ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas E&P subindustry, Gulf Keystone Petroleum's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gulf Keystone Petroleum ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Gulf Keystone Petroleum's ROE % distribution charts can be found below:
* The bar in red indicates where Gulf Keystone Petroleum's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Gulf Keystone Petroleum (OSL:GKP) has a ROE % of 9.34% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gulf Keystone Petroleum and its competitors. This is 216% above median its historical median of 2.96. According to the industry distribution chart, Gulf Keystone Petroleum ranks #549 out of 957 companies in the Oil & Gas industry, placing it in the top 57.4%.
Is Gulf Keystone Petroleum's ROE % too high?
Gulf Keystone Petroleum's current ROE % of 9.34% is 216% above median its 10-year median of 2.96. The Oil & Gas industry median ROE % is 5.71. Gulf Keystone Petroleum's value of 9.34% is 63.6% above this industry median. Based on the distribution chart, Gulf Keystone Petroleum ranks #549 out of 957 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Gulf Keystone Petroleum has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gulf Keystone Petroleum's ROE % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Gulf Keystone Petroleum ranks #549 out of 957 companies for ROE %. This places Gulf Keystone Petroleum in the lower half of its industry. The industry median ROE % is 5.71. Gulf Keystone Petroleum's value of 9.34% is 63.6% above this benchmark. While the company's 10-year median is 2.96 vs. the industry median of 5.71, Gulf Keystone Petroleum has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Oil & Gas company?
The median ROE % among Oil & Gas companies is 5.71, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gulf Keystone Petroleum's current ROE % of 9.34% is 63.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Gulf Keystone Petroleum and its competitors. For the Oil & Gas industry, the median ROE % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Keystone Petroleum's current ROE % is 9.34%, which is 216% above median its own 10-year median of 2.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Keystone Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Gulf Keystone Petroleum (OSL:GKP) is currently considered Fairly Valued. The stock's GF Value™ is kr21.73, compared to a current price of kr22.70 — trading 4.5% above its estimated fair value. The current ROE % is 9.34%, which is 216% above median its 10-year median of 2.96 and 63.6% above the Oil & Gas industry median of 5.71. Gulf Keystone Petroleum's overall GF Score™ is 61/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Gulf Keystone Petroleum (OSL:GKP), the current ROE % is 9.34% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gulf Keystone Petroleum (OSL:GKP) Overvalued in 2026?
Based on GuruFocus' analysis, Gulf Keystone Petroleum stock appears to be overvalued.
The current stock price of kr22.70 is trading 4.5% above its estimated GF Value™ of kr21.73.
GuruFocus considers Gulf Keystone Petroleum to be Fairly Valued.
Key valuation signals for OSL:GKP:
ROE %: 9.34% (216% above median its 10-year median of 2.96)
GF Value™: kr21.73 vs. price of kr22.70 (4.5% above fair value)
Industry Position: 63.6% above the Oil & Gas median (#549 of 957)
No single metric tells the full story. See the OSL:GKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gulf Keystone Petroleum Ltd is a holding company that is engaged in the oil and gas exploration, development, and production business. The company mainly operates in the Kurdistan Region of Iraq, which consists of the Shaikan and the Erbil office, which provide support to the operations in Kurdistan. The firm has a Production Sharing Contract with the Kurdistan Regional Government. The company generates revenue from oil sales.
61GF Score
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