Yahoo Finance Why Gulf Keystone Petroleum Limited (LON:GKP) Is An Attractive Investment
Gulf Keystone Petroleum Limited (LON:GKP) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GKP, it is a company with strong financial health as well as an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Gulf Keystone Petroleum here.
High growth potential with excellent balance sheet
Investors seeking high cash growth potential should consider GKP, with forecasted operating cash flow growth of triple-digits in the upcoming year. This underlies the notable 21.3% return on equity over the next few years leading up to 2021. GKP is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that GKP manages its cash and cost levels well, which is an important determinant of the company’s health. GKP’s has produced operating cash levels of 0.78x total debt over the past year, which implies that GKP’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Gulf Keystone Petroleum, I’ve put together three pertinent aspects you should further research:
Historical Performance: What has GKP’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.
Valuation: What is GKP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GKP is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GKP? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
