GKP Share Price Fundamentals
Gulf Keystone Petroleum is among the main oil and gas production companies in Iraq & the UK. Apart from these two countries, GKP also supplies its products to other nations also. Talking about the location, it is performing its operations at the Shaikan field. GKP is a fast-growing company and it operates in a 283 square kilometers area.
Along with manufacturing oil and gas, GKP Limited also provides other services. Their service portfolio covers services like geology, engineering services, geophysical services, and more. Founded in the year 2001, GKP's headquarter is in Bermuda.
As Gulf Keystone Petroleum is a core company, investors have a positive perspective on it. If you are also planning to invest in GKP Limited, then we have done the research for you.
Gulf Keystone Petroleum - Fundamental Analysis
In our analysis of GKP, we will overview many factors that will influence shares. From valuation to shares, profitability, and dividend— we will check all about GKP.
As GKP is in the core business, it becomes vital for both beginners and experts to know the fundamentals. As of now, the shares of GKP are trading at 156.20 GBX & we can see the impact of lower demands.
All oil and gas companies including GKP are facing severe challenges amid COVID-19. But, as the economies are recovering, it's worth it to look at the fundamentals.
Share prices & volatility
If we look at the past performance of six months for Gulf Keystone Petroleum, it's doing good. But, on the other side, the performance is on the lower side from the past 5 years' perspective.
The share of GKP was trading at 1475 GBX and after that point, the shares had huge corrections. But, experts have good faith in this core company that the share will rally in the upcoming time. As of now, the shares of GKP are trading below 80% of their fair value.
Along with this, the earnings from GKP shares have a growth forecast of 84% per year. According to the London Stock Exchange analysis, GKP shares are less volatile. As the Gulf Petroleum company is stable than other companies, it's on a bullish path. The weekly volatility of Gulf Keystone Petroleum is around 7% which is much lower.
Valuation & future growth
When it comes to the valuation of Gulf Keystone Petroleum, it's undervalued by 80% and it's a massive chance. If you are looking for a long-term perspective, Gulf Keystone Petroleum is the best pick.
And, talking about the fair value of the GKP shares, GKP is trading below by almost 20%. But, the price to earnings ratio is unavailable for GKP as it's unprofitable.
Coming to the future growth of the company, the path looks clear. As the shares are trading undervalue, the earning scope is huge. Unlike many companies, GKP is due for a good rally in the upcoming time.
Gulf Keystone Petroleum is far away from its saturation point, as it's a benefit point for all. If you plan for portfolio diversification, GKP is the best fit. The forecasted yearly growth is around 80% which is massive.
Future growth forecast
As per the technical analysis and movements, the future forecasts look lucrative. As per experts, GKP company will become profitable in the next three years. Gulf Petroleum's growth rate is more than its saving rate which is 1%. The profitable trajectory of 3 years is above average than many companies.
Another prediction for GKP shares is that the company will get the benefit of its working domain. After the COVID-19 recovery, the demands for oil and gas will surge and GKP will thrive. As compared to other companies, the future growth of GKP is 20% higher than others.
The historical performance of Gulf Keystone Petroleum is around 57.8% (of five years). And, from the past year, the company is on the track of recovery and investors have high hopes for the bullish rally.
During the COVID-19, the past six months' performance was also on the growth trajectory. The shares are trading at a lower bound but we can see the signals of growth. The return on equity of GKP is currently negative as it's unprofitable. As of now, the return on equity is hovering around -2.96%.
The financial health of Gulf Keystone Petroleum looks promising due to their numbers. As of now, the short term liability of the company is around $72.2 million. This short term liability is lower than the short term asset of $191.7 million.
On the other side, if we look at the long-term perspective, it also looks appealing. At this moment, the company has a long-term liability of around $132.2 million.
And to cover this, the company's long-term assets have a valuation of $191.7 million. As the demand surges in the market, the company has enough assets to manage the demand with ease. As compared to other companies, this is a good asset & liability ratio.
Debt to Equity ratio
Despite the company being unprofitable in the market, the debt to equity ratio is decent. As of now the GKP's debt to equity ratio is hovering around 21.1% which is good in many ways.
Investors are considering this GKP stock because of the reducing debt to equity. The company's ratio has reduced from a whopping 178% to 21% over only five years. In such oil and gas companies, this ratio is a hope for better performance in the future. If you are looking for long-term investing, you can include this Iraq-based oil and gas company.
The cash run flow data is currently unavailable in the market. The forecast dividend has a projection of 0.46% as the company becomes profitable in the next 3 years. If you are looking to hold this company for at least 5 to 6 years, then it's a good pick for you.
Jon Harris (CEO) is as of now heading the company and under his guidance, things are looking better. The average management teams' experience is around 2.1 years. Many people call this experience average much lower.
But, Jon Harris' vision for the company will help in future growth in a much profitable way. He is having a vivid experience in the same niche and we can see the company moving on the right path.
Ian Weatherdon is the CFO and the director of the company and he also brings in good exposure to the company and Stuart Catterall is the chief operating officer of Gulf Keystone Petroleum. Stuart also brings in good experience to the company. The management team is quite capable of bringing positive results in a short period of time.
Summary - GKP Share
GKP shares are on the right track of growth & in the upcoming three years, this company will become profitable. If you are searching for a long-term investment core company, this could be one. As economies will restore in the upcoming time, the demand for oil and gas will surge again and it will profit GKP.
As the volatility of the company's share is lower than the other related companies, it's safe to invest. Get started with Gulf Keystone Petroleum shares now and grow your portfolio.
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