ASX:ORG

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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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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

Stable Share Price: ORG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.6%

ORG

-4.3%

AU Oil and Gas

-2.4%

AU Market


1 Year Return

-48.9%

ORG

-40.6%

AU Oil and Gas

-8.3%

AU Market

Return vs Industry: ORG underperformed the Australian Oil and Gas industry which returned -40.3% over the past year.

Return vs Market: ORG underperformed the Australian Market which returned -8.9% over the past year.


Shareholder returns

ORGIndustryMarket
7 Day-7.6%-4.3%-2.4%
30 Day-11.1%-2.9%1.8%
90 Day-25.1%-9.1%1.7%
1 Year-46.7%-48.9%-38.2%-40.6%-5.0%-8.3%
3 Year-46.6%-50.5%-28.3%-35.8%14.6%-0.08%
5 Year-18.6%-26.2%-21.5%-33.6%41.6%12.1%

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?

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORG (A$4.2) is trading below our estimate of fair value (A$6.3)

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


Price To Earnings Ratio

PE vs Industry: ORG is poor value based on its PE Ratio (89.1x) compared to the AU Oil and Gas industry average (16.3x).

PE vs Market: ORG is poor value based on its PE Ratio (89.1x) compared to the Australian market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: ORG is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ORG is good value based on its PB Ratio (0.6x) compared to the AU Oil and Gas industry average (1.5x).


Next Steps

Future Growth

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

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORG's forecast earnings growth (29.4% per year) is above the savings rate (2.3%).

Earnings vs Market: ORG's earnings (29.4% per year) are forecast to grow faster than the Australian market (17.7% per year).

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

Revenue vs Market: ORG's revenue (0.2% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: ORG's revenue (0.2% per year) is forecast to grow slower than 20% 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 (4.8%).


Next Steps

Past Performance

How has Origin Energy performed over the past 5 years?

48.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORG has a large one-off loss of A$763.0M impacting its June 30 2020 financial results.

Growing Profit Margin: ORG's current net profit margins (0.6%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: ORG has become profitable over the past 5 years, growing earnings by 48.4% per year.

Accelerating Growth: ORG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORG had negative earnings growth (-93.1%) over the past year, making it difficult to compare to the Oil and Gas industry average (-44.9%).


Return on Equity

High ROE: ORG's Return on Equity (0.7%) is considered low.


Next Steps

Financial Health

How is Origin Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ORG's short term assets (A$4.7B) exceed its short term liabilities (A$4.6B).

Long Term Liabilities: ORG's short term assets (A$4.7B) do not cover its long term liabilities (A$7.8B).


Debt to Equity History and Analysis

Debt Level: ORG's debt to equity ratio (51.8%) is considered high.

Reducing Debt: ORG's debt to equity ratio has reduced from 86.2% to 51.8% over the past 5 years.

Debt Coverage: ORG's debt is not well covered by operating cash flow (14.4%).

Interest Coverage: ORG's interest payments on its debt are not well covered by EBIT (0.4x coverage).


Balance Sheet


Next Steps

Dividend

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

6.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORG's dividend (5.95%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: ORG's dividend (5.95%) is in the top 25% of dividend payers in the Australian market (5.49%)


Stability and Growth of Payments

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 high payout ratio (530.1%), ORG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORG's dividends in 3 years are forecast to be covered by earnings (69.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Frank Calabria (52 yo)

4yrs

Tenure

AU$5,087,000

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 ($USD3.63M) is above average for companies of similar size in the Australian market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank Calabria
MD, CEO & Executive Director4yrsAU$5.09m0.043%
A$ 3.2m
Lawrence Tremaine
Chief Financial Officer3.33yrsAU$2.91m0.022%
A$ 1.6m
Greg Jarvis
Executive General Manager of Energy Supply & Operations3.83yrsAU$2.30m0.015%
A$ 1.1m
Jon Briskin
Executive General Manager of Retail3.83yrsAU$1.98m0.0082%
A$ 607.7k
Mark Schubert
Executive General Manager of Integrated Gas5.42yrsAU$2.27m0.0078%
A$ 577.4k
Kylie FitzGerald
Director of Group Communications & Investor Relationsno datano datano data
Kate Jordan
General Counsel and Executive GM of Company Secretariat0.58yrno datano data
Anthony Lucas
Executive General Manager of Future Energy & Business Development3.83yrsno datano data
Sharon Ridgway
Executive General Manager of People & Culture3.83yrsno datano data
Helen Hardy
Company Secretary10.33yrsno datano data
Frédéric de Rougemont
Chief Executive Officer of USG Boral Building Products6.58yrsno datano data
Liam Barry
Group Manager of Investor Relationsno datano datano data

3.8yrs

Average Tenure

Experienced Management: ORG's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Calabria
MD, CEO & Executive Director4yrsAU$5.09m0.043%
A$ 3.2m
Steven Sargent
Independent Non-Executive Director5.42yrsAU$265.20k0.0018%
A$ 132.2k
Joan Withers
Independent Non-Executive Directorno datano datano data
John Akehurst
Independent Non-Executive Director11.5yrsAU$266.20k0.0040%
A$ 299.0k
Scott Perkins
Independent Non-Executive Chairmanno dataAU$313.00k0.0032%
A$ 235.5k
Greg Lalicker
Independent Non-Executive Director1.58yrsAU$196.20k0.0057%
A$ 420.1k
Maxine Brenner
Independent Non-Executive Director6.92yrsAU$272.20k0.0016%
A$ 118.9k
Bruce William Morgan
Independent Non-Executive Director7.92yrsAU$300.20k0.0027%
A$ 197.9k

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: ORG's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ORG 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

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$7.384b
  • 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 Analysis2020/10/29 10:38
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.