Value
8.0/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 9.7 |
| P/S | 8.8 |
| EV/EBITDA | 9.4 |
| Fwd P/E | 9.8 |
| PEG | 5.4 |
| Analyst target | 6.0 |
- ▸Forward P/E: 6.2x
- ▸PEG: 1.41
- ▸Attractively valued
GPOR · Why this verdict
Why Gulfport Energy (GPOR) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictHOLD
Overall score5.7/10
ConfidenceMEDIUM
MacroNEUTRAL
TrendMatrix Research · core thesis
Engine thesis — one sentence
The business demonstrates exceptional quality—a wide economic moat, 34% return on equity, 42% operating margins, and a Piotroski F-score of 8 out of 9—paired with 32% revenue growth and roughly 30% upside to the analyst price target; the primary near-term overhangs are weak price momentum and a free cash flow conversion shortfall that deserve monitoring before adding to the position.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Over 81% of production is concentrated in two geographic regions, representing a material single-point-of-failure risk if either basin experiences regulatory, pricing, or operational disruption—a risk the available data classifies as high severity. Bear case | Production concentration in the top two basins should move below 70% within 12 months as evidence of meaningful geographic diversification. | ↓Deteriorating |
| CounterHigh geographic focus can imply operational efficiency and deep-basin expertise; concentrated operators often achieve better per-unit economics in their chosen basins than broadly diversified peers. | ||
With a return on equity of 34%, operating margins of 42%, a wide economic moat, and a Piotroski F-score of 8 out of 9, this is a genuinely high-quality business generating strong returns across multiple quality dimensions simultaneously. Quality | Return on equity should sustain above 20% for the next 4 quarters, confirming that the high-return profile is durable rather than a one-cycle phenomenon. | →Stable |
| CounterGeographic concentration in two basins covering 81% of operations—identified as a significant risk—means the strong margins and returns could be impaired more severely than for diversified operators if either basin faces adverse conditions. | ||
Revenue grew 32% year-over-year with peer-relative rankings on both value and growth metrics near the top of the industry, suggesting the company is expanding its output or realizing stronger pricing in its key markets. Growth breakdown | Revenue growth should remain above 10% year-over-year for at least 2 of the next 4 quarters, confirming the current expansion is durable. | ↓Deteriorating |
| CounterThe most recent quarter produced a 5.78% earnings miss, which may indicate that cost pressures or production challenges are beginning to emerge against the strong revenue backdrop. | ||
Free cash flow represents only 25% of net income—flagged as a red flag in the quality assessment—meaning that roughly three-quarters of reported earnings do not materialize as spendable cash, a gap that deserves resolution before the earnings-based valuation fully holds. Quality breakdown | Free cash flow as a percentage of net income should recover above 60% for 2 consecutive quarters, demonstrating that the gap between reported and cash earnings is narrowing. | →Stable |
| CounterFCF can temporarily lag net income during periods of rapid revenue growth due to working capital absorption; if the underlying cash dynamics normalize as expansion matures, the conversion rate could improve without signaling any fundamental problem. | ||
Price has pulled back below the 200-day moving average, but the long-term average itself continues to trend higher at +0.4% per 30 days—a condition the available data explicitly characterizes as a pullback within an uptrend rather than a confirmed trend reversal. Momentum breakdown | Price should recover above the 200-day moving average within 6 months, with the long-term average slope remaining positive, confirming the uptrend has not broken. | →Stable |
| CounterMomentum has fallen to 2.6, RSI is at 31, MACD is bearish, and the OBV is declining, creating conditions where a temporary pullback can become self-reinforcing and turn into a genuine breakdown if no catalyst materializes. | ||
Over 81% of production is concentrated in two geographic regions, representing a material single-point-of-failure risk if either basin experiences regulatory, pricing, or operational disruption—a risk the available data classifies as high severity.
↓DeterioratingBear case
- Expectation
- Production concentration in the top two basins should move below 70% within 12 months as evidence of meaningful geographic diversification.
CounterHigh geographic focus can imply operational efficiency and deep-basin expertise; concentrated operators often achieve better per-unit economics in their chosen basins than broadly diversified peers.
With a return on equity of 34%, operating margins of 42%, a wide economic moat, and a Piotroski F-score of 8 out of 9, this is a genuinely high-quality business generating strong returns across multiple quality dimensions simultaneously.
→StableQuality
- Expectation
- Return on equity should sustain above 20% for the next 4 quarters, confirming that the high-return profile is durable rather than a one-cycle phenomenon.
CounterGeographic concentration in two basins covering 81% of operations—identified as a significant risk—means the strong margins and returns could be impaired more severely than for diversified operators if either basin faces adverse conditions.
Revenue grew 32% year-over-year with peer-relative rankings on both value and growth metrics near the top of the industry, suggesting the company is expanding its output or realizing stronger pricing in its key markets.
↓DeterioratingGrowth breakdown
- Expectation
- Revenue growth should remain above 10% year-over-year for at least 2 of the next 4 quarters, confirming the current expansion is durable.
CounterThe most recent quarter produced a 5.78% earnings miss, which may indicate that cost pressures or production challenges are beginning to emerge against the strong revenue backdrop.
Free cash flow represents only 25% of net income—flagged as a red flag in the quality assessment—meaning that roughly three-quarters of reported earnings do not materialize as spendable cash, a gap that deserves resolution before the earnings-based valuation fully holds.
→StableQuality breakdown
- Expectation
- Free cash flow as a percentage of net income should recover above 60% for 2 consecutive quarters, demonstrating that the gap between reported and cash earnings is narrowing.
CounterFCF can temporarily lag net income during periods of rapid revenue growth due to working capital absorption; if the underlying cash dynamics normalize as expansion matures, the conversion rate could improve without signaling any fundamental problem.
Price has pulled back below the 200-day moving average, but the long-term average itself continues to trend higher at +0.4% per 30 days—a condition the available data explicitly characterizes as a pullback within an uptrend rather than a confirmed trend reversal.
→StableMomentum breakdown
- Expectation
- Price should recover above the 200-day moving average within 6 months, with the long-term average slope remaining positive, confirming the uptrend has not broken.
CounterMomentum has fallen to 2.6, RSI is at 31, MACD is bearish, and the OBV is declining, creating conditions where a temporary pullback can become self-reinforcing and turn into a genuine breakdown if no catalyst materializes.
Per-dimension breakdown
Quality
6.9/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 9.1 |
| ROA | 9.4 |
| Gross margin | 9.6 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 2.3 |
| FCF quality | 1.6 |
| Moat | 6.5 |
| Rule of 40 | 3.0 |
| Piotroski F | 7.8 |
- ▸Excellent ROE: 27%
- ▸Strong margins: 36%
- ▸Earnings quality RED FLAG: 21% FCF/NI
- ▸Rule of 40: -9 (fail)
Growth
1.4/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 0.0 |
| EPS growth | 2.9 |
- ▸Declining revenue: -16%
Momentum
6.2/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.1 |
| MACD | 10.0 |
| OBV | 10.0 |
| MA position | 6.0 |
| Volume | 1.9 |
- ▸Volume accumulation (rising OBV)
- ▸Below 200-MA, MA slope -1.7%/30d — confirmed downtrend
Sentiment
7.0/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.1 |
| Price target | 8.6 |
| erm sentiment | 5.0 |
- ▸Analyst upside: 30%
Insider
7.5/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 5.5 |
| holder change | 10.0 |
| notable moves | 7.0 |
- ▸Insider buying (low materiality) — $256,976 (0.008% of mkt cap)
- ▸Institutions accumulating
Peer rank
4.8/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 6.4 |
| quality rank | 8.8 |
| growth rank | 0.4 |
- ▸Attractive P/E vs peers
- ▸Superior ROE vs peers
Technical
2.6/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 1.3 |
| support resistance | 1.1 |
| 52w position | 5.4 |
Risk (lower is worse)
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 6.6 |
| days to cover | 8.6 |
| volatility | 5.2 |
| put call | 0.0 |
| implied vol | 8.1 |
| beta | 10.0 |
| debt equity | 8.0 |
- ▸Elevated put/call: 5.74
- ▸Concentration risks: 2 HIGH, 1 MED (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 5.6 |
| earnings timing | 5.0 |
| surprise avg | 2.7 |
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (6)
- MOMENTUM:6.2>=5.5
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:75d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- ASYMMETRY:1.0<1.5@spot
Warning (2)
- DEATH_CROSS:momentum=6.2>=5.0 recovering
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
1.00
Upside
+13.3%
Downside
13.4%
Sizing output
AVOID
SetupRecovery — Death cross but MACD improving, RSI 69
EdgeNo clear edge — No clear edge identified
SuitabilityAggressive — MCap $3.1B<$5B
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: MOMENTUM:6.2>=5.5. Top dim: Value at 8.0; weakest: Growth at 1.4. No conviction either direction.
The strongest dimensions are Value at 8.0, Insider at 7.5, and Sentiment at 7.0; the weakest are Growth at 1.4, Technical at 2.6, and Catalyst at 4.6. The V9 engine flagged 1 failed gate with 2 warnings, producing an asymmetric reward-to-risk of 1.00 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1High Quality Franchise Wide Moat
Trip ifReturn on equity falls below 15% for 2 consecutive quarters.
- P2Strong Revenue Growth
Trip ifRevenue growth falls below 10% year-over-year for 2 consecutive quarters.
- P3Fcf Earnings Conversion Gap
Trip ifFree cash flow as a percentage of net income rises above 60% for 2 consecutive quarters.
- P4Geographic Concentration Overhang
Trip ifProduction concentration in the top two basins falls below 70% for 2 consecutive reporting periods.
- P5Price Pullback In Intact Uptrend
Trip ifThe 200-day moving-average slope falls below 0% for 2 consecutive months, confirming the uptrend has reversed.