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

1.2%

ASX:ORG

1.1%

AU Oil and Gas

0.5%

AU Market


1 Year Return

-7.3%

ASX:ORG

-11.4%

AU Oil and Gas

6.3%

AU Market

ORG outperformed the Oil and Gas industry which returned -11.4% over the past year.

ORG underperformed the Market in Australia which returned 6.3% over the past year.


Share holder returns

ORGIndustryMarket
7 Day1.2%1.1%0.5%
30 Day10.0%6.6%4.4%
90 Day11.7%-0.1%2.1%
1 Year-4.2%-7.3%-7.8%-11.4%12.4%6.3%
3 Year61.9%56.6%32.3%19.0%41.3%22.3%
5 Year-34.8%-48.9%-19.7%-34.1%47.8%14.7%

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 based on future cash flows and its price relative to the stock market?

11.21x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Origin Energy's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Origin Energy's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Origin Energy is overvalued based on earnings compared to the AU Oil and Gas industry average.

Origin Energy is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Origin Energy earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Origin Energy is good value based on assets compared to the AU Oil and Gas industry average.


Next Steps

Future Growth

How is Origin Energy expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

-3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Origin Energy's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Origin Energy's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Origin Energy's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Origin Energy's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Origin Energy's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Origin Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Origin Energy has delivered over 20% year on year earnings growth in the past 5 years.

Origin Energy's 1-year earnings growth exceeds its 5-year average (332.5% vs 25.2%)

Origin Energy's earnings growth has exceeded the AU Oil and Gas industry average in the past year (332.5% vs 63.2%).


Return on Equity

Origin Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Origin Energy used its assets less efficiently than the AU Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Origin Energy has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Origin Energy's financial position?


Financial Position Analysis

Origin Energy is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Origin Energy's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Origin Energy's level of debt (60.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (64% vs 60.2% today).

Debt is not well covered by operating cash flow (16.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

Low level of unsold assets.

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?

4.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Origin Energy's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Origin Energy's dividend is below the markets top 25% of dividend payers in Australia (5.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


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)

2.9yrs

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

Frank's remuneration is about average for companies of similar size in Australia.

Frank's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

The tenure for the Origin Energy management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

58yo

Average Age

The tenure for the Origin Energy board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 2.9yrs
    • Compensation: AU$4.60m
  • Andrew Clarke

    Group General Counsel

    • Tenure: 0yrs
  • Mark Schubert

    Executive General Manager of Integrated Gas

    • Tenure: 4.3yrs
    • 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: 2.2yrs
    • 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: 5.9yrs
    • Compensation: AU$679.00k
  • Steve Sargent (59yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$233.20k
  • John Akehurst (70yo)

    Independent Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: AU$254.20k
  • Frank Calabria (51yo)

    MD, CEO & Executive Director

    • Tenure: 2.9yrs
    • Compensation: AU$4.60m
  • Scott Perkins (54yo)

    Independent Non-Executive Director

    • Tenure: 4yrs
    • Compensation: AU$287.20k
  • Teresa Engelhard

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: AU$241.20k
  • Greg Lalicker

    Independent Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: AU$61.10k
  • Maxine Brenner (57yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: AU$262.20k
  • Bruce William Morgan

    Independent Non-Executive Director

    • Tenure: 6.8yrs
    • 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$13.559b
  • 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 Analysis2019/09/15 10:31
End of Day Share Price2019/09/13 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.