ASX:KAR

Stock Analysis Report

Executive Summary

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


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

KARIndustryMarket
7 Day10.8%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

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

NamePositionTenureCompensationOwnership
Robert Hosking
MD & Executive Director5.25yrsAU$1.18m2.2% A$5.6m
Scott Hosking
Company Secretary & CFO14yrsAU$629.31k0.035% A$89.8k
Edward Munks
Chief Operating Officer9.17yrsAU$979.36k0.15% A$381.7k
Timothy Hosking
GM of South American & CEO of Brazilno dataAU$628.88k0.044% A$112.5k
Lino Barro
Engineering Managerno dataAU$489.98kno data

9.2yrs

Average Tenure

Experienced Management: KAR's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Hosking
MD & Executive Director5.25yrsAU$1.18m2.2% A$5.6m
Bruce Phillips
Independent Non-Executive Chairman1.17yrsAU$120.27k0.32% A$805.0k
Mark Smith
Adviser to the Board0.33yrAU$1.10m0.58% A$1.5m
Geoff Atkins
Independent Non Executive Director15.08yrsAU$114.43k0.13% A$320.5k
José Barbosa
Non-Executive Director8.58yrsAU$100.00kno data
Clark A. Davey
Independent Non-Executive Director9.42yrsAU$170.82k0.0085% A$21.7k
Luciana de Freitas Rachid
Independent Non-Executive Director3.58yrsAU$124.00kno data
Peter Turnbull
Independent Non Executive Director5.75yrsAU$197.78k0.026% A$67.3k
Juliano Macedo
Executive Director of Karoon Petróleo & Gas SAno dataAU$364.56kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KARASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2004
KRNG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004
LBLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2004
KARCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2004
KRNG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 10:31
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.