Imperial Petroleum Inc./Marshall Islands (NASDAQ: IMPP)

Sector: Energy Industry: Oil & Gas Midstream CIK: 0001876581
Market Cap 139.78 Mn
P/B 0.30
P/E 3.59
P/S 1.03
ROIC (Qtr) 6.91
Div Yield % 0.00
Rev 1y % (Qtr) 25.43
Total Debt (Qtr) 19,263.00
Debt/Equity (Qtr) 0.00

About

Imperial Petroleum Inc., or IMPP, operates in the energy sector, specifically focusing on the exploration, production, and transportation of oil and natural gas. While it may not be as large as industry giants like ExxonMobil, Chevron, and ConocoPhillips, Imperial Petroleum has been making strides to expand its operations and increase its market share. The company generates revenue through the sale of its primary products, which include crude oil and natural gas. These products are primarily sold to refiners, marketers, and other energy companies,...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 66.09M provides robust 3431.19x coverage of total debt 19263, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 99.32M provide 5156.09x coverage of short-term debt 19263, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 476.35M provides 24728.64x coverage of total debt 19263, indicating robust asset backing and low credit risk.
  • Operating cash flow of 66.09M provides exceptional 25.45x coverage of interest expenses 2.60M, showing strong debt service capability.
  • Operating cash flow of 66.09M provides strong 21.85x coverage of stock compensation 3.03M, indicating sustainable incentive practices.

Bear case

  • Operating cash flow of 66.09M barely covers its investment activities of (66.59M), with a coverage ratio of -0.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of 41.53M show weak coverage of depreciation charges of 22.83M, with a 1.82 ratio indicating high capital intensity and potential reinvestment needs.
  • R&D investment of 0 represents just 0x of SG&A expenses of 6.71M, indicating potential underinvestment in innovation relative to administrative overhead.
  • Other current assets of 1.90M provide weak coverage of payables of 12.95M, which is 0.15x, suggesting potential working capital stress in near term.
  • Other operating expenses of 21.87M consume 0.33x of operating cash flow 66.09M, indicating potential cost control issues affecting cash generation.

Peer comparison

Companies in the Oil & Gas Midstream
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ENB Enbridge Inc 100.05 Bn 24.60 2.15 75.15 Bn
2 WMB Williams Companies, Inc. 73.60 Bn 31.09 6.40 27.99 Bn
3 EPD Enterprise Products Partners L.P. 69.94 Bn 12.09 1.32 33.58 Bn
4 KMI Kinder Morgan, Inc. 60.62 Bn 22.23 3.69 32.58 Bn
5 ET Energy Transfer LP 58.05 Bn 13.46 0.73 63.97 Bn
6 TRP Tc Energy Corp 55.97 Bn 22.78 5.27 44.47 Bn
7 MPLX Mplx Lp 54.03 Bn 11.23 4.22 25.92 Bn
8 OKE Oneok Inc /New/ 44.55 Bn 13.34 1.41 33.73 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.15 3.39
EV to Cash from Ops. EV/CFO -1.09 7.77
EV to Debt EV to Debt -3,756.71 -68.56
EV to EBIT EV/EBIT -1.74 12.77
EV to EBITDA EV/EBITDA -1.34 7.47
EV to Free Cash Flow [EV/FCF] EV/FCF -1.13 13.20
EV to Market Cap EV to Market Cap -0.52 2.49
EV to Revenue EV/Rev -0.53 4.48
Price to Book Value [P/B] P/B 0.30 94.01
Price to Earnings [P/E] P/E 3.59 12.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.60
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 72.05
Dividend per Basic Share Div per Share (Qtr) 0.00 1.46
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 32.66
Interest Coverage Int. cover (Qtr) 15.99 5.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 94.73 -17.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -50.13 16,113.89
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -21.40 -5.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -7.00 -4.54
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.40 -11.94
EBT Growth (1y) % EBT 1y % (Qtr) -26.13 -230.00
EPS Growth (1y) % EPS 1y % (Qtr) -6.25 -44.55
FCF Growth (1y) % FCF 1y % (Qtr) 58.73 -0.80
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.15 -1.23
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.29 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.21
Cash Ratio Cash Ratio (Qtr) 5.72 0.81
Current Ratio Curr Ratio (Qtr) 6.94 1.65
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 1.11
Interest Cover Ratio Int Coverage (Qtr) 15.99 5.11
Times Interest Earned Times Interest Earned (Qtr) 15.99 5.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 47.30 35.86
EBIT Margin % EBIT Margin % (Qtr) 30.52 27.76
EBT Margin % EBT Margin % (Qtr) 28.61 17.28
Gross Margin % Gross Margin % (Qtr) 44.00 48.56
Net Profit Margin % Net Margin % (Qtr) 28.60 15.36