GeoPark Limited Fundamental Analysis (NYSE: GPRK)
GeoPark Limited (NYSE: GPRK) shows moderate financial fundamentals with a PE ratio of 6.35, profit margin of 14.80%, and ROE of 29.19%. The company generates $0.5B in annual revenue with weak year-over-year growth of -25.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPRK's fundamental strength across five key dimensions:
Efficiency Score
WeakGPRK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGPRK trades at attractive valuation levels.
Growth Score
WeakGPRK faces weak or negative growth trends.
Financial Health Score
ModerateGPRK shows balanced financial health with some risks.
Profitability Score
ModerateGPRK maintains healthy but balanced margins.
Key Financial Metrics
Is GPRK Expensive or Cheap?
P/E Ratio
GPRK trades at 6.35 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GPRK's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values GeoPark Limited at 1.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.30 times EBITDA. This is generally considered low.
How Well Does GPRK Make Money?
Net Profit Margin
For every $100 in sales, GeoPark Limited keeps $14.80 as profit after all expenses.
Operating Margin
Core operations generate 37.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.19 in profit for every $100 of shareholder equity.
ROA
GeoPark Limited generates $6.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GeoPark Limited generates strong operating cash flow of $209.65M, reflecting robust business health.
Free Cash Flow
GeoPark Limited generates strong free cash flow of $59.48M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.92 in free cash annually.
FCF Yield
GPRK converts 9.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How GPRK Stacks Against Its Sector Peers
| Metric | GPRK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.35 | 21.78 | Better (Cheaper) |
| ROE | 29.19% | 1231.00% | Weak |
| Net Margin | 14.80% | 1251.00% | Weak |
| Debt/Equity | 1.74 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 1.17 | 5.46 | Neutral |
| ROA | 6.29% | 4417.00% | Weak |
GPRK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GeoPark Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.30%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
125.10%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-89.74%
Industry Style: Cyclical, Value, Commodity
Declining