GFRGreenfire Resources Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (2.9×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GFR?
Greenfire Resources Ltd. earns 3.9% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 9.5%
Operating margin · Oil & Gas E&P median 25% · fiscal year to FY2025
- Cash conversion
- 2.87×
Cash conversion · 5.01× a year ago · operating cash flow covers the operating profit after tax
- Gross margin
- 107%
Gross margin
| Year | Operating margin |
|---|---|
| FY2023 | −18% |
| FY2024 | 4.6% |
| FY2025 | 9.5% |
Details›
- Gross marginfiscal year to FY2025
- 107%
- Operating marginfiscal year to FY2025
- 9.5%
- Net marginfiscal year to FY2025
- 8.1%
- Free cash flow margin
- 4.2%
- Revenue, trailing twelve months
- $584M
- Free cash flow, trailing twelve months
- $25M
- Net income, trailing twelve months
- $48M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.