ASX:HZN

Stock Analysis Report

Executive Summary

Horizon Oil Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties.


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

HZNIndustryMarket
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 Year29.0%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

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

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

NamePositionTenureCompensationOwnership
Michael Sheridan
MD, CEO & Executive Director1.6yrsUS$1.10m0.61% $637.5k
Richard Beament
Chief Financial Officer1.6yrsUS$434.96k0.0029% $3.1k
Kylie Quinlivan
General Counsel & Company Secretary4.1yrsUS$345.11kno data
Kyle Keen
Assistant Company Secretary1.3yrsno datano 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

NamePositionTenureCompensationOwnership
Michael Sheridan
MD, CEO & Executive Director1.6yrsUS$1.10m0.61% $637.5k
Richard Harding
Independent Chairman1.3yrsUS$74.75kno data
Gerrit de Nys
Non Executive Director12.7yrsUS$63.77k0.17% $176.3k
Christopher Hodge
Non-Executive Director0.8yrsUS$13.70kno data
Gregory Bittar
Non-Executive Director2.9yrsUS$63.77kno data
Sandra Birkensleigh
Non-Executive Independent Director4yrsUS$63.77kno data
Bruno Lorenzon
Alternate Non-Executive Director2.9yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HOJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HZNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
HZNF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HZNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 10:37
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
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.