ASX:HPR

Stock Analysis Report

High Peak Royalties

Executive Summary

High Peak Royalties Limited, together with its subsidiaries, engages in the acquisition of royalty and exploration interests in oil and gas assets in Australia and the United States.


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has High Peak Royalties's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

HPR

-8.6%

AU Oil and Gas

-6.2%

AU Market


1 Year Return

47.6%

HPR

-17.3%

AU Oil and Gas

7.9%

AU Market

Return vs Industry: HPR exceeded the Australian Oil and Gas industry which returned -14.1% over the past year.

Return vs Market: HPR exceeded the Australian Market which returned 10.9% over the past year.


Shareholder returns

HPRIndustryMarket
7 Day0%-8.6%-6.2%
30 Day-5.1%-15.5%-5.9%
90 Dayn/a-14.5%-2.7%
1 Year47.6%47.6%-14.0%-17.3%12.6%7.9%
3 Year210.0%210.0%5.4%-6.5%31.3%13.8%
5 Year-22.5%-22.5%-5.6%-21.9%42.6%10.6%

Price Volatility Vs. Market

How volatile is High Peak Royalties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is High Peak Royalties undervalued compared to its fair value and its price relative to the market?

1.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate HPR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate HPR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HPR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: HPR is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HPR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HPR is overvalued based on its PB Ratio (1.5x) compared to the AU Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is High Peak Royalties forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.7%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as High Peak Royalties has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has High Peak Royalties performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HPR is currently unprofitable.

Growing Profit Margin: HPR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HPR is unprofitable, but has reduced losses over the past 5 years at a rate of 36.7% per year.

Accelerating Growth: Unable to compare HPR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HPR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-0.7%).


Return on Equity

High ROE: HPR has a negative Return on Equity (-6.29%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is High Peak Royalties's financial position?


Financial Position Analysis

Short Term Liabilities: HPR's short term assets (A$1.2M) exceed its short term liabilities (A$441.5K).

Long Term Liabilities: HPR's short term assets (A$1.2M) do not cover its long term liabilities (A$2.7M).


Debt to Equity History and Analysis

Debt Level: HPR's debt to equity ratio (24.8%) is considered satisfactory.

Reducing Debt: HPR's debt to equity ratio has increased from 2.1% to 24.8% over the past 5 years.


Balance Sheet

Inventory Level: HPR has a low level of unsold assets or inventory.

Debt Coverage by Assets: HPR's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HPR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: HPR has sufficient cash runway for 2.5 years if free cash flow continues to grow at historical rates of 31.2% each year.


Next Steps

Dividend

What is High Peak Royalties's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.7%industryaverage4.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate HPR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HPR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HPR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HPR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HPR's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average board tenure


CEO

High Peak Royalties has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Andrew Carroll
Non-Executive Chairman2.3yrsAU$126.58k4.61% A$809.5k
Geoffrey King
Non-Executive Director5.8yrsAU$51.26k0.96% A$168.0k
Anthony Wooles
Non-Executive Director5.8yrsAU$77.17kno data

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: HPR's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

High Peak Royalties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: High Peak Royalties Limited
  • Ticker: HPR
  • Exchange: ASX
  • Founded: 2006
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$17.573m
  • Shares outstanding: 188.96m
  • Website: https://www.highpeak.com.au

Location

  • High Peak Royalties Limited
  • 35 Lime Street
  • Suite 305
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HPRASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 2014
HPRCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 2014
HPRCHIA (Chi-X Australia)NPVAUAUDJun 2018

Biography

High Peak Royalties Limited, together with its subsidiaries, engages in the acquisition of royalty and exploration interests in oil and gas assets in Australia and the United States. It has royalties over 20 oil and gas projects. The company was incorporated in 2006 and is based in Sydney, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 10:37
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.