GPRKGeoPark Limited
Is the business good?
More warning than reassurance: thin cash backing (0.2×) and returns that lean on debt.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 20% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GPRK?
GeoPark Limited earns 12% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.5 points above what the capital costs: growth creates value
- Operating margin
- 22%
Operating margin · Oil & Gas E&P median 25% · fiscal year to FY2025
- Cash conversion
- 0.17×
Cash conversion · 2.18× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −2.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −28% |
| FY2021 | 27% |
| FY2022 | 41% |
| FY2023 | 36% |
| FY2024 | 41% |
| FY2025 | 22% |
Details›
- Gross marginfiscal year to FY2025
- 94%
- Operating marginfiscal year to FY2025
- 22%
- Net marginfiscal year to FY2025
- 10%
- Free cash flow margin
- −17%
- Revenue, trailing twelve months
- $493M
- Free cash flow, trailing twelve months
- −$84M
- Net income, trailing twelve months
- $50M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 12%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.