Goodrich Story

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GDP -- USA Stock  

USD 11.01  0.25  2.32%

It appears that Goodrich Petroleum will continue to recover much faster as its share price surged up 4.31% today. The firm's current daily volatility is 3.95 percent, with a beta of 1.08 and an alpha of 0.34 over DOW. Whilst many millenniums are getting more into petroleum and natural, it makes sense to recap Goodrich Petroleum. I will address the reasons why this entity does not get much respect from insiders under the current market uncertainty.
Published over three months ago
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Is Goodrich Petroleum (NYSEMKT:GDP) way too risky for millennials?
Goodrich Petroleum has roughly 1.56 M in cash with 68.9 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.12. Goodrich Petroleum has 109.45 M in debt with debt to equity (D/E) ratio of 1.47, which is OK given its current industry classification. The entity has a current ratio of 0.43, suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Investing in Goodrich Petroleum, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Goodrich Petroleum along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Goodrich Petroleum's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Goodrich Petroleum in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Goodrich Petroleum. Your research has to be compared to or analyzed against Goodrich Petroleum's peers to derive any actionable benefits. When done correctly, Goodrich Petroleum's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Goodrich Petroleum.

How important is Goodrich Petroleum's Liquidity

Goodrich Petroleum financial leverage refers to using borrowed capital as a funding source to finance Goodrich Petroleum ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Goodrich Petroleum financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Goodrich Petroleum's total debt and its cash.

How Goodrich utilizes its cash?

To perform a cash flow analysis of Goodrich Petroleum, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Goodrich Petroleum is receiving and how much cash it distributes out in a given period. The Goodrich Petroleum cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Goodrich Petroleum Net Cash Flow from Operations is very stable at the moment as compared to the past year. Goodrich Petroleum reported last year Net Cash Flow from Operations of 90.93 Million

Goodrich Petroleum Correlation with Peers

Investors in Goodrich can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Goodrich Petroleum. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Goodrich Petroleum and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Goodrich is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Goodrich for more details

A Deeper Perspective

Goodrich Petroleum appears to be somewhat reliable, given 1 month investment horizon. Goodrich Petroleum holds Efficiency (Sharpe) Ratio of 0.14, which attests that the entity had 0.14% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By evaluating Goodrich Petroleum technical indicators you can presently evaluate if the expected return of 0.57% is justified by implied risk. Please utilize Goodrich Petroleum Downside Deviation of 3.35, risk adjusted performance of 0.1429, and Market Risk Adjusted Performance of 0.4774 to validate if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the recent Goodrich Petroleum roll up

Recent Sortino Ratio is up to 0.1. Price may decline again. As of the 12th of October 2020, Goodrich Petroleum retains the Risk Adjusted Performance of 0.1429, downside deviation of 3.35, and Market Risk Adjusted Performance of 0.4774. Goodrich Petroleum technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Goodrich Petroleum, which can be compared to its competitors. Please check out Goodrich Petroleum treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Goodrich Petroleum is priced fairly, providing market reflects its last-minute price of 9.43 per share. Given that Goodrich Petroleum has jensen alpha of 0.3369, we strongly advise you to confirm Goodrich Petroleum's regular market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Goodrich Petroleum Investment

Although some other firms under the oil & gas e&p industry are still a bit expensive, Goodrich Petroleum may offer a potential longer-term growth to insiders. The bottom line, as of the 12th of October 2020, we believe that Goodrich Petroleum is currently fairly valued with below average probability of bankruptcy in the next two years. Our present 30 days buy-or-sell advice on the firm is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Goodrich Petroleum. Please refer to our Terms of Use for any information regarding our disclosure principles.

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