Laredo Story

LPI -- USA Stock

USD 24.35 1.88 7.17%

Macroaxis Story

As many millenniums are trying to avoid energy space, it makes sense to concentrate on Laredo Petroleum a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the entity operations in 2020 sustainable? Here we are going to cover the stock perspective on valuation to give you a better outlook on taking a position in this stock.

Published over a month ago

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Will Laredo Petroleum (NYSE:LPI) price increase in January 2021?

Laredo Petroleum has 1.24 B in debt with debt to equity (D/E) ratio of 8.78, demonstrating that Laredo Petroleum may be unable to create cash to meet all of its financial commitments. Our investment recommendation tool can cross-verify current analyst consensus on Laredo Petroleum and to analyze the entity potential to grow in the current economic cycle.

We determine the current worth of Laredo Petroleum using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Laredo Petroleum based exclusively on its fundamental and basic technical indicators. By analyzing Laredo Petroleum's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Laredo Petroleum's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Laredo Petroleum. We calculate exposure to Laredo Petroleum's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Laredo Petroleum's related companies.

Laredo Petroleum Investment Alerts

Laredo investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Laredo Petroleum performance across your portfolios.Please check all investment alerts for Laredo

Laredo Petroleum Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Laredo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Laredo Petroleum competition to find correlations between indicators driving the intrinsic value of Laredo.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Laredo Petroleum, but it might be worth checking our own buy vs. sell analysis

Laredo Petroleum exotic insider transaction detected

Legal trades by Laredo Petroleum insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Laredo insider trading alert for general transaction of common stock par value $0.01 per share (''common stock'') by James Levy, the corporate stakeholder, on 1st of December 2020. This event was filed by Laredo Petroleum Inc with SEC on 2020-12-01. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is Laredo Petroleum valued objectively by the market?

The entity reported the last year's revenue of 707.25 M. Reported Net Loss for the year was (949.96 M) with profit before taxes, overhead, and interest of 552.96 M.

	2017	2018	2019	2020 (projected)
Interest Expense	89.38 M	57.9 M	61.55 M	73.92 M
Gross Profit	509.3 M	661.78 M	553.26 M	535.41 M

Interest Expense Gross Profit

Margins Breakdown

Laredo profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Laredo Petroleum itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Laredo Petroleum profit margins.

	Operating Margin	(50.08)
	EBITDA Margin	(0.004105)
	Gross Margin	0.64
	Profit Margin	(0.44)

Laredo Petroleum Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. Also, Laredo Petroleum Revenue Per Employee is increasing over the last 8 years. The previous year's value of Laredo Petroleum Revenue Per Employee was 2,345,981.

Over 3 percent rise for Laredo Petroleum. What does it mean for stockholders?

Current Information Ratio is up to -0.06. Price may drop again. Laredo Petroleum exhibits very low volatility with skewness of 1.3 and kurtosis of 6.03. However, we advise investors to further study Laredo Petroleum technical indicators to make sure all market info is available and is reliable.

The Current Takeaway on Laredo Petroleum Investment

While some companies under the oil & gas e&p industry are still a bit expensive, Laredo Petroleum may offer a potential longer-term growth to stockholders. In closing, as of the 5th of December 2020, we believe that Laredo Petroleum is currently fairly valued with close to average probability of financial unrest in the next two years. However, our ongoing 30 days buy-sell recommendation on the company is Strong Sell.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Laredo Petroleum. Please refer to our Terms of Use for any information regarding our disclosure principles.

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