HPKHighPeak Energy, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.8×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HPK?
HighPeak Energy, Inc. earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.0 points below what the capital costs: growth destroys value
- Operating margin
- 15%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 3.77×
Cash conversion · 2.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.25%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | −143% |
| FY2021 | 46% |
| FY2022 | 56% |
| FY2023 | 38% |
| FY2024 | 30% |
| FY2025 | 17% |
Details›
- Operating margin12 months to Q2 2026
- 15%
- Net margin12 months to Q2 2026
- −9.9%
- Free cash flow margin
- 43%
- Revenue, trailing twelve months
- $894M
- Free cash flow, trailing twelve months
- $388M
- Net income, trailing twelve months
- −$89M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.