Executive Summary
Horizon Oil Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has Horizon Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HZN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.8%
HZN
0.4%
AU Oil and Gas
0.7%
AU Market
1 Year Return
-33.3%
HZN
-8.8%
AU Oil and Gas
15.5%
AU Market
Return vs Industry: HZN underperformed the Australian Oil and Gas industry which returned -8.5% over the past year.
Return vs Market: HZN underperformed the Australian Market which returned 15.8% over the past year.
Shareholder returns
| HZN | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.8% | 0.4% | 0.7% |
| 30 Day | -36.0% | -7.8% | 0.8% |
| 90 Day | -42.9% | -2.8% | 6.1% |
| 1 Year | -33.3%-33.3% | -5.0%-8.8% | 20.6%15.5% |
| 3 Year | 29.0%29.0% | 12.4%0.9% | 38.1%19.7% |
| 5 Year | -33.3%-33.3% | 6.3%-11.0% | 51.8%17.9% |
Price Volatility Vs. Market
How volatile is Horizon Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Much Of Horizon Oil Limited (ASX:HZN) Do Insiders Own?1 month ago | Simply Wall St
Horizon Oil Limited (ASX:HZN) Earns Among The Best Returns In Its Industry1 month ago | Simply Wall St
Should You Use Horizon Oil's (ASX:HZN) Statutory Earnings To Analyse It?Valuation
Is Horizon Oil 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: HZN (A$0.08) is trading below our estimate of fair value (A$1.27)
Significantly Below Fair Value: HZN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HZN is good value based on its PE Ratio (2x) compared to the Oil and Gas industry average (8.7x).
PE vs Market: HZN is good value based on its PE Ratio (2x) compared to the Australian market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HZN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HZN is good value based on its PB Ratio (0.5x) compared to the AU Oil and Gas industry average (1.2x).
Next Steps
Future Growth
How is Horizon Oil forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
13.2%
Forecasted Energy industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Horizon Oil has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Horizon Oil is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Horizon Oil competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Energy industry.
Past Performance
How has Horizon Oil performed over the past 5 years?
13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HZN has high quality earnings.
Growing Profit Margin: HZN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: HZN has become profitable over the past 5 years, growing earnings by 13.9% per year.
Accelerating Growth: HZN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: HZN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (58.2%).
Return on Equity
High ROE: HZN's Return on Equity (25.4%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Horizon Oil's financial position?
Financial Position Analysis
Short Term Liabilities: HZN's short term assets ($39.4M) exceed its short term liabilities ($25.5M).
Long Term Liabilities: HZN's short term assets ($39.4M) do not cover its long term liabilities ($95.8M).
Debt to Equity History and Analysis
Debt Level: HZN's debt to equity ratio (34%) is considered satisfactory.
Reducing Debt: HZN's debt to equity ratio has reduced from 84.1% to 34% over the past 5 years.
Balance Sheet
Inventory Level: HZN has a high level of physical assets or inventory.
Debt Coverage by Assets: HZN's debt is not covered by short term assets (assets are 0.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: HZN is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: HZN is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Horizon Oil's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HZN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate HZN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HZN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HZN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HZN'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?
1.6yrs
Average management tenure
CEO
Michael Sheridan 0
1.6yrs
Tenure
US$1,103,944
Compensation
Mr. Michael F. Sheridan, B.Ec, LL.M., F Fin has been Managing Director of Horizon Oil Ltd. since July 1, 2018. Mr. Sheridan has been the Chief Executive Officer and Executive Director at Horizon Oil Ltd., ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD1.10M) is above average for companies of similar size in the Australian market ($USD253.17K).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 1.6yrs | US$1.10m | 0.61% $637.5k | |
| Chief Financial Officer | 1.6yrs | US$434.96k | 0.0029% $3.1k | |
| General Counsel & Company Secretary | 4.1yrs | US$345.11k | no data | |
| Assistant Company Secretary | 1.3yrs | no data | no data |
1.6yrs
Average Tenure
Experienced Management: HZN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 1.6yrs | US$1.10m | 0.61% $637.5k | |
| Independent Chairman | 1.3yrs | US$74.75k | no data | |
| Non Executive Director | 12.7yrs | US$63.77k | 0.17% $176.3k | |
| Non-Executive Director | 0.8yrs | US$13.70k | no data | |
| Non-Executive Director | 2.9yrs | US$63.77k | no data | |
| Non-Executive Independent Director | 4yrs | US$63.77k | no data | |
| Alternate Non-Executive Director | 2.9yrs | no data | no data |
2.9yrs
Average Tenure
67yo
Average Age
Experienced Board: HZN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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
Horizon Oil Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Horizon Oil Limited
- Ticker: HZN
- Exchange: ASX
- Founded:
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: AU$104.279m
- Shares outstanding: 1.30b
- Website: https://www.horizonoil.com.au
Number of Employees
Location
- Horizon Oil Limited
- 134 William Street
- Level 6
- Sydney
- New South Wales
- 2011
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HOJ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| HZN | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| HZNF.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| HZN | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
Biography
Horizon Oil Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties. It holds interest in the Block 22/12 oil field in Beibu Gulf, China, as well as engages in the exploration and evaluation of hydrocarbons; Maari/Manaia fields in New Zealand; and Stanley condensate/gas development and seven onshore permits in Papua New Guinea. Horizon Oil Limited is based in Sydney, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/21 10:37 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.