Geopark Ltd Common Shares (GPRK)

FairStock Score: 67/100 — STEADY

Key Financials

Strengths

• High return on equity of 22.1% demonstrating efficient capital deployment

Concerns

• High leverage at 2.36x debt-to-equity increases financial risk and interest expense burden
• Revenue declining at 18.9% year-over-year signals potential demand weakness or market share loss
• Altman Z-Score of 0.9 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Geopark Ltd Common Shares is a micro-cap energy company valued at $588 million. The business generates $493 million in annual revenue with a 6.3% net margin. From a quality standpoint, Geopark shows distressed Altman Z-Score of 0.9 warrants caution and strong 22% ROE. On valuation, the stock is deeply undervalued on a P/E basis at 9.6x, with a modest 10% margin of safety vs Graham Number. Growth dynamics show revenue growing at -18.9% and profit growth of 102.5%. The 1.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 67/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates Geopark's consistent 22% ROE at just 10x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 2.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer