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KAR

Karoon EnergyASX:KAR Stock Report

Market Cap

AU$901.0m

7D

1.5%

1Y

100.0%

Updated

18 Oct, 2021

Data

Company Financials +
KAR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance2/6
Financial Health5/6
Dividends0/6

KAR Overview

Karoon Energy Ltd operates as an oil and gas exploration and production company in Australia, Brazil, and Peru.

Karoon Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Karoon Energy
Historical stock prices
Current Share PriceAU$1.68
52 Week HighAU$0.74
52 Week LowAU$1.70
Beta1.56
1 Month Change14.68%
3 Month Change36.03%
1 Year Change100.00%
3 Year Change48.67%
5 Year Change-27.27%
Change since IPO888.24%

Recent News & Updates

Sep 26
Karoon Energy's (ASX:KAR) Profits Appear To Have Quality Issues

Karoon Energy's (ASX:KAR) Profits Appear To Have Quality Issues

The stock price didn't jump after Karoon Energy Ltd ( ASX:KAR ) posted decent earnings last week. We think that...

Shareholder Returns

KARAU Oil and GasAU Market
7D1.5%0.5%0.9%
1Y100.0%48.9%20.2%

Return vs Industry: KAR exceeded the Australian Oil and Gas industry which returned 48.9% over the past year.

Return vs Market: KAR exceeded the Australian Market which returned 20.2% over the past year.

Price Volatility

Is KAR's price volatile compared to industry and market?
KAR volatility
KAR Beta1.56
Industry Beta1.28
Market Beta1

Stable Share Price: KAR is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: KAR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2003n/aJulian Fowleshttps://www.karoonenergy.com.au

Karoon Energy Ltd operates as an oil and gas exploration and production company in Australia, Brazil, and Peru. The company holds 100% interest in the Santos Basin consisting of 4 off-shore blocks located in the State of Sáo Paulo, Brazil; 50% interest in the Carnarvon Basin covering an area of area of approximately 6,748 square kilometers located in the north Western Australia; and 75% interest in the Tumbes Basin covering an area of approximately 4,875 square kilometers located in northern Peru. The company was formerly known as Karoon Gas Australia Ltd and changed its name to Karoon Energy Ltd in December 2018.

Karoon Energy Fundamentals Summary

How do Karoon Energy's earnings and revenue compare to its market cap?
KAR fundamental statistics
Market CapUS$668.71m
Earnings (TTM)US$4.38m
Revenue (TTM)US$170.81m

157.8x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KAR income statement (TTM)
RevenueUS$170.81m
Cost of RevenueUS$111.95m
Gross ProfitUS$58.86m
ExpensesUS$54.47m
EarningsUS$4.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0079
Gross Margin34.46%
Net Profit Margin2.57%
Debt/Equity Ratio0%

How did KAR perform over the long term?

See historical performance and comparison

Valuation

Is Karoon Energy 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: KAR (A$1.68) is trading below our estimate of fair value (A$28.99)

Significantly Below Fair Value: KAR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KAR is poor value based on its PE Ratio (157.8x) compared to the Australian Oil and Gas industry average (29.3x).

PE vs Market: KAR is poor value based on its PE Ratio (157.8x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: KAR is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: KAR is good value based on its PB Ratio (1.8x) compared to the AU Oil and Gas industry average (2.5x).


Future Growth

How is Karoon Energy forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

64.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAR's forecast earnings growth (64.6% per year) is above the savings rate (1.9%).

Earnings vs Market: KAR's earnings (64.6% per year) are forecast to grow faster than the Australian market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KAR's revenue (37.4% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: KAR's revenue (37.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KAR's Return on Equity is forecast to be high in 3 years time (27.1%)


Past Performance

How has Karoon Energy performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAR has a high level of non-cash earnings.

Growing Profit Margin: KAR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KAR has become profitable over the past 5 years, growing earnings by 8.1% per year.

Accelerating Growth: KAR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: KAR's Return on Equity (1.2%) is considered low.


Financial Health

How is Karoon Energy's financial position?


Financial Position Analysis

Short Term Liabilities: KAR's short term assets ($183.8M) exceed its short term liabilities ($130.3M).

Long Term Liabilities: KAR's short term assets ($183.8M) do not cover its long term liabilities ($503.4M).


Debt to Equity History and Analysis

Debt Level: KAR is debt free.

Reducing Debt: KAR has not had any debt for past 5 years.

Debt Coverage: KAR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KAR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Karoon Energy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KAR'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 KAR'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?

0.8yrs

Average management tenure


CEO

Julian Fowles

0.92

Tenure

US$728,682

Compensation

Dr. Julian David Fowles, PhD BSc(Hons) GDipAFI GAICD has been Managing Director, Chief Executive Officer & Director of Karoon Energy Ltd since November 27, 2020. He served as Independent Non-Executive Dire...


CEO Compensation Analysis

Compensation vs Market: Julian's total compensation ($USD728.68K) is about average for companies of similar size in the Australian market ($USD998.78K).

Compensation vs Earnings: Insufficient data to compare Julian's compensation with company performance.


Leadership Team

Experienced Management: KAR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: KAR's board of directors are not considered experienced ( 1.9 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

Karoon Energy Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Karoon Energy Ltd
  • Ticker: KAR
  • Exchange: ASX
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$900.959m
  • Shares outstanding: 554.44m
  • Website: https://www.karoonenergy.com.au

Location

  • Karoon Energy Ltd
  • 6 Riverside Quay
  • Level 3
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 07:04
End of Day Share Price2021/10/18 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.