5Y2.84%
EBIT growth 1Y170.17%
EBIT growth 3Y22.35%
EBIT growth 5Y53.83%
EBIT Next Year229.22%
EBIT Next 3Y56.48%
EBIT Next 5Y32.04%
FCF growth 1Y280.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y143.65%
OCF growth 3Y-2.62%
OCF growth 5Y6.87%