HighPeak Energy, Inc. (HPK) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA below its 5-year median

HighPeak Energy's EV/EBITDA of 3.2 is below its 5-year median of 3.4.

P/B below the industry

HighPeak Energy's price-to-book of 0.62 is below the Oil and Gas Field Services median of 1.29.

Trading below fair value

The share price of $7.36 is below our fair value estimate of $17.37.

Margin of safety over 20%

The price is 57.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -58.3% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -7.1% over the last twelve months; the Oil and Gas Field Services median is 4.6%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -8.1% over the last twelve months and averaged 12.3% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.2%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

HighPeak Energy's return on equity of -8.1% is below the Oil and Gas Field Services median of 1.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -13.8% over the last twelve months, against a 5-year average of 17.3%.

Net margin below the industry

HighPeak Energy's net margin of -13.8% is below the Oil and Gas Field Services median of 0.9%.

High debt

Debt is 77.5% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 77.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 33.0% of total debt.

Interest not well covered

Operating income covers interest expense 1.2 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.73 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

HighPeak Energy paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; HighPeak Energy yields 0.5%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 5 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.