ASX:BPT

Stock Analysis Report

Executive Summary

Beach Energy Limited operates as an oil and gas exploration and production company.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Beach Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BPT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.2%

BPT

0.2%

AU Oil and Gas

0.02%

AU Market


1 Year Return

0.5%

BPT

-8.4%

AU Oil and Gas

14.6%

AU Market

Return vs Industry: BPT exceeded the Australian Oil and Gas industry which returned -8.4% over the past year.

Return vs Market: BPT underperformed the Australian Market which returned 14.6% over the past year.


Shareholder returns

BPTIndustryMarket
7 Day-4.2%0.2%0.02%
30 Day-24.4%-7.9%0.2%
90 Day-14.3%-4.6%5.4%
1 Year1.4%0.5%-5.5%-8.4%19.7%14.6%
3 Year216.3%195.7%12.8%1.3%38.7%20.2%
5 Year109.5%90.7%5.0%-12.0%50.6%17.1%

Price Volatility Vs. Market

How volatile is Beach Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beach Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BPT (A$2.04) is trading below our estimate of fair value (A$5.43)

Significantly Below Fair Value: BPT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BPT is good value based on its PE Ratio (8.1x) compared to the Oil and Gas industry average (8.6x).

PE vs Market: BPT is good value based on its PE Ratio (8.1x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BPT is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BPT is overvalued based on its PB Ratio (1.8x) compared to the AU Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Beach Energy forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPT's forecast earnings growth (7.6% per year) is above the savings rate (1.1%).

Earnings vs Market: BPT's earnings (7.6% per year) are forecast to grow slower than the Australian market (9.3% per year).

High Growth Earnings: BPT's earnings are forecast to grow, but not significantly.

Revenue vs Market: BPT's revenue (7.1% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: BPT's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPT's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Beach Energy performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPT has high quality earnings.

Growing Profit Margin: BPT's current net profit margins (29.1%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: BPT has become profitable over the past 5 years, growing earnings by 61.1% per year.

Accelerating Growth: BPT's earnings growth over the past year (48.4%) is below its 5-year average (61.1% per year).

Earnings vs Industry: BPT earnings growth over the past year (48.4%) exceeded the Oil and Gas industry 14.4%.


Return on Equity

High ROE: BPT's Return on Equity (21.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Beach Energy's financial position?


Financial Position Analysis

Short Term Liabilities: BPT's short term assets (A$547.6M) exceed its short term liabilities (A$519.0M).

Long Term Liabilities: BPT's short term assets (A$547.6M) do not cover its long term liabilities (A$1.0B).


Debt to Equity History and Analysis

Debt Level: BPT's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: BPT's debt to equity ratio has reduced from 8.3% to 1.2% over the past 5 years.

Debt Coverage: BPT's debt is well covered by operating cash flow (3005.6%).

Interest Coverage: BPT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BPT has a high level of physical assets or inventory.

Debt Coverage by Assets: BPT's debt is covered by short term assets (assets are 18.1x debt).


Next Steps

Dividend

What is Beach Energy's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Beach Energy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%2.3%markettop25%5.4%industryaverage4.0%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: BPT's dividend (0.98%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: BPT's dividend (0.98%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: BPT is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: BPT is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: BPT is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BPT's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Matt Kay (49yo)

3.8yrs

Tenure

AU$2,892,965

Compensation

Mr. Matthew Vincent Kay, also known as Matt, BE Commerce, MBA, FCPA, GAICD, has been Chief Executive Officer of Beach Energy Limited since May 2, 2016 and has been its Managing Director and Director since  ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD1.92M) is about average for companies of similar size in the Australian market ($USD2.22M).

Compensation vs Earnings: Matt's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Kay
CEO, MD & Director3.8yrsAU$2.89m0.16% A$7.7m
Morné Engelbrecht
Chief Financial Officer3.4yrsAU$934.14k0.0029% A$136.3k
Dawn Summers
Chief Operating Officer2yrsAU$1.05mno data
Jeffrey Schrull
Group Executive of Exploration & Appraisal3.1yrsAU$792.22k0.0015% A$73.9k
Lee Marshall
Group Executive of Corporate Strategy & Commercial2.1yrsAU$728.97kno data
Nik Burns
Investor Relations Manager0yrsno datano data
Sheree Ford
General Counsel0.6yrsno datano data
Lesley Adams
Group Executive of Human Resources0.3yrsno datano data
Rob Malinauskas
Head of Corporate Affairs & Community Relations0yrsno datano data
Peter Kupniewski
Senior Legal Manager & Company Secretary1.7yrsno datano data

2.0yrs

Average Tenure

Experienced Management: BPT's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Kay
CEO, MD & Director3.8yrsAU$2.89m0.16% A$7.7m
Ryan Stokes
Non Executive Director3.6yrsAU$125.00kno data
Joycelyn Morton
Independent Non Executive Director2yrsAU$135.00k0.0022% A$104.4k
Glenn Davis
Independent Non Executive Chairman7.3yrsAU$275.00k0.0096% A$456.1k
Philip Bainbridge
Independent Non-Executive Director3.9yrsAU$144.09k0.0052% A$246.9k
Peter Moore
Independent Non-Executive Director2.6yrsAU$140.00k0.0019% A$92.5k
Colin Beckett
Independent Non-Executive Deputy Chairman3.8yrsAU$161.00k0.0027% A$131.1k
Richard Richards
Non Executive Director3yrsAU$125.00k0.0083% A$393.2k
Sally-Anne Layman
Independent Non-Executive Director1yrsAU$38.50kno data

3.0yrs

Average Tenure

51yo

Average Age

Experienced Board: BPT's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BPT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Beach Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beach Energy Limited
  • Ticker: BPT
  • Exchange: ASX
  • Founded: 1961
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$4.766b
  • Shares outstanding: 2.28b
  • Website: https://www.beachenergy.com.au

Number of Employees


Location

  • Beach Energy Limited
  • 80 Flinders Street
  • Level 8
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEPT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
BPTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
BPSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
BPTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
BCHE.YOTCPK (Pink Sheets LLC)ADRUSUSDJul 2010

Biography

Beach Energy Limited operates as an oil and gas exploration and production company. The company engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. As of June 30, 2019, it had a production capacity of 29.4 million barrels of oil equivalent; and 326 million barrels of oil equivalent of proved plus probable reserves. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. Beach Energy Limited was founded in 1961 and is headquartered in Adelaide, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 10:35
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.