GeoPark Limited (NYSE:GPRK) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GPRK, it is a company with a buoyant future outlook, which has not yet been factored into the price. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on GeoPark here.
High growth potential and good value
One reason why investors are attracted to GPRK is its earnings growth potential in the near future of 25% underlying the notable 43% return on equity over the next few years leading up to 2022. GPRK is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of GPRK's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the market, GPRK is also trading below other listed companies on the US stock exchange, relative to earnings generated. This further reaffirms that GPRK is potentially undervalued.
For GeoPark, there are three pertinent aspects you should further research:
- Historical Performance: What has GPRK's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GPRK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.