Gran Tierra Energy, headquartered in Calgary, focuses on oil and natural gas exploration in Colombia and Ecuador, operating 24 blocks and employing 351 staff. Approximately 99% of its production comes from Colombia, primarily the Acordionero field.
Based on our analysis, Gran Tierra Energy has received an undervalued rating of 4 out of 5 stars from Cashu, indicating strong potential for upside. The company exhibits several key financial ratios that suggest it is trading at a price lower than its intrinsic value when compared to industry peers.
The Price-to-Earnings (PE) ratio for Gran Tierra Energy stands at 3.78, significantly lower than the sector average of 9.53. A lower PE ratio can indicate that the stock is undervalued relative to its earnings potential, making it an attractive option for investors looking for growth opportunities.
Additionally, the Price-to-Book (PB) ratio for Gran Tierra is 0.47, compared to the sector average of 1.55. A PB ratio under 1 suggests that the company's assets are being valued at less than their book value, which can indicate an undervalued position in the market.
Gran Tierra also displays a net profit margin of -0.99%, outperforming the sector average of -4.70%. This indicates that the company is managing its expenses better than many of its peers, despite not yet achieving profitability.
The return on equity (ROE) ratio for Gran Tierra is -1.59%, which is better than the sector's -4.92%. This suggests that the company is more effective at using its equity to generate losses, a positive sign for future recovery.
Finally, the return on assets ratio is -0.47%, again outperforming the sector average of -5.26%. This ratio indicates that Gran Tierra is more efficient in using its assets, which could lead to improved profitability in the future.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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