NYSE:GPRK

Stock Analysis Report

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Executive Summary

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, Peru, and Ecuador. More Details

Rewards

Trading at 54% below our estimate of its fair value

Earnings are forecast to grow 85.68% per year

Risk Analysis

No risks detected for GPRK from our risk checks.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has GeoPark's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GPRK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GPRK's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0.1%

GPRK

-3.2%

US Oil and Gas

0.7%

US Market


1 Year Return

-47.0%

GPRK

-32.7%

US Oil and Gas

22.2%

US Market

Return vs Industry: GPRK underperformed the US Oil and Gas industry which returned -33.8% over the past year.

Return vs Market: GPRK underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

GPRKIndustryMarket
7 Day0.1%-3.2%0.7%
30 Day45.1%25.0%11.8%
90 Day10.7%9.8%8.6%
1 Year-46.6%-47.0%-28.2%-32.7%25.0%22.2%
3 Year18.2%16.9%-34.1%-43.1%49.4%39.5%
5 Year263.0%258.9%-20.7%-36.4%100.2%78.1%

Long-Term Price Volatility Vs. Market

How volatile is GeoPark's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GeoPark undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPRK ($10.01) is trading below our estimate of fair value ($21.77)

Significantly Below Fair Value: GPRK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GPRK is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: GPRK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GPRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GPRK is overvalued based on its PB Ratio (151.7x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is GeoPark forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

85.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPRK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: GPRK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GPRK's is expected to become profitable in the next 3 years.

Revenue vs Market: GPRK's revenue (14.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: GPRK's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPRK's Return on Equity is forecast to be very high in 3 years time (127.5%).


Next Steps

Past Performance

How has GeoPark performed over the past 5 years?

44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPRK is currently unprofitable.

Growing Profit Margin: GPRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GPRK is unprofitable, but has reduced losses over the past 5 years at a rate of 44.7% per year.

Accelerating Growth: Unable to compare GPRK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GPRK is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-29.6%).


Return on Equity

High ROE: GPRK has a negative Return on Equity (-2848.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is GeoPark's financial position?


Financial Position Analysis

Short Term Liabilities: GPRK's short term assets ($274.9M) exceed its short term liabilities ($161.4M).

Long Term Liabilities: GPRK's short term assets ($274.9M) do not cover its long term liabilities ($886.7M).


Debt to Equity History and Analysis

Debt Level: GPRK's debt to equity ratio (19309.2%) is considered high.

Reducing Debt: GPRK's debt to equity ratio has increased from 92.7% to 19309.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GPRK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GPRK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.5% per year.


Next Steps

Dividend

What is GeoPark current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPRK's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: GPRK's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (4.14%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GPRK's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GPRK's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: GPRK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: GPRK's dividends in 3 years are forecast to be thoroughly covered by earnings (4.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.7yrs

Average management tenure


CEO

Jim Park (65 yo)

18.92yrs

Tenure

US$2,509,352

Compensation

Mr. James Franklin Park, also known as Jim, has been Chief Executive Officer and Director of GeoPark Limited since 2002. Mr. Park has been a Director at Amerisur Resources plc since January 16, 2020. He co...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD2.51M) is above average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: Jim's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gerald O'Shaughnessy
Co-Founder & Chairman18.92yrsUS$400.00k4.5%
$ 24.6m
James Park
Co-Founder18.92yrsUS$2.51m13.71%
$ 74.8m
Pedro Enrique Aylwin Chiorrini
Director of Legal & Governance and Director7.42yrsUS$14.63k0.57%
$ 3.1m
Andrés Ocampo
Chief Financial Officer7.08yrsno datano data
Augusto Zubillaga
Chief Operating Officer5.58yrsno datano data
Sabrina Garcia
Information Management Managerno datano datano data
Verónica Hayden
Corporate People Managerno datano datano data
Adriana La Rotta
Director of Connectionsno datano datano data
Martin Terrado
Director of Operationsno datano datano data

9.7yrs

Average Tenure

60yo

Average Age

Experienced Management: GPRK's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerald O'Shaughnessy
Co-Founder & Chairman18.92yrsUS$400.00k4.5%
$ 24.6m
James Park
Co-Founder18.92yrsUS$2.51m13.71%
$ 74.8m
Pedro Enrique Aylwin Chiorrini
Director of Legal & Governance and Director7.42yrsUS$14.63k0.57%
$ 3.1m
Adriana La Rotta
Director of Connectionsno datano datano data
Constantine G. Papadimitriou
Independent Non-Executive Director2.58yrsUS$88.75k0.049%
$ 269.9k
Carlos A. Gulisano
Non-Executive Director10.5yrsUS$108.75k0.36%
$ 2.0m
Somit Varma
Independent Director0.33yrno datano data
Robert Bedingfield
Independent Non-Executive Director5.75yrsUS$110.00k0.16%
$ 899.6k
Sylvia Gomez
Independent Director0.33yrno datano data

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: GPRK's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GeoPark Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GeoPark Limited
  • Ticker: GPRK
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$545.510m
  • Shares outstanding: 60.61m
  • Website: https://www.geo-park.com

Number of Employees


Location

  • GeoPark Limited
  • Nuestra SeNora de los Angeles 179
  • Las Condes
  • Santiago de Chile
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0MDPLSE (London Stock Exchange)YesCommon SharesGBUSDMay 2006
GPRKNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 2006
G6ODB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2006
GPRK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 1 COM USD0.001BRBRLMay 2019

Biography

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, Peru, and Ecuador. As of December 31, 2019, the company had working an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 23:05
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.