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OSH

Oil SearchASX:OSH Stock Report

Last Price

AU$4.04

Market Cap

AU$8.4b

7D

-1.7%

1Y

10.4%

Updated

14 Dec, 2021

Data

Company Financials +
OSH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends0/6

OSH Stock Overview

Oil Search Limited explores for, develops, and produces oil and gas properties primarily in Papua New Guinea, the United States, and Australia.

Rewards

Earnings are forecast to grow 2% per year

Became profitable this year

Risk Analysis

No risks detected for OSH from our risk checks.

Oil Search Competitors

Woodside Petroleum

ASX:WPL

AU$24.5b

Santos

ASX:STO

AU$23.9b

Beach Energy

ASX:BPT

AU$3.3b

Karoon Energy

ASX:KAR

AU$1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Oil Search
Historical stock prices
Current Share PriceAU$4.04
52 Week HighAU$4.69
52 Week LowAU$3.43
Beta2.08
1 Month Change-5.83%
3 Month Change5.76%
1 Year Change10.38%
3 Year Change-42.61%
5 Year Change-40.68%
Change since IPO431.58%

Recent News & Updates

Oct 08
Returns Are Gaining Momentum At Oil Search (ASX:OSH)

Returns Are Gaining Momentum At Oil Search (ASX:OSH)

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'll want to see a...

Shareholder Returns

OSHAU Oil and GasAU Market
7D-1.7%-1.2%-2.8%
1Y10.4%4.8%5.8%

Return vs Industry: OSH exceeded the Australian Oil and Gas industry which returned 7.4% over the past year.

Return vs Market: OSH underperformed the Australian Market which returned 12.3% over the past year.

Price Volatility

Is OSH's price volatile compared to industry and market?
OSH volatility
OSH Average Weekly Movement4.6%
Oil and Gas Industry Average Movement10.7%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.4%
10% least volatile stocks in AU Market3.7%

Stable Share Price: OSH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OSH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19291,243Peter Fredricsonhttps://www.oilsearch.com

Oil Search Limited explores for, develops, and produces oil and gas properties primarily in Papua New Guinea, the United States, and Australia. It operates through PNG Business Unit and Alaska Business Unit segments. The company is involved in the exploration, development, production, and sale of hydrocarbons, liquefied natural gas, crude oil, natural gas, condensate, naphtha, and other refined products; and power generation activities.

Oil Search Fundamentals Summary

How do Oil Search's earnings and revenue compare to its market cap?
OSH fundamental statistics
Market CapUS$5.98b
Earnings (TTM)US$84.51m
Revenue (TTM)US$1.12b

70.7x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OSH income statement (TTM)
RevenueUS$1.12b
Cost of RevenueUS$719.92m
Gross ProfitUS$396.33m
ExpensesUS$311.82m
EarningsUS$84.51m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.041
Gross Margin35.50%
Net Profit Margin7.57%
Debt/Equity Ratio46.2%

How did OSH perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

93%

Payout Ratio

Valuation

Is Oil Search undervalued compared to its fair value and its price relative to the market?

70.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OSH (A$4.04) is trading above our estimate of fair value (A$1.98)

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


Price To Earnings Ratio

PE vs Industry: OSH is poor value based on its PE Ratio (70.7x) compared to the Australian Oil and Gas industry average (28.8x).

PE vs Market: OSH is poor value based on its PE Ratio (70.7x) compared to the Australian market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: OSH is poor value based on its PEG Ratio (35.4x)


Price to Book Ratio

PB vs Industry: OSH is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (2.4x).


Future Growth

How is Oil Search forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSH's forecast earnings growth (2% per year) is above the savings rate (1.9%).

Earnings vs Market: OSH's earnings (2% per year) are forecast to grow slower than the Australian market (11.6% per year).

High Growth Earnings: OSH's earnings are forecast to grow, but not significantly.

Revenue vs Market: OSH's revenue (1.9% per year) is forecast to grow slower than the Australian market (5.3% per year).

High Growth Revenue: OSH's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OSH's Return on Equity is forecast to be low in 3 years time (6.9%).


Past Performance

How has Oil Search performed over the past 5 years?

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSH has high quality earnings.

Growing Profit Margin: OSH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: OSH has become profitable over the past 5 years, growing earnings by -10.7% per year.

Accelerating Growth: OSH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OSH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-50.5%).


Return on Equity

High ROE: OSH's Return on Equity (1.5%) is considered low.


Financial Health

How is Oil Search's financial position?


Financial Position Analysis

Short Term Liabilities: OSH's short term assets ($842.6M) exceed its short term liabilities ($707.2M).

Long Term Liabilities: OSH's short term assets ($842.6M) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: OSH's net debt to equity ratio (37.3%) is considered satisfactory.

Reducing Debt: OSH's debt to equity ratio has reduced from 87.8% to 46.2% over the past 5 years.

Debt Coverage: OSH's debt is not well covered by operating cash flow (16.8%).

Interest Coverage: OSH's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

What is Oil Search current dividend yield, its reliability and sustainability?

1.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OSH's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.26%).

High Dividend: OSH's dividend (1.15%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


Stability and Growth of Payments

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

Growing Dividend: OSH is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OSH is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OSH'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?

2.0yrs

Average management tenure


CEO

Peter Fredricson

0.75

Tenure

Mr. Peter J. Fredricson, BCom, CA, GAICD, serves as Acting Chief Executive Officer at Oil Search Limited since July 19, 2021 and serves as its Chief Financial Officer since March 23, 2021. Mr. Fredricson w...


Leadership Team

Experienced Management: OSH's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

Experienced Board: OSH's board of directors are considered experienced (4.9 years average tenure).


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

Oil Search Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Oil Search Limited
  • Ticker: OSH
  • Exchange: ASX
  • Founded: 1929
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: AU$8.395b
  • Shares outstanding: 2.08b
  • Website: https://www.oilsearch.com

Number of Employees


Location

  • Oil Search Limited
  • Harbourside East Building
  • Ground Floor
  • Port Moresby
  • Papua New Guinea

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/14 07:04
End of Day Share Price2021/12/10 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.