ASX:CTX

Stock Analysis Report

Caltex Australia

Executive Summary

Caltex Australia Limited engages in purchasing, refining, distributing, selling, and suppling petroleum products in Australia, New Zealand, and Singapore.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.

Share Price & News

How has Caltex Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

CTX

-0.03%

AU Oil and Gas

0.7%

AU Market


1 Year Return

4.6%

CTX

6.2%

AU Oil and Gas

17.7%

AU Market

Return vs Industry: CTX underperformed the Australian Oil and Gas industry which returned 6.2% over the past year.

Return vs Market: CTX underperformed the Australian Market which returned 17.7% over the past year.


Shareholder returns

CTXIndustryMarket
7 Day-2.0%-0.03%0.7%
30 Day0.8%4.3%2.0%
90 Day4.3%8.1%4.9%
1 Year8.3%4.6%10.6%6.2%24.5%17.7%
3 Year1.4%-9.1%19.3%6.9%40.5%21.3%
5 Year4.8%-12.0%-6.5%-19.8%57.1%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Caltex Australia 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: CTX (A$27.64) is trading below our estimate of fair value (A$101.49)

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


Price To Earnings Ratio

PE vs Industry: CTX is poor value based on its PE Ratio (21.5x) compared to the Oil and Gas industry average (9x).

PE vs Market: CTX is poor value based on its PE Ratio (21.5x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: CTX is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: CTX is overvalued based on its PB Ratio (2.2x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Caltex Australia forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTX's forecast earnings growth (20.5% per year) is above the savings rate (2.3%).

Earnings vs Market: CTX's earnings (20.5% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTX's revenue (2.8% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: CTX's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTX's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Caltex Australia performed over the past 5 years?

14.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTX has high quality earnings.

Growing Profit Margin: CTX's current net profit margins (1.5%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CTX's earnings have grown by 14.9% per year over the past 5 years.

Accelerating Growth: CTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTX had negative earnings growth (-54.8%) over the past year, making it difficult to compare to the Oil and Gas industry average (68.1%).


Return on Equity

High ROE: CTX's Return on Equity (10.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Caltex Australia's financial position?


Financial Position Analysis

Short Term Liabilities: CTX's short term assets (A$3.3B) exceeds its short term liabilities (A$2.6B)

Long Term Liabilities: CTX's short term assets (A$3.3B) exceeds its long term liabilities (2.3B)


Debt to Equity History and Analysis

Debt Level: CTX's debt to equity ratio (41.1%) is considered high.

Reducing Debt: CTX's debt to equity ratio has increased from 36.4% to 41.1% over the past 5 years.

Debt Coverage: CTX's debt is well covered by operating cash flow (56.8%).

Interest Coverage: CTX's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTX's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is Caltex Australia's current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.3%markettop25%5.6%industryaverage4.3%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: CTX's dividend (3.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: CTX's dividend (3.36%) is low compared to the top 25% of dividend payers in the Australian market (5.63%).


Stability and Growth of Payments

Stable Dividend: CTX's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.2%), CTX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTX's dividends in 3 years are forecast to be covered by earnings (59.3% payout ratio).


Next Steps

Management

What is the CEO of Caltex Australia's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Julian Segal (64yo)

10.3yrs

Tenure

AU$5,213,219

Compensation

Mr. Julian Segal, B.Sc., M.B.A., has been Managing Director and Chief Executive Officer of Caltex Australia Ltd. since July 1, 2009. Mr. Segal served as the Chief Executive Officer and Managing Director of ...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD3.56M) is above average for companies of similar size in the Australian market ($USD2.28M).

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


Management Age and Tenure

2.5yrs

Average Tenure

Experienced Management: CTX's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

62yo

Average Age

Experienced Board: CTX's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$27,08601 Aug 19
State Street Global Advisors, Inc.
EntityCompany
Shares1,712,639
Max PriceAU$27.81
SellAU$17,122,54728 Jul 19
Magellan Asset Management Limited
EntityCompany
Shares770,557
Max PriceAU$22.22
BuyAU$6,273,80828 Jul 19
Magellan Asset Management Limited
EntityCompany
Shares256,707
Max PriceAU$26.58
BuyAU$99,54727 Jun 19
Julian Segal
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares4,150
Max PriceAU$23.99
SellAU$473,98126 Jun 19
State Street Global Advisors, Inc.
EntityCompany
Shares20,033
Max PriceAU$23.66
BuyAU$62,51726 Jun 19
State Street Global Advisors, Inc.
EntityCompany
Shares2,593
Max PriceAU$24.11
BuyAU$34,473,72925 Jun 19
State Street Global Advisors, Inc.
EntityCompany
Shares1,245,490
Max PriceAU$27.81
BuyAU$106,053,60129 May 19
Magellan Asset Management Limited
EntityCompany
Shares3,907,029
Max PriceAU$27.14
BuyAU$109,619,96301 May 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares3,961,690
Max PriceAU$27.67
SellAU$48,572,36501 May 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares1,737,209
Max PriceAU$27.96
SellAU$1,419,04726 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares48,892
Max PriceAU$29.02
BuyAU$64,687,65226 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares2,203,696
Max PriceAU$29.35
SellAU$2,997,52418 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares108,135
Max PriceAU$27.82
BuyAU$1,378,24618 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares50,229
Max PriceAU$27.86
BuyAU$13,719,20312 Mar 19
State Street Global Advisors, Inc.
EntityCompany
Shares487,800
Max PriceAU$29.20
SellAU$301,86606 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares10,402
Max PriceAU$29.02
BuyAU$29,406,85106 Mar 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares1,001,937
Max PriceAU$29.35
BuyAU$80,921,50108 Jan 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares2,665,903
Max PriceAU$30.35
SellAU$5,294,28408 Jan 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares174,441
Max PriceAU$30.35
BuyAU$26,23421 Nov 18
Trevor Bourne
EntityIndividual
Shares1,000
Max PriceAU$26.23

Ownership Breakdown

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


Management Team

  • Julian Segal (64yo)

    MD, CEO & Director

    • Tenure: 10.3yrs
    • Compensation: AU$5.21m
  • Joanne Taylor

    Executive General Manager of Convenience Retail

    • Tenure: 0yrs
    • Compensation: AU$823.72k
  • Louise Warner

    Executive General Manager of Fuels & Infrastructure

    • Tenure: 3.1yrs
    • Compensation: AU$1.71m
  • Lyndall Stoyles

    Executive General Manager of People

    • Tenure: 0.8yrs
    • Compensation: AU$120.80k
  • Viv Da Ros

    Chief Information Officer

    • Tenure: 2.9yrs
    • Compensation: AU$41.49k
  • Alan Stuart-Grant

    Executive General Manager of Strategy & Corporate Development

    • Tenure: 2yrs
  • Dale Koenders

    Head of Investor Relations

    • Tenure: 0yrs
  • Richard Baker

    Head of Corporate Communications

    • Tenure: 0yrs
  • Matthew Halliday

    Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • Steven Gregg (58yo)

    Independent Chairman

    • Tenure: 2.3yrs
    • Compensation: AU$550.16k
  • Barbara Ward (65yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: AU$255.79k
  • Mark Chellew (62yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: AU$137.48k
  • Penny Winn

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$227.11k
  • Julian Segal (64yo)

    MD, CEO & Director

    • Tenure: 10.3yrs
    • Compensation: AU$5.21m
  • Melinda Conrad (50yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$227.20k
  • Bruce William Morgan

    Independent Non-Executive Director

    • Tenure: 6.4yrs
    • Compensation: AU$256.62k

Company Information

Caltex Australia Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Caltex Australia Limited
  • Ticker: CTX
  • Exchange: ASX
  • Founded: 1900
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: AU$6.902b
  • Shares outstanding: 249.71m
  • Website: https://www.caltex.com.au

Number of Employees


Location

  • Caltex Australia Limited
  • 2 Market Street
  • Level 24
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTXA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CTXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
CLZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CTXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
CTXA.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008
CAUASX (Australian Securities Exchange)NPVAUAUDOct 2019

Biography

Caltex Australia Limited engages in purchasing, refining, distributing, selling, and suppling petroleum products in Australia, New Zealand, and Singapore. It operates through Convenience Retail, and Fuels  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:32
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.