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LAREDO PETROLEUM INC (LPI) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:LPI - US5168062058 - Common Stock

48.09 USD
+0.54 (+1.14%)
Last: 1/6/2023, 9:16:20 PM
48.13 USD
+0.04 (+0.08%)
After Hours: 1/6/2023, 9:16:20 PM
Fundamental Rating

5

Overall LPI gets a fundamental rating of 5 out of 10. We evaluated LPI against 207 industry peers in the Oil, Gas & Consumable Fuels industry. While LPI is still in line with the averages on profitability rating, there are concerns on its financial health. LPI is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year LPI was profitable.
  • LPI had a positive operating cash flow in the past year.
LPI Yearly Net Income VS EBIT VS OCF VS FCFLPI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 500M -500M

1.2 Ratios

  • LPI has a better Return On Assets (26.00%) than 87.96% of its industry peers.
  • LPI has a better Return On Equity (72.91%) than 92.13% of its industry peers.
  • LPI's Return On Invested Capital of 39.96% is amongst the best of the industry. LPI outperforms 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 21.94%.
  • The 3 year average ROIC (12.39%) for LPI is below the current ROIC(39.96%), indicating increased profibility in the last year.
Industry RankSector 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
LPI Yearly ROA, ROE, ROICLPI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 1K 2K 3K 4K

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.
  • 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.
  • LPI's Operating Margin has improved in the last couple of years.
Industry RankSector 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
LPI Yearly Profit, Operating, Gross MarginsLPI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 50 -50 -100

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
LPI Yearly Shares OutstandingLPI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 5M 10M 15M
LPI Yearly Total Debt VS Total AssetsLPI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of 1.35, we must say that LPI is in the distress zone and 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.
  • 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.
  • LPI has a Debt to FCF ratio (3.42) which is in line with its industry peers.
  • A Debt/Equity ratio of 1.18 is on the high side and indicates that LPI has dependencies on debt financing.
  • LPI has a worse Debt to Equity ratio (1.18) than 70.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 3.42
Altman-Z 1.35
ROIC/WACC4.29
WACC9.31%
LPI Yearly LT Debt VS Equity VS FCFLPI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B

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.
  • Looking at the Current ratio, with a value of 0.47, LPI is doing worse than 85.19% of the companies in the same industry.
  • 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 has a Quick ratio of 0.47. This is amonst the worse of the industry: LPI underperforms 83.80% of its industry peers.
Industry RankSector Rank
Current Ratio 0.47
Quick Ratio 0.47
LPI Yearly Current Assets VS Current LiabilitesLPI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M 500M

6

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.
  • Measured over the past years, LPI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.47% on average per year.
  • The Revenue has grown by 82.29% in the past year. This is a very strong growth!
  • 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

  • The Earnings Per Share is expected to grow by 40.89% on average over the next years. This is a very strong growth
  • 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.
LPI Yearly Revenue VS EstimatesLPI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
LPI Yearly EPS VS EstimatesLPI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

9

4. Valuation

4.1 Price/Earnings Ratio

  • LPI is valuated cheaply with a Price/Earnings ratio of 2.24.
  • Compared to the rest of the industry, the Price/Earnings ratio of LPI indicates a rather cheap valuation: LPI is cheaper than 97.69% of the companies listed in the same industry.
  • LPI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
  • The Price/Forward Earnings ratio is 1.49, which indicates a rather cheap valuation of LPI.
  • 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 (24.32), we can say LPI is valued rather cheaply.
Industry RankSector Rank
PE 2.24
Fwd PE 1.49
LPI Price Earnings VS Forward Price EarningsLPI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 98.61% of the companies in the same industry are more expensive than LPI, based on the Enterprise Value to EBITDA ratio.
  • 94.91% of the companies in the same industry are more expensive than LPI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 2.34
EV/EBITDA 1.33
LPI Per share dataLPI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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.
  • 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%

0

5. Dividend

5.1 Amount

  • No dividends for LPI!.
Industry RankSector Rank
Dividend Yield N/A

LAREDO PETROLEUM INC / LPI FAQ

Can you provide the ChartMill fundamental rating for LAREDO PETROLEUM INC?

ChartMill assigns a fundamental rating of 6 / 10 to LPI.


What is the valuation status of LAREDO PETROLEUM INC (LPI) stock?

ChartMill assigns a valuation rating of 10 / 10 to LAREDO PETROLEUM INC (LPI). This can be considered as Undervalued.


What is the profitability of LPI stock?

LAREDO PETROLEUM INC (LPI) has a profitability rating of 9 / 10.


What is the financial health of LAREDO PETROLEUM INC (LPI) stock?

The financial health rating of LAREDO PETROLEUM INC (LPI) is 2 / 10.


Can you provide the expected EPS growth for LPI stock?

The Earnings per Share (EPS) of LAREDO PETROLEUM INC (LPI) is expected to grow by 171.8% in the next year.