GEOPARK LTD (GPRK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GPRK - BMG383271050 - Common Stock
8.43 USD
+0.05 (+0.6%)
8.43 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GPRK. GPRK was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making GPRK a very profitable company, without any liquidiy or solvency issues. GPRK is cheap, but on the other hand it scores bad on growth. These ratings would make GPRK suitable for value investing!
1. Profitability
1.1 Basic Checks
- GPRK had positive earnings in the past year.
- GPRK had a positive operating cash flow in the past year.
- GPRK had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years GPRK had a positive operating cash flow.
1.2 Ratios
- GPRK has a Return On Assets of 3.37%. This is comparable to the rest of the industry: GPRK outperforms 52.66% of its industry peers.
- GPRK has a better Return On Equity (16.26%) than 80.68% of its industry peers.
- The Return On Invested Capital of GPRK (14.81%) is better than 94.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GPRK is significantly above the industry average of 21.94%.
- The last Return On Invested Capital (14.81%) for GPRK is well below the 3 year average (35.84%), which needs to be investigated, but indicates that GPRK had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 16.26% | ||
| ROIC | 14.81% |
ROA(3y)14%
ROA(5y)4.91%
ROE(3y)101.54%
ROE(5y)N/A
ROIC(3y)35.84%
ROIC(5y)28.65%
1.3 Margins
- GPRK's Profit Margin of 6.45% is in line compared to the rest of the industry. GPRK outperforms 49.28% of its industry peers.
- GPRK's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 31.47%, GPRK is doing good in the industry, outperforming 78.74% of the companies in the same industry.
- In the last couple of years the Operating Margin of GPRK has grown nicely.
- GPRK's Gross Margin of 71.28% is amongst the best of the industry. GPRK outperforms 82.13% of its industry peers.
- GPRK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.47% | ||
| PM (TTM) | 6.45% | ||
| GM | 71.28% |
OM growth 3Y-1.62%
OM growth 5Y1.57%
PM growth 3Y18.01%
PM growth 5Y9.68%
GM growth 3Y2.36%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
- GPRK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- Compared to 1 year ago, GPRK has less shares outstanding
- Compared to 5 years ago, GPRK has less shares outstanding
- GPRK has a better debt/assets ratio than last year.
2.2 Solvency
- GPRK has an Altman-Z score of 1.83. This is not the best score and indicates that GPRK is in the grey zone with still only limited risk for bankruptcy at the moment.
- GPRK has a Altman-Z score of 1.83. This is in the better half of the industry: GPRK outperforms 61.84% of its industry peers.
- GPRK has a debt to FCF ratio of 11.96. This is a negative value and a sign of low solvency as GPRK would need 11.96 years to pay back of all of its debts.
- GPRK has a Debt to FCF ratio of 11.96. This is comparable to the rest of the industry: GPRK outperforms 51.69% of its industry peers.
- A Debt/Equity ratio of 2.79 is on the high side and indicates that GPRK has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.79, GPRK is doing worse than 85.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.79 | ||
| Debt/FCF | 11.96 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.86
WACC7.97%
2.3 Liquidity
- A Current Ratio of 2.63 indicates that GPRK has no problem at all paying its short term obligations.
- The Current ratio of GPRK (2.63) is better than 81.64% of its industry peers.
- GPRK has a Quick Ratio of 2.57. This indicates that GPRK is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.57, GPRK belongs to the top of the industry, outperforming 83.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
- The earnings per share for GPRK have decreased strongly by -36.36% in the last year.
- Measured over the past years, GPRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.54% on average per year.
- GPRK shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -26.63%.
- GPRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.00% yearly.
EPS 1Y (TTM)-36.36%
EPS 3Y17.7%
EPS 5Y14.54%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)-26.63%
Revenue growth 3Y-1.36%
Revenue growth 5Y1%
Sales Q2Q%-21.57%
3.2 Future
- GPRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.93% yearly.
- The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y-66.75%
EPS Next 2Y-22.11%
EPS Next 3Y-8.19%
EPS Next 5Y3.93%
Revenue Next Year-25.27%
Revenue Next 2Y-16.16%
Revenue Next 3Y-5.11%
Revenue Next 5Y6.29%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 6.69, the valuation of GPRK can be described as very cheap.
- Based on the Price/Earnings ratio, GPRK is valued cheaper than 90.34% of the companies in the same industry.
- GPRK is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.68, the valuation of GPRK can be described as very cheap.
- GPRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. GPRK is cheaper than 91.79% of the companies in the same industry.
- GPRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.69 | ||
| Fwd PE | 7.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GPRK is valued cheaply inside the industry as 92.75% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GPRK is valued cheaper than 84.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 2.87 |
4.3 Compensation for Growth
- GPRK has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as GPRK's earnings are expected to decrease with -8.19% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-22.11%
EPS Next 3Y-8.19%
5. Dividend
5.1 Amount
- GPRK has a Yearly Dividend Yield of 1.54%.
- Compared to an average industry Dividend Yield of 3.73, GPRK has a dividend in line with its industry peers.
- GPRK's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
- On average, the dividend of GPRK grows each year by 69.74%, which is quite nice.
- GPRK has been paying a dividend for over 5 years, so it has already some track record.
- GPRK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)69.74%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 88.91% of the earnings are spent on dividend by GPRK. This is not a sustainable payout ratio.
- GPRK's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP88.91%
EPS Next 2Y-22.11%
EPS Next 3Y-8.19%
GEOPARK LTD / GPRK FAQ
What is the ChartMill fundamental rating of GEOPARK LTD (GPRK) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GPRK.
What is the valuation status of GEOPARK LTD (GPRK) stock?
ChartMill assigns a valuation rating of 8 / 10 to GEOPARK LTD (GPRK). This can be considered as Undervalued.
Can you provide the profitability details for GEOPARK LTD?
GEOPARK LTD (GPRK) has a profitability rating of 8 / 10.
What is the expected EPS growth for GEOPARK LTD (GPRK) stock?
The Earnings per Share (EPS) of GEOPARK LTD (GPRK) is expected to decline by -66.75% in the next year.
Can you provide the dividend sustainability for GPRK stock?
The dividend rating of GEOPARK LTD (GPRK) is 4 / 10 and the dividend payout ratio is 88.91%.