AMEX:GDP

Stock Analysis Report

Executive Summary

Goodrich Petroleum Corporation, an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas.

Rewards

Trading at 91.8% below its fair value

Revenue is forecast to grow 16.02% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -13.2% per year for the next 3 years

Interest payments are not well covered by earnings

High level of non-cash earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GDP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

GDP

1.9%

US Oil and Gas

0.7%

US Market


1 Year Return

-29.2%

GDP

-9.2%

US Oil and Gas

18.2%

US Market

Return vs Industry: GDP underperformed the US Oil and Gas industry which returned -9.2% over the past year.

Return vs Market: GDP underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

GDPIndustryMarket
7 Day-0.9%1.9%0.7%
30 Day-0.7%-2.7%1.5%
90 Day-12.7%-2.8%5.0%
1 Year-29.2%-29.2%-5.8%-9.2%20.8%18.2%
3 Year-18.9%-18.9%-13.7%-21.6%45.2%35.8%
5 Yearn/a-8.1%-21.6%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Goodrich Petroleum 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: GDP ($9.73) is trading below our estimate of fair value ($118.17)

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


Price To Earnings Ratio

PE vs Industry: GDP is good value based on its PE Ratio (5.3x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: GDP is good value based on its PE Ratio (5.3x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GDP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GDP is overvalued based on its PB Ratio (1.4x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Goodrich Petroleum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDP's earnings are forecast to decline over the next 3 years (-13.2% per year).

Earnings vs Market: GDP's earnings are forecast to decline over the next 3 years (-13.2% per year).

High Growth Earnings: GDP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GDP's revenue (16% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: GDP's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GDP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Goodrich Petroleum performed over the past 5 years?

61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDP has a high level of non-cash earnings.

Growing Profit Margin: GDP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GDP has become profitable over the past 5 years, growing earnings by 61.3% per year.

Accelerating Growth: GDP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GDP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15.6%).


Return on Equity

High ROE: Whilst GDP's Return on Equity (26.27%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Goodrich Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: GDP's short term assets ($21.8M) do not cover its short term liabilities ($45.6M).

Long Term Liabilities: GDP's short term assets ($21.8M) do not cover its long term liabilities ($104.2M).


Debt to Equity History and Analysis

Debt Level: GDP's debt to equity ratio (116.5%) is considered high.

Reducing Debt: GDP's debt to equity ratio has reduced from 287.2% to 116.5% over the past 5 years.

Debt Coverage: GDP's debt is well covered by operating cash flow (70.1%).

Interest Coverage: GDP's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Inventory Level: GDP has a high level of physical assets or inventory.

Debt Coverage by Assets: GDP's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Goodrich Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GDP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GDP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GDP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GDP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Goodrich Petroleum's salary, the management and board of directors tenure and is there insider trading?

11.9yrs

Average management tenure


CEO

Gil Goodrich (61yo)

24.3yrs

Tenure

US$965,240

Compensation

Mr. Walter G. Goodrich, also known as Gil, serves as Chief Executive Officer of Goodrich Petroleum Company, LLC since 1995. Mr. Goodrich has been the Chief Executive Officer of Goodrich Petroleum Corporati ...


CEO Compensation Analysis

Compensation vs Market: Gil's total compensation ($USD965.24K) is above average for companies of similar size in the US market ($USD502.49K).

Compensation vs Earnings: Gil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

11.9yrs

Average Tenure

61yo

Average Age

Experienced Management: GDP's management team is seasoned and experienced (11.9 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: GDP's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 7.3%.


Management Team

  • Gil Goodrich (61yo)

    Chairman & CEO

    • Tenure: 24.3yrs
    • Compensation: US$965.24k
  • Robert Turnham (61yo)

    President

    • Tenure: 13yrs
    • Compensation: US$965.24k
  • Mike Killelea (56yo)

    Executive VP

    • Tenure: 10.9yrs
    • Compensation: US$1.47m
  • Mark Ferchau (65yo)

    Executive Vice President

    • Tenure: 16.8yrs
    • Compensation: US$647.78k
  • Timothy Lane

    Senior Vice President of Land & Planning Administration

    • Tenure: 0yrs
  • Tom Nemec

    Senior Vice President of Operations

    • Tenure: 11.9yrs
  • Leslee Ranly

    Vice President of Human Resources & Administration

    • Tenure: 13.3yrs
  • Clarke Denney

    Senior Vice President of Drilling

    • Tenure: 7.9yrs
  • Robert Barker (68yo)

    Senior VP

    • Tenure: 2.8yrs
    • Compensation: US$508.42k
  • Michael Huggins

    Vice President of Marketing & Assistant General Counsel

    • Tenure: 1.8yrs

Board Members

  • Tim Leuliette (69yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$247.50k
  • Gil Goodrich (61yo)

    Chairman & CEO

    • Tenure: 24.3yrs
    • Compensation: US$965.24k
  • Robert Turnham (61yo)

    President

    • Tenure: 13yrs
    • Compensation: US$965.24k
  • Jeff Serota (53yo)

    Independent Director

    • Tenure: 0.3yrs
  • Tom Souers (65yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$227.25k
  • Kenneth Leight (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$245.25k
  • Ronney Coleman (65yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$223.75k
  • Edward Sondey (54yo)

    Independent Director

    • Tenure: 0.3yrs

Company Information

Goodrich Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goodrich Petroleum Corporation
  • Ticker: GDP
  • Exchange: AMEX
  • Founded: 1995
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$119.803m
  • Shares outstanding: 12.31m
  • Website: https://www.goodrichpetroleum.com

Number of Employees


Location

  • Goodrich Petroleum Corporation
  • 801 Louisiana Street
  • Suite 700
  • Houston
  • Texas
  • 77002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDPAMEX (NYSE MKT LLC)YesNew Common StockUSUSDDec 2016

Biography

Goodrich Petroleum Corporation, an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas. It primarily holds interests in the Haynesville S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:43
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.