ASX:ORG

Stock Analysis Report

Executive Summary

Origin Energy Limited, an integrated energy company, engages in the exploration and production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefied natural gas in Australia and internationally.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Origin Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

ORG

0.8%

AU Oil and Gas

0.1%

AU Market


1 Year Return

8.2%

ORG

-7.2%

AU Oil and Gas

11.9%

AU Market

Return vs Industry: ORG exceeded the Australian Oil and Gas industry which returned -7.2% over the past year.

Return vs Market: ORG underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

ORGIndustryMarket
7 Day-2.7%0.8%0.1%
30 Day-0.4%-1.2%-1.1%
90 Day1.8%-1.1%-1.4%
1 Year11.9%8.2%-3.3%-7.2%18.5%11.9%
3 Year49.6%44.7%12.6%0.4%36.4%18.1%
5 Year-29.5%-44.8%-10.7%-26.9%50.9%16.7%

Price Volatility Vs. Market

How volatile is Origin Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Origin Energy undervalued compared to its fair value and its price relative to the market?

11.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORG (A$7.9) is trading above our estimate of fair value (A$2.52)

Significantly Below Fair Value: ORG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ORG is poor value based on its PE Ratio (11.5x) compared to the Oil and Gas industry average (8.9x).

PE vs Market: ORG is good value based on its PE Ratio (11.5x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: ORG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ORG is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Origin Energy forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORG's earnings are forecast to decline over the next 3 years (-4.1% per year).

Earnings vs Market: ORG's earnings are forecast to decline over the next 3 years (-4.1% per year).

High Growth Earnings: ORG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ORG's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: ORG's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORG's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Origin Energy performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORG's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: ORG's earnings growth over the past year (332.5%) exceeds its 5-year average (25.2% per year).

Earnings vs Industry: ORG earnings growth over the past year (332.5%) exceeded the Oil and Gas industry 68.1%.


Return on Equity

High ROE: ORG's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: ORG's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: ORG has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Origin Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ORG's short term assets (A$5.2B) exceeds its short term liabilities (A$4.3B)

Long Term Liabilities: ORG's short term assets (5.2B) do not cover its long term liabilities (8.3B)


Debt to Equity History and Analysis

Debt Level: ORG's debt to equity ratio (60.2%) is considered high

Reducing Debt: ORG's debt to equity ratio has reduced from 64% to 60.2% over the past 5 years.

Debt Coverage: ORG's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: ORG's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet

Inventory Level: ORG has a low level of unsold assets or inventory.

Debt Coverage by Assets: ORG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Origin Energy's current dividend yield, its reliability and sustainability?

3.80%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.4%markettop25%5.6%industryaverage4.5%forecastin3Years4.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ORG's dividend (3.8%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: ORG's dividend (3.8%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: ORG's dividend payments have been volatile in the past 10 years.

Growing Dividend: ORG's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), ORG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORG's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

What is the CEO of Origin Energy's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Frank Calabria (51yo)

3yrs

Tenure

AU$4,597,000

Compensation

Mr. Frank G. Calabria, BEc, GradDip AppFin, MBA, FCA, FFin, has been the Chief Executive Officer, Managing Director and Executive Director of Origin Energy Limited since October 19, 2016. Mr. Calabria has  ...


CEO Compensation Analysis

Compensation vs. Market: Frank's total compensation ($USD3.16M) is about average for companies of similar size in the Australian market ($USD2.82M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.8yrs

Average Tenure

Experienced Management: ORG's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: ORG's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$39,62530 Dec 18
Maxine Brenner
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares6,250
Max PriceAU$6.34
BuyAU$150,07221 Dec 18
Teresa Engelhard
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares23,821
Max PriceAU$6.30
BuyAU$716,92321 Nov 18
BlackRock, Inc.
EntityCompany
Shares105,275
Max PriceAU$6.81
BuyAU$137,65819 Nov 18
BlackRock, Inc.
EntityCompany
Shares258,719
Max PriceAU$6.95
SellAU$59,09119 Nov 18
BlackRock, Inc.
EntityCompany
Shares63,279
Max PriceAU$6.97
BuyAU$47,89314 Nov 18
BlackRock, Inc.
EntityCompany
Shares6,803
Max PriceAU$7.04
BuyAU$66,76713 Nov 18
BlackRock, Inc.
EntityCompany
Shares9,325
Max PriceAU$7.16
SellAU$138,71813 Nov 18
BlackRock, Inc.
EntityCompany
Shares19,374
Max PriceAU$7.16
BuyAU$263,30512 Nov 18
BlackRock, Inc.
EntityCompany
Shares477,063
Max PriceAU$7.23
BuyAU$29,36405 Nov 18
BlackRock, Inc.
EntityCompany
Shares1,644,945
Max PriceAU$8.59
SellAU$005 Nov 18
BlackRock, Inc.
EntityCompany
Shares1,426,406
Max PriceAU$8.48
BuyAU$73,67002 Nov 18
Teresa Engelhard
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,600
Max PriceAU$6.95

Ownership Breakdown


Management Team

  • Frank Calabria (51yo)

    MD, CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: AU$4.60m
  • Andrew Clarke

    Group General Counsel

    • Tenure: 0yrs
  • Mark Schubert

    Executive General Manager of Integrated Gas

    • Tenure: 4.4yrs
    • Compensation: AU$1.62m
  • Kylie FitzGerald

    Director of Group Communications & Investor Relations

    • Tenure: 0yrs
  • Helen Hardy

    Company Secretary

    • Tenure: 9.3yrs
  • Lawrie Tremaine

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: AU$2.97m
  • Jon Briskin

    Executive General Manager of Retail

    • Tenure: 2.8yrs
    • Compensation: AU$1.50m
  • Greg Jarvis

    Executive General Manager of Energy Supply & Operations

    • Tenure: 2.8yrs
    • Compensation: AU$1.71m
  • Tony Lucas

    Executive General Manager of Future Energy & Business Development

    • Tenure: 2.8yrs
  • Sharon Ridgway

    Executive General Manager of People & Culture

    • Tenure: 2.8yrs

Board Members

  • Gordon Cairns (68yo)

    Independent Non-Executive Chairman

    • Tenure: 6yrs
    • Compensation: AU$679.00k
  • Steve Sargent (59yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: AU$233.20k
  • John Akehurst (70yo)

    Independent Non-Executive Director

    • Tenure: 10.5yrs
    • Compensation: AU$254.20k
  • Frank Calabria (51yo)

    MD, CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: AU$4.60m
  • Scott Perkins (54yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$287.20k
  • Teresa Engelhard

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$241.20k
  • Greg Lalicker

    Independent Non-Executive Director

    • Tenure: 0.6yrs
    • Compensation: AU$61.10k
  • Maxine Brenner (57yo)

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$262.20k
  • Bruce William Morgan

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$289.20k

Company Information

Origin Energy Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Origin Energy Limited
  • Ticker: ORG
  • Exchange: ASX
  • Founded: 1946
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: AU$13.858b
  • Shares outstanding: 1.76b
  • Website: https://www.originenergy.com.au

Number of Employees


Location

  • Origin Energy Limited
  • Tower 1
  • Level 32
  • Barangaroo
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OGFG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
ORGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1980
ORLDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
ORGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1980
OGFG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

Biography

Origin Energy Limited, an integrated energy company, engages in the exploration and production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefie ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:31
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
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.