Horizon Oil
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.
Add to Portfolio Compare Print
HZN Share Price and Events
7 Day Returns
1 Year Returns
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.
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Horizon Oil.
| 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.
| 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.
| 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 | ||
| 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 |
| 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 |
| 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
Current Discount Checks
- 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?
| 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.
| 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?
| 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?
| 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 |
| 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.
Value checks
We assess Horizon Oil's value by looking at:- 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. )
- 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)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check) 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!
Earnings growth vs Low Risk Savings
- 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
| 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
| 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 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|
| 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.
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.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|
| 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.
Future performance checks
We assess Horizon Oil's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Horizon Oil Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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).
Past performance checks
We assess Horizon Oil's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Horizon Oil Company Filings, last reported 3 months ago.
| 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).
Financial health checks
We assess Horizon Oil's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Horizon Oil has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
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
- 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.
| 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.
| 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.
Income/ dividend checks
We assess Horizon Oil's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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
CEO
| 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:
- The average tenure for the Horizon Oil management team is less than 2 years, this suggests a new team.
Management Team
Michael Sheridan
MD, CEO & Director
$916K
0.8 yrs
Richard Beament
Chief Financial Officer
0.8 yrs
Andrew McArdle
Chief Operating Officer
1.3 yrs
Kylie Quinlivan
General Counsel & Company Secretary
3.3 yrs
Kelvin Bramley
Chief Company Representative - PNG
$148K
Kyle Keen
Assistant Company Secretary
0.4 yrs
Board of Directors Tenure
Average tenure and age of the Horizon Oil board of directors in years:
- 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
Chairman
69
0.4 yrs
Michael Sheridan
MD, CEO & Director
$916K
0.8 yrs
Gerrit de Nys
Non Executive Director
$69K
75
11.8 yrs
Sandra Birkensleigh
Non-Executive Independent Director
$69K
63
3.2 yrs
Greg Bittar
Non-Executive Director
$69K
47
2.1 yrs
Chris Hodge
Independent Non-Executive Director
66
Bruno Lorenzon
Alternate Director
2.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (A$) | 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 | ||
Management checks
We assess Horizon Oil's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 - – Full articleShould 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 - – Full articleDoes 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 - – Full articleCan 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 - – Full articleIs 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 - – Full articleDoes 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 - – Full articleHow 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 - – Full articleWhat 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 - – Full articleHow 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 - – Full articleIs 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 - – Full articleHZN 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
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.
