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HZN

Horizon OilASX:HZN Stock Report

Market Cap

AU$135.8m

7D

-2.2%

1Y

33.8%

Updated

03 Dec, 2021

Data

Company Financials
HZN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends2/6

HZN Stock Overview

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

Horizon Oil Competitors

Woodside Petroleum

ASX:WPL

AU$20.5b

Santos

ASX:STO

AU$13.0b

Oil Search

ASX:OSH

AU$8.0b

Beach Energy

ASX:BPT

AU$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Horizon Oil
Historical stock prices
Current Share PriceAU$0.087
52 Week HighAU$0.13
52 Week LowAU$0.06
Beta1.54
1 Month Change-6.45%
3 Month Change1.16%
1 Year Change33.85%
3 Year Change-24.35%
5 Year Change102.33%
Change since IPO-76.36%

Recent News & Updates

Sep 01
Horizon Oil Limited's (ASX:HZN) 29% Dip In Price Shows Sentiment Is Matching Earnings

Horizon Oil Limited's (ASX:HZN) 29% Dip In Price Shows Sentiment Is Matching Earnings

Horizon Oil Limited ( ASX:HZN ) shareholders won't be pleased to see that the share price has had a very rough month...

Shareholder Returns

HZNAU Oil and GasAU Market
7D-2.2%-2.7%-0.7%
1Y33.8%4.6%9.8%

Return vs Industry: HZN exceeded the Australian Oil and Gas industry which returned 4.6% over the past year.

Return vs Market: HZN exceeded the Australian Market which returned 9.8% over the past year.

Price Volatility

Is HZN's price volatile compared to industry and market?
HZN volatility
HZN Average Weekly Movement5.5%
Oil and Gas Industry Average Movement12.5%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.7%
10% least volatile stocks in AU Market3.7%

Stable Share Price: HZN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HZN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196916Chris Hodgehttps://www.horizonoil.com.au

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; and Maari/Manaia oil fields in New Zealand, as well as engages in the exploration and evaluation of hydrocarbons. The company was incorporated in 1969 and is based in Sydney, Australia.

Horizon Oil Fundamentals Summary

How do Horizon Oil's earnings and revenue compare to its market cap?
HZN fundamental statistics
Market CapUS$96.45m
Earnings (TTM)US$4.86m
Revenue (TTM)US$63.57m

20.1x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HZN income statement (TTM)
RevenueUS$63.57m
Cost of RevenueUS$47.13m
Gross ProfitUS$16.45m
ExpensesUS$11.58m
EarningsUS$4.86m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0031
Gross Margin25.87%
Net Profit Margin7.65%
Debt/Equity Ratio11.0%

How did HZN perform over the long term?

See historical performance and comparison

Dividends

34.4%

Current Dividend Yield

612%

Payout Ratio

Valuation

Is Horizon Oil undervalued compared to its fair value and its price relative to the market?

6.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HZN (A$0.09) is trading below our estimate of fair value (A$0.09)

Significantly Below Fair Value: HZN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HZN is good value based on its PE Ratio (20.1x) compared to the Australian Oil and Gas industry average (26.5x).

PE vs Market: HZN is poor value based on its PE Ratio (20.1x) 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 (0.9x) compared to the AU Oil and Gas industry average (2.3x).


Future Growth

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

11.7%

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.


Past Performance

How has Horizon Oil performed over the past 5 years?

50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HZN has high quality earnings.

Growing Profit Margin: HZN's current net profit margins (7.6%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: HZN has become profitable over the past 5 years, growing earnings by 50.1% per year.

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

Earnings vs Industry: HZN had negative earnings growth (-70.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-50.5%).


Return on Equity

High ROE: HZN's Return on Equity (4.4%) is considered low.


Financial Health

How is Horizon Oil's financial position?


Financial Position Analysis

Short Term Liabilities: HZN's short term assets ($65.3M) exceed its short term liabilities ($29.1M).

Long Term Liabilities: HZN's short term assets ($65.3M) exceed its long term liabilities ($47.4M).


Debt to Equity History and Analysis

Debt Level: HZN has more cash than its total debt.

Reducing Debt: HZN's debt to equity ratio has reduced from 138% to 11% over the past 5 years.

Debt Coverage: HZN's debt is well covered by operating cash flow (190.9%).

Interest Coverage: HZN's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

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

34.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HZN's dividend (34.44%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: HZN's dividend (34.44%) is in the top 25% of dividend payers in the Australian market (5.58%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether HZN's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if HZN's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (611.7%), HZN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Chris Hodge (69 yo)

1.83yrs

Tenure

US$682,966

Compensation

Mr. Christopher C. Hodge, also known as Chris, B.Sc., M.Sc., DIC, F.Fin, MAICD, serves as Chief Executive Officer of Horizon Oil Limited since May 2020. Mr. Hodge serves as Managing Director of Horizon Oil...


CEO Compensation Analysis

Compensation vs Market: Chris's total compensation ($USD682.97K) is above average for companies of similar size in the Australian market ($USD291.30K).

Compensation vs Earnings: Chris's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: HZN's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HZN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.1%.


Top Shareholders

Company Information

Horizon Oil Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Horizon Oil Limited
  • Ticker: HZN
  • Exchange: ASX
  • Founded: 1969
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$135.789m
  • Shares outstanding: 1.58b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 07:02
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.