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Horizon Oil

ASX:HZN
Snowflake Description

Undervalued with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HZN
ASX
A$156M
Market Cap
  1. Home
  2. AU
  3. Energy
Company description

Horizon Oil Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas properties. The last earnings update was 60 days ago. More info.


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HZN Share Price and Events
7 Day Returns
0%
ASX:HZN
0.8%
AU Oil and Gas
-0%
AU Market
1 Year Returns
-7.7%
ASX:HZN
3.7%
AU Oil and Gas
4.9%
AU Market
HZN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Horizon Oil (HZN) 0% 9.1% 4.3% -7.7% 71.4% -67.6%
AU Oil and Gas 0.8% -0.7% 5.6% 3.7% 30.5% -32%
AU Market -0% 1.5% 6.5% 4.9% 18.2% 4.8%
1 Year Return vs Industry and Market
  • HZN underperformed the Oil and Gas industry which returned 3.7% over the past year.
  • HZN underperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
HZN
Industry
5yr Volatility vs Market

HZN Value

 Is Horizon Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Horizon Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Horizon Oil.

ASX:HZN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 10.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:HZN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.95
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.954 (1 + (1- 30%) (73.96%))
1.3
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.3
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.3 * 5.96%)
10.06%

Discounted Cash Flow Calculation for ASX:HZN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Horizon Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:HZN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.06%)
2019 44.80 Est @ 24.07% 40.71
2020 52.66 Est @ 17.54% 43.47
2021 59.49 Est @ 12.97% 44.63
2022 65.31 Est @ 9.78% 44.51
2023 70.23 Est @ 7.54% 43.49
2024 74.42 Est @ 5.97% 41.88
2025 78.05 Est @ 4.87% 39.90
2026 81.25 Est @ 4.1% 37.75
2027 84.15 Est @ 3.57% 35.52
2028 86.83 Est @ 3.19% 33.30
Present value of next 10 years cash flows $405.16
ASX:HZN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $86.83 × (1 + 2.31%) ÷ (10.06% – 2.31%)
$1,146.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,146.98 ÷ (1 + 10.06%)10
$439.91
ASX:HZN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $405.16 + $439.91
$845.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $845.07 / 1,303.48
$0.65
ASX:HZN Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:HZN)
1.399
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $0.65 x 1.399
A$0.91
Value per share (AUD) From above. A$0.91
Current discount Discount to share price of A$0.12
= -1 x (A$0.12 - A$0.91) / A$0.91
86.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Horizon Oil is available for.
Intrinsic value
>50%
Share price is A$0.12 vs Future cash flow value of A$0.9068
Current Discount Checks
For Horizon Oil to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Horizon Oil's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Horizon Oil's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Horizon Oil's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Horizon Oil's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:HZN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.02
ASX:HZN Share Price ** ASX (2019-04-18) in AUD A$0.12
ASX:HZN Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $0.09
Australia Oil and Gas Industry PE Ratio Median Figure of 23 Publicly-Listed Oil and Gas Companies 7.92x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Horizon Oil.

ASX:HZN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:HZN Share Price ÷ EPS (both in USD)

= 0.09 ÷ 0.02

4.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Horizon Oil is good value based on earnings compared to the AU Oil and Gas industry average.
  • Horizon Oil is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Horizon Oil's expected growth come at a high price?
Raw Data
ASX:HZN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Australia Oil and Gas Industry PEG Ratio Median Figure of 17 Publicly-Listed Oil and Gas Companies 0.24x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Horizon Oil, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Horizon Oil's assets?
Raw Data
ASX:HZN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $0.10
ASX:HZN Share Price * ASX (2019-04-18) in AUD A$0.12
ASX:HZN Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $0.09
Australia Oil and Gas Industry PB Ratio Median Figure of 144 Publicly-Listed Oil and Gas Companies 1.31x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:HZN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:HZN Share Price ÷ Book Value per Share (both in USD)

= 0.09 ÷ 0.10

0.88x

* Primary Listing of Horizon Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Horizon Oil is good value based on assets compared to the AU Oil and Gas industry average.
X
Value checks
We assess Horizon Oil's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Horizon Oil has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HZN Future Performance

 How is Horizon Oil expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.2%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Horizon Oil expected to grow at an attractive rate?
  • Unable to compare Horizon Oil's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Horizon Oil's earnings growth to the Australia market average as no estimate data is available.
  • Unable to compare Horizon Oil's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:HZN Future Growth Rates Data Sources
Data Point Source Value (per year)
Australia Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
Australia Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.5%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:HZN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:HZN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
ASX:HZN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 127 68 27
2018-09-30 114 63 12
2018-06-30 100 58 -3
2018-03-31 87 49 -4
2017-12-31 73 40 -5
2017-09-30 71 38 -3
2017-06-30 69 36 0
2017-03-31 67 35 -54
2016-12-31 66 35 -108
2016-09-30 71 40 -126
2016-06-30 76 44 -144
2016-03-31 84 55 -88

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Horizon Oil is high growth as no earnings estimate data is available.
  • Unable to determine if Horizon Oil is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:HZN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Horizon Oil Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HZN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
ASX:HZN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.02
2018-09-30 0.01
2018-06-30 0.00
2018-03-31 0.00
2017-12-31 0.00
2017-09-30 0.00
2017-06-30 0.00
2017-03-31 -0.04
2016-12-31 -0.08
2016-09-30 -0.10
2016-06-30 -0.11
2016-03-31 -0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Horizon Oil will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Horizon Oil is trading at Horizon Oil'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Horizon Oil's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. Horizon Oil's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Horizon Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Horizon Oil has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HZN Past Performance

  How has Horizon Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Horizon Oil's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Horizon Oil's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Horizon Oil has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Horizon Oil has become profitable in the last year making it difficult to compare the AU Oil and Gas industry average.
Earnings and Revenue History
Horizon Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Horizon Oil Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HZN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 127.22 27.05 5.14
2018-09-30 113.63 12.23 6.16
2018-06-30 100.04 -2.60 7.18
2018-03-31 86.70 -3.72 7.58
2017-12-31 73.36 -4.83 7.97
2017-09-30 70.95 -2.59 7.54
2017-06-30 68.53 -0.34 7.11
2017-03-31 67.42 -53.94 8.07
2016-12-31 66.31 -107.54 9.03
2016-09-30 71.13 -126.00 9.49
2016-06-30 75.95 -144.47 9.95
2016-03-31 84.00 -87.74 11.73
2015-12-31 92.05 -31.02 13.51
2015-09-30 98.00 -6.34 18.65
2015-06-30 103.95 18.33 23.79
2015-03-31 115.39 19.29 27.08
2014-12-31 126.83 20.25 30.37
2014-09-30 132.64 16.54 24.54
2014-06-30 138.45 12.83 18.70
2014-03-31 116.52 11.52 12.53
2013-12-31 94.58 10.20 6.36
2013-09-30 71.33 6.84 7.00
2013-06-30 48.07 3.47 7.64
2013-03-31 44.34 -2.08 8.50
2012-12-31 40.62 -7.62 9.36
2012-09-30 45.50 0.01 8.88
2012-06-30 50.39 7.65 8.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Horizon Oil has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Horizon Oil used its assets more efficiently than the AU Oil and Gas industry average last year based on Return on Assets.
  • Horizon Oil has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Horizon Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Horizon Oil has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HZN Health

 How is Horizon Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Horizon Oil's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Horizon Oil's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Horizon Oil's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Horizon Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Horizon Oil Company Filings, last reported 3 months ago.

ASX:HZN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 127.17 82.71 20.36
2018-09-30 127.17 82.71 20.36
2018-06-30 95.31 112.01 27.63
2018-03-31 95.31 112.01 27.63
2017-12-31 91.96 120.01 31.67
2017-09-30 91.96 120.01 31.67
2017-06-30 106.73 124.80 24.53
2017-03-31 106.73 124.80 24.53
2016-12-31 97.34 128.44 18.35
2016-09-30 97.34 128.44 18.35
2016-06-30 104.53 144.37 16.08
2016-03-31 104.53 144.37 16.08
2015-12-31 213.71 176.91 51.07
2015-09-30 213.71 176.91 51.07
2015-06-30 256.32 194.39 61.34
2015-03-31 256.32 194.39 61.34
2014-12-31 256.40 182.18 43.51
2014-09-30 256.40 182.18 43.51
2014-06-30 222.57 187.45 98.91
2014-03-31 222.57 187.45 98.91
2013-12-31 209.10 199.01 37.10
2013-09-30 209.10 199.01 37.10
2013-06-30 167.01 195.57 19.03
2013-03-31 167.01 195.57 19.03
2012-12-31 154.63 184.39 48.42
2012-09-30 154.63 184.39 48.42
2012-06-30 161.72 100.72 19.29
  • Horizon Oil's level of debt (65%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (95% vs 65% today).
  • Debt is well covered by operating cash flow (81.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.5x coverage).
X
Financial health checks
We assess Horizon Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Horizon Oil has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HZN Dividends

 What is Horizon Oil's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Horizon Oil dividends.
If you bought A$2,000 of Horizon Oil shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Horizon Oil's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Horizon Oil's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:HZN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 4.6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:HZN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Horizon Oil has not reported any payouts.
  • Unable to verify if Horizon Oil's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Horizon Oil's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Horizon Oil has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Horizon Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Horizon Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Horizon Oil has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HZN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Michael Sheridan
COMPENSATION $916,103
TENURE AS CEO 0.8 years
CEO Bio

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 Director at Horizon Oil Ltd., since July 1, 2018. Mr. Sheridan was the Chief Financial Officer and Company Secretary of Horizon Oil Limited (alternate name Horizon Oil NL) since 2003 until July 1, 2018. He had been responsible for financial, commercial and legal affairs. Before joining Horizon in 2003, Mr. Sheridan held Senior Finance and commercial roles in Australian and international oil and gas, mining and telecommunications companies. He holds B.Ec, LL.M, A.S.I.A.

CEO Compensation
  • Michael's compensation has increased in line with Horizon Oil recently becoming profitable.
  • Michael's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Horizon Oil management team in years:

0.8
Average Tenure
  • The average tenure for the Horizon Oil management team is less than 2 years, this suggests a new team.
Management Team

Michael Sheridan

TITLE
MD, CEO & Director
COMPENSATION
$916K
TENURE
0.8 yrs

Richard Beament

TITLE
Chief Financial Officer
TENURE
0.8 yrs

Andrew McArdle

TITLE
Chief Operating Officer
TENURE
1.3 yrs

Kylie Quinlivan

TITLE
General Counsel & Company Secretary
TENURE
3.3 yrs

Kelvin Bramley

TITLE
Chief Company Representative - PNG
COMPENSATION
$148K

Kyle Keen

TITLE
Assistant Company Secretary
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Horizon Oil board of directors in years:

2.1
Average Tenure
66
Average Age
  • The average tenure for the Horizon Oil board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mike Harding

TITLE
Chairman
AGE
69
TENURE
0.4 yrs

Michael Sheridan

TITLE
MD, CEO & Director
COMPENSATION
$916K
TENURE
0.8 yrs

Gerrit de Nys

TITLE
Non Executive Director
COMPENSATION
$69K
AGE
75
TENURE
11.8 yrs

Sandra Birkensleigh

TITLE
Non-Executive Independent Director
COMPENSATION
$69K
AGE
63
TENURE
3.2 yrs

Greg Bittar

TITLE
Non-Executive Director
COMPENSATION
$69K
AGE
47
TENURE
2.1 yrs

Chris Hodge

TITLE
Independent Non-Executive Director
AGE
66

Bruno Lorenzon

TITLE
Alternate Director
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
12. Apr 19 Sell Spheria Asset Management Pty Ltd Company 09. Oct 18 24. Oct 18 -1,589,620 A$0.15 A$-233,886
12. Apr 19 Buy Spheria Asset Management Pty Ltd Company 11. Sep 18 11. Apr 19 15,348,152 A$0.12 A$1,775,032
28. Aug 18 Sell Spheria Asset Management Pty Ltd Company 07. May 18 11. May 18 -7,146,548 A$0.15 A$-1,058,575
28. Aug 18 Buy Spheria Asset Management Pty Ltd Company 02. May 18 24. Aug 18 22,770,897 A$0.12 A$2,744,959
04. May 18 Buy Pinnacle Investment Management Limited Company 22. Mar 18 02. May 18 13,658,323 A$0.14 A$1,859,644
01. May 18 Buy Spheria Asset Management Pty Ltd Company 14. Feb 18 30. Apr 18 13,258,463 A$0.13 A$1,721,473
X
Management checks
We assess Horizon Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Horizon Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HZN News

Simply Wall St News

Is Horizon Oil Limited's (ASX:HZN) Balance Sheet A Threat To Its Future?

Investors are always looking for growth in small-cap stocks like Horizon Oil Limited (ASX:HZN), with a market cap of AU$150m. … However, an important fact which most ignore is: how financially healthy is the business? … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Should You Be Concerned About Horizon Oil Limited's (ASX:HZN) Historical Volatility?

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Does Horizon Oil's Share Price Gain of 74% Match Its Business Performance?

By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Horizon Oil moved from a loss to profitability. … So we would expect a higher share price over the period

Simply Wall St -

Can We See Significant Insider Ownership On The Horizon Oil Limited (ASX:HZN) Share Register?

If you want to know who really controls Horizon Oil Limited (ASX:HZN), then you'll have to look at the makeup of its share registry. … With a market capitalization of AU$128m, Horizon Oil is a small cap stock, so it might not be well known by many institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Is Horizon Oil Limited's (ASX:HZN) Balance Sheet Strong Enough To Weather A Storm?

Horizon Oil Limited (ASX:HZN) is a small-cap stock with a market capitalization of AU$137m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

Does Horizon Oil Limited (ASX:HZN) Have A Particularly Volatile Share Price?

In finance, Beta is a measure of volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

How Financially Strong Is Horizon Oil Limited (ASX:HZN)?

Investors are always looking for growth in small-cap stocks like Horizon Oil Limited (ASX:HZN), with a market cap of AU$162.9m. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

What You Must Know About Horizon Oil Limited's (ASX:HZN) Financial Strength

How does HZN’s operating cash flow stack up against its debt? … On top of this, HZN has generated cash from operations of US$35.63M over the same time period, leading to an operating cash to total debt ratio of 28.55%, meaning that HZN’s debt is appropriately covered by operating cash. … Maintaining a high level of debt, while revenues are still below costs, can be dangerous as liquidity tends to dry up in unexpected downturns.Next Steps: Although HZN’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

How Confident Are Insiders About Horizon Oil Limited (ASX:HZN)?

Did Insiders Buy On Share Price Volatility? … Within the past three months, Horizon Oil’s share price traded at a high of A$0.14 and a low of A$0.09. … Next Steps: Horizon Oil’s net buying tells us the stock is in favour with some insiders, reinforced by the substantial earnings growth expectations, and a fairly high volatility in share price over the same time period.

Simply Wall St -

Is Horizon Oil Limited (ASX:HZN) An Energy Industry Laggard Or Leader?

This rate is below the growth rate of the Australian stock market as a whole. … However, recently the sector saw a reversal in the downturn, and over the past year, the industry turnaround led to growth of over 50%, beating the Australian market growth of 5.37%. … ASX:HZN PE PEG Gauge Nov 22nd 17 The oil and gas industry is trading at a PE ratio of 11x, lower than the rest of the Australian stock market PE of 17x.

Simply Wall St -

HZN Company Info

Description

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 six onshore permits in Papua New Guinea. Horizon Oil Limited is headquartered in Sydney, Australia.

Details
Name: Horizon Oil Limited
HZN
Exchange: ASX
Founded:
A$156,417,751
1,303,481,265
Website: http://www.horizonoil.com.au
Address: Horizon Oil Limited
134 William Street,
Level 6,
Sydney,
New South Wales, 2011,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX HZN Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK HZNF.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB HOJ Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
CHIA HZN Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
Number of employees
Current staff
Staff numbers
32
Horizon Oil employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 10:32
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2017/08/29
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.