LAREDO PETROLEUM INC (LPI) Stock Fundamental Analysis
NYSE:LPI - New York Stock Exchange, Inc. - US5168062058 - Common Stock - Currency: USD
Overall LPI gets a fundamental rating of 5 out of 10. We evaluated LPI against 212 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
In the past year LPI was profitable.
In the past year LPI had a positive cash flow from operations.
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.
With an excellent Return On Equity value of 72.91%, LPI belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
LPI has a better Return On Invested Capital (39.96%) 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 25.77%.
The last Return On Invested Capital (39.96%) for LPI is above the 3 year average (12.39%), which is a sign of increasing profitability.
| 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.
With an excellent Operating Margin value of 56.87%, LPI belongs to the best 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
LPI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Looking at the Altman-Z score, with a value of 1.35, LPI is in line with its industry, outperforming 47.22% of the companies in the same 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.
With a Debt to FCF ratio value of 3.42, LPI perfoms like the industry average, 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.
The Debt to Equity ratio of LPI (1.18) is worse than 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.
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.
A Quick Ratio of 0.47 indicates that LPI may have some problems paying its short term obligations.
LPI has a worse Quick ratio (0.47) 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.
The Earnings Per Share has been decreasing by -2.47% on average over the past years.
LPI shows a strong growth in Revenue. In the last year, the Revenue has grown by 82.29%.
LPI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.47% yearly.
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.
LPI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
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 cheaper than 97.69% of the companies in the same industry.
LPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.78.
LPI is valuated cheaply with a Price/Forward Earnings ratio of 1.49.
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.
LPI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
| 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 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
The 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 Change-0.02%
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%