LAREDO PETROLEUM INC (LPI) Stock Fundamental Analysis
NYSE:LPI - New York Stock Exchange, Inc. - US5168062058 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to LPI. LPI was compared to 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
In the past year LPI was profitable.
LPI had a positive operating cash flow in the past year.
1.2 Ratios
LPI has a Return On Assets of 26.00%. This is amongst the best in the industry. LPI outperforms 87.96% of its industry peers.
LPI has a better Return On Equity (72.91%) than 92.13% of its industry peers.
The Return On Invested Capital of LPI (39.96%) is better than 92.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPI is significantly below the industry average of 28.75%.
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.
LPI has more shares outstanding than it did 1 year ago.
LPI has a better debt/assets ratio than last year.
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 of 1.35. This is comparable to the rest of the industry: LPI outperforms 47.22% of its industry peers.
LPI has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as LPI would need 3.42 years to pay back of all of its debts.
LPI has a Debt to FCF ratio (3.42) which is in line with its industry peers.
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.
The Quick ratio of LPI (0.47) is worse than 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.
Looking at the last year, LPI shows a very strong growth in Revenue. 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.
The Revenue is expected to grow by 2.84% on average over the next years.
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.
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
A Price/Earnings ratio of 2.24 indicates a rather cheap valuation of LPI.
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 29.63, LPI is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.49, the valuation of LPI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPI indicates a rather cheap valuation: LPI is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of LPI to the average of the S&P500 Index (22.68), we can say LPI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.24 | ||
| Fwd PE | 1.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPI indicates a rather cheap valuation: LPI is cheaper than 98.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, LPI is valued cheaply inside the industry as 94.91% of the companies are valued more expensively.
| 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.
LPI's earnings are expected to grow with 56.92% in the coming years. This may justify a more expensive valuation.
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 Change-90.86%
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%