Executive Summary
Karoon Energy Ltd operates as an oil and gas exploration company in Australia, Brazil, and Peru.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with high growth potential.
Similar Companies
Share Price & News
How has Karoon Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KAR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
10.8%
KAR
4.4%
AU Oil and Gas
0.1%
AU Market
1 Year Return
-55.8%
KAR
-48.2%
AU Oil and Gas
-22.8%
AU Market
Return vs Industry: KAR underperformed the Australian Oil and Gas industry which returned -48.2% over the past year.
Return vs Market: KAR underperformed the Australian Market which returned -22.8% over the past year.
Shareholder returns
| KAR | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.8% | 4.4% | 0.1% |
| 30 Day | -47.7% | -40.3% | -28.8% |
| 90 Day | -61.0% | -49.4% | -30.1% |
| 1 Year | -51.9%-55.8% | -46.2%-48.2% | -19.4%-22.8% |
| 3 Year | -69.5%-72.0% | -40.3%-47.6% | -9.5%-21.7% |
| 5 Year | -76.6%-78.5% | -40.0%-50.7% | 2.1%-20.8% |
Price Volatility Vs. Market
How volatile is Karoon Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
One Karoon Energy Ltd (ASX:KAR) Analyst Are Reducing Their Forecasts For Next Year1 week ago | Simply Wall St
Bruce Phillips Is The Independent Non-Executive Chairman of Karoon Energy Ltd (ASX:KAR) And They Just Spent AU$489k On Shares1 month ago | Simply Wall St
When Can We Expect A Profit From Karoon Energy Ltd (ASX:KAR)?Valuation
Is Karoon Energy undervalued compared to its fair value and its price relative to the market?
0.32x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: KAR (A$0.46) is trading above our estimate of fair value (A$0.2)
Significantly Below Fair Value: KAR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KAR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: KAR is unprofitable, so we can't compare its PE Ratio to the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate KAR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: KAR is good value based on its PB Ratio (0.3x) compared to the AU Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Karoon Energy forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
84.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KAR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).
Earnings vs Market: KAR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: KAR's is expected to become profitable in the next 3 years.
Revenue vs Market: KAR's revenue (101.8% per year) is forecast to grow faster than the Australian market (4.2% per year).
High Growth Revenue: KAR's revenue (101.8% 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 low in 3 years time (19.9%).
Next Steps
Past Performance
How has Karoon Energy performed over the past 5 years?
-47.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KAR is currently unprofitable.
Growing Profit Margin: KAR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: KAR is unprofitable, and losses have increased over the past 5 years at a rate of -47.4% per year.
Accelerating Growth: Unable to compare KAR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: KAR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-16%).
Return on Equity
High ROE: KAR has a negative Return on Equity (-4.8%), as it is currently unprofitable.
Next Steps
Financial Health
How is Karoon Energy's financial position?
Financial Position Analysis
Short Term Liabilities: KAR's short term assets (A$511.2M) exceed its short term liabilities (A$36.0M).
Long Term Liabilities: KAR's short term assets (A$511.2M) exceed its long term liabilities (A$21.1M).
Debt to Equity History and Analysis
Debt Level: KAR is debt free.
Reducing Debt: KAR had no debt 5 years ago.
Balance Sheet
Inventory Level: KAR has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if KAR's debt is covered by short term assets.
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: KAR has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if KAR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Karoon Energy's 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 payouts.
High Dividend: Unable to evaluate KAR'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 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?
9.2yrs
Average management tenure
CEO
Robert Hosking (72yo)
5.25s
Tenure
AU$1,178,318
Compensation
Mr. Robert Michael Hosking serves as the Chief Executive Officer and Managing Director of Karoon Gas Australia Ltd. Mr. Hosking is responsible for procuring PEP162 and EL4537 and managing all of the requir ...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD722.72K) is about average for companies of similar size in the Australian market ($USD591.04K).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 5.25yrs | AU$1.18m | 2.2% A$5.6m | |
| Company Secretary & CFO | 14yrs | AU$629.31k | 0.035% A$89.8k | |
| Chief Operating Officer | 9.17yrs | AU$979.36k | 0.15% A$381.7k | |
| GM of South American & CEO of Brazil | no data | AU$628.88k | 0.044% A$112.5k | |
| Engineering Manager | no data | AU$489.98k | no data |
9.2yrs
Average Tenure
Experienced Management: KAR's management team is seasoned and experienced (9.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD & Executive Director | 5.25yrs | AU$1.18m | 2.2% A$5.6m | |
| Independent Non-Executive Chairman | 1.17yrs | AU$120.27k | 0.32% A$805.0k | |
| Adviser to the Board | 0.33yr | AU$1.10m | 0.58% A$1.5m | |
| Independent Non Executive Director | 15.08yrs | AU$114.43k | 0.13% A$320.5k | |
| Non-Executive Director | 8.58yrs | AU$100.00k | no data | |
| Independent Non-Executive Director | 9.42yrs | AU$170.82k | 0.0085% A$21.7k | |
| Independent Non-Executive Director | 3.58yrs | AU$124.00k | no data | |
| Independent Non Executive Director | 5.75yrs | AU$197.78k | 0.026% A$67.3k | |
| Executive Director of Karoon Petróleo & Gas SA | no data | AU$364.56k | no data |
7.2yrs
Average Tenure
63.5yo
Average Age
Experienced Board: KAR's board of directors are considered experienced (7.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KAR 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 19%.
Top Shareholders
Company Information
Karoon Energy Ltd's company bio, 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$254.373m
- Shares outstanding: 552.98m
- Website: https://www.karoonenergy.com.au
Location
- Karoon Energy Ltd
- Riverside Quay
- Level 3/6
- Southbank
- Victoria
- 3006
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KAR | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jun 2004 |
| KRNG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2004 |
| LBL | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2004 |
| KAR | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jun 2004 |
| KRNG.Y | OTCPK (Pink Sheets LLC) | UNSPONSORED ADR | US | USD | Jul 2010 |
Biography
Karoon Energy Ltd operates as an oil and gas exploration company in Australia, Brazil, and Peru. The company has a working interest in two off-shore permits in the Browse and Carnavon basins covering a combined area of 15,492 square kilometers located to the north Western Australian coastline; and Ceduna basin covering an area of 17,793 square kilometers in the Great Australian Bight. It also has a working interest in 6 offshore blocks in the Santos basin covering an area of approximately 720 square kilometers located in the State of Santa Catarina. In addition, the company has a working interest in an off-shore block in the Tumbes basin covering an area of 4,750 square kilometers located to the north-west coast of Peru. The company was formerly known as Karoon Gas Australia Ltd and changed its name to Karoon Energy Ltd in December 2018. Karoon Energy Ltd was incorporated in 2003 and is headquartered in Southbank, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 10:31 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.