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OEL

Otto EnergyASX:OEL Stock Report

Market Cap

AU$71.9m

7D

25.0%

1Y

50.0%

Updated

25 Oct, 2021

Data

Company Financials
OEL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

OEL Overview

Otto Energy Limited, together with its subsidiaries, operates as an oil and gas exploration and production company in North America.

Otto Energy Competitors

Beach Energy

ASX:BPT

AU$3.1b

Karoon Energy

ASX:KAR

AU$914.8m

Senex Energy

ASX:SXY

AU$837.0m

Carnarvon Petroleum

ASX:CVN

AU$500.9m

Price History & Performance

Summary of all time highs, changes and price drops for Otto Energy
Historical stock prices
Current Share PriceAU$0.015
52 Week HighAU$0.008
52 Week LowAU$0.018
Beta1.99
1 Month Change57.90%
3 Month Change66.67%
1 Year Change50.00%
3 Year Change-70.59%
5 Year Change-65.12%
Change since IPO-91.89%

Recent News & Updates

Sep 29
Is Otto Energy (ASX:OEL) Using Too Much Debt?

Is Otto Energy (ASX:OEL) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Mar 01
Are Insiders Buying Otto Energy Limited (ASX:OEL) Stock?

Are Insiders Buying Otto Energy Limited (ASX:OEL) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...

Shareholder Returns

OELAU Oil and GasAU Market
7D25.0%-4.1%0.6%
1Y50.0%41.3%21.3%

Return vs Industry: OEL exceeded the Australian Oil and Gas industry which returned 41.3% over the past year.

Return vs Market: OEL exceeded the Australian Market which returned 21.3% over the past year.

Price Volatility

Is OEL's price volatile compared to industry and market?
OEL volatility
OEL Beta1.99
Industry Beta1.29
Market Beta1

Stable Share Price: OEL is more volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: OEL's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of Australian stocks.

About the Company

FoundedEmployeesCEOWebsite
200412Mike Utslerhttps://www.ottoenergy.com

Otto Energy Limited, together with its subsidiaries, operates as an oil and gas exploration and production company in North America. The company’s principal projects include its 50% interest in the South Marsh Island 71 project. Its projects portfolio also comprises 37.5% working interest in Lightning, Matagorda County Texas; and Green Canyon 21 lease in the Gulf Mexico.

Otto Energy Fundamentals Summary

How do Otto Energy's earnings and revenue compare to its market cap?
OEL fundamental statistics
Market CapUS$53.92m
Earnings (TTM)-US$4.64m
Revenue (TTM)US$30.14m

1.8x

P/S Ratio

-11.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OEL income statement (TTM)
RevenueUS$30.14m
Cost of RevenueUS$10.20m
Gross ProfitUS$19.94m
ExpensesUS$24.58m
Earnings-US$4.64m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.00096
Gross Margin66.16%
Net Profit Margin-15.39%
Debt/Equity Ratio25.4%

How did OEL perform over the long term?

See historical performance and comparison

Valuation

Is Otto 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: OEL (A$0.02) is trading below our estimate of fair value (A$0.06)

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


Price To Earnings Ratio

PE vs Industry: OEL is unprofitable, so we can't compare its PE Ratio to the Australian Oil and Gas industry average.

PE vs Market: OEL 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 OEL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OEL is good value based on its PB Ratio (1.3x) compared to the AU Oil and Gas industry average (2.6x).


Future Growth

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

7.5%

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 Otto Energy 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 Otto Energy performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OEL is currently unprofitable.

Growing Profit Margin: OEL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OEL is unprofitable, but has reduced losses over the past 5 years at a rate of 9.9% per year.

Accelerating Growth: Unable to compare OEL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OEL is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: OEL has a negative Return on Equity (-11.62%), as it is currently unprofitable.


Financial Health

How is Otto Energy's financial position?


Financial Position Analysis

Short Term Liabilities: OEL's short term assets ($23.6M) exceed its short term liabilities ($14.7M).

Long Term Liabilities: OEL's short term assets ($23.6M) exceed its long term liabilities ($6.7M).


Debt to Equity History and Analysis

Debt Level: OEL's debt to equity ratio (25.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OEL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: Whilst unprofitable OEL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OEL is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 7.4% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate OEL'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 OEL's dividends per share have been stable in the past.

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

2.1yrs

Average management tenure


CEO

Mike Utsler (64 yo)

1.08yrs

Tenure

US$345,837

Compensation

Mr. Michael J. Utsler, also known as Mike, BSc (Petroleum Engineering), serves as Independent Non-Executive Director at Oil Search Limited since April 30, 2021. He serves as Chief Executive Officer, Managi...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD345.84K) is about average for companies of similar size in the Australian market ($USD302.38K).

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


Leadership Team

Experienced Management: OEL's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: OEL's board of directors are not considered experienced ( 2.4 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

Otto Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Otto Energy Limited
  • Ticker: OEL
  • Exchange: ASX
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: AU$71.925m
  • Shares outstanding: 4.80b
  • Website: https://www.ottoenergy.com

Number of Employees


Location

  • Otto Energy Limited
  • Ground Floor 70 Hindmarsh Square
  • Adelaide
  • South Australia
  • 5000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:47
End of Day Share Price2021/10/25 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.