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 211 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of LPI while its profitability can be described as average. LPI scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
LPI had positive earnings in the past year.
In the past year LPI had a positive cash flow from operations.
1.2 Ratios
LPI's Return On Assets of 26.00% is amongst the best of the industry. LPI outperforms 87.96% of its industry peers.
Looking at the Return On Equity, with a value of 72.91%, LPI belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
LPI's Return On Invested Capital of 39.96% is amongst the best of 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 21.53%.
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
With a decent Profit Margin value of 35.99%, LPI is doing good in the industry, outperforming 78.24% of the companies in the same industry.
LPI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 56.87%, LPI belongs to the top of the industry, outperforming 81.02% of the companies in the same industry.
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.
LPI has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, LPI has an improved debt to assets ratio.
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 comparable to the rest of the industry.
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.
A Debt/Equity ratio of 1.18 is on the high side and indicates that LPI has dependencies on debt financing.
LPI's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. LPI is outperformed by 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
LPI has a Current 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 has a Current ratio of 0.47. This is amonst the worse of the industry: LPI underperforms 85.19% of its industry peers.
A Quick Ratio of 0.47 indicates that LPI may have some problems paying its short term obligations.
LPI has a Quick ratio of 0.47. This is amonst the worse of the industry: LPI underperforms 83.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 152.65% over the past year.
LPI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.47% yearly.
LPI shows a strong growth in Revenue. In the last year, the Revenue has grown by 82.29%.
Measured over the past years, LPI shows a quite strong growth in Revenue. The Revenue has been growing by 18.47% on average per year.
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
LPI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.89% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.24, the valuation of LPI can be described as very cheap.
Based on the Price/Earnings ratio, LPI is valued cheaper than 97.69% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, LPI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.49, the valuation of LPI can be described as very cheap.
Based on the Price/Forward Earnings ratio, LPI is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
LPI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPI is valued cheaper than 98.61% of the companies in the same industry.
94.91% of the companies in the same industry are more expensive than LPI, based on the Price/Free Cash Flow ratio.
| 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
LPI does not give a dividend.
| 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 Change0.08%
Ins Owners380.65%
Ins Owner Change0%
Market Cap808.56M
Revenue(TTM)2.03B
Net Income(TTM)729.56M
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
Graham NumberN/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
ROICexgc growth 3Y26.49%
ROICexgc 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%