ASX:OXX

Stock Analysis Report

Executive Summary

Octanex Limited, together with its subsidiaries, engages in the investment, exploration, and development of petroleum in Western Australia.

Risk Analysis

Earnings have declined by -11.9% per year over past 5 years

Shares are highly illiquid

Does not have a meaningful market cap (A$2M)

Currently unprofitable and not forecast to become profitable over the next 3 years



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

OXX

-1.1%

AU Oil and Gas

0.1%

AU Market


1 Year Return

-30.0%

OXX

6.0%

AU Oil and Gas

19.5%

AU Market

Return vs Industry: OXX underperformed the Australian Oil and Gas industry which returned 11.1% over the past year.

Return vs Market: OXX underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

OXXIndustryMarket
7 Day0%-1.1%0.1%
30 Day0%1.8%4.0%
90 Dayn/a5.8%4.8%
1 Year-30.0%-30.0%10.6%6.0%24.9%19.5%
3 Year-86.0%-86.0%14.8%2.7%39.7%20.9%
5 Year-88.3%-88.3%19.5%-1.3%59.0%23.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OXX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OXX's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: OXX is good value based on its PB Ratio (0.2x) compared to the AU Oil and Gas industry average (1.4x).


Next Steps

Future Growth

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

7.4%

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 Octanex 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.


Next Steps

Past Performance

How has Octanex performed over the past 5 years?

-11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OXX is currently unprofitable.

Growing Profit Margin: OXX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OXX is unprofitable, and losses have increased over the past 5 years at a rate of -11.9% per year.

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

Earnings vs Industry: OXX is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (68.1%).


Return on Equity

High ROE: OXX has a negative Return on Equity (-39.58%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Octanex's financial position?


Financial Position Analysis

Short Term Liabilities: OXX's short term assets (A$1.9M) exceed its short term liabilities (A$524.6K).

Long Term Liabilities: OXX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: OXX is debt free.

Reducing Debt: OXX has no debt compared to 5 years ago when its debt to equity ratio was 0.2%.


Balance Sheet

Inventory Level: OXX has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if OXX's debt is covered by short term assets.


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: OXX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: OXX has sufficient cash runway for 1.5 years if free cash flow continues to grow at historical rates of 12.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate OXX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OXX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OXX'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 OXX's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.3yrs

Average board tenure


CEO

Geoff Albers (74yo)

0yrs

Tenure

0

Mr. Ernest Geoffrey Albers, also known as Geoff, LLB, FAICD, FAIM, is the Founder of Octanex NL and serves as its Chief Executive Officer, Executive Chairman. Mr. Albers has been the President and a Treasu ...


Board Age and Tenure

5.3yrs

Average Tenure

Experienced Board: OXX's board of directors are considered experienced (5.3 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$73820 Mar 19
Ernest Albers
EntityIndividual
Role
Chief Executive Officer
Founder
Shares92,606
Max PriceAU$0.008
BuyAU$39101 Mar 19
Ernest Albers
EntityIndividual
Role
Chief Executive Officer
Founder
Shares48,889
Max PriceAU$0.008
BuyAU$40305 Feb 19
Ernest Albers
EntityIndividual
Role
Chief Executive Officer
Founder
Shares44,800
Max PriceAU$0.009

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Geoff Albers (74yo)

    Founder

    • Rob Wright

      CFO & Company Secretary

      • Rae Clark

        COO & Executive Director

        • Tenure: 5.3yrs
        • Compensation: AU$227.07k
      • Simon Sturrock

        Consultant Geophysicist & Exploration Manager


        Board Members

        • Geoff Albers (74yo)

          Founder

          • Kow Kevin (71yo)

            Non-Executive Director

            • Tenure: 5.1yrs
          • James Max Willis

            Independent Non-Executive Director

            • Tenure: 10.4yrs
          • Rae Clark

            COO & Executive Director

            • Tenure: 5.3yrs
            • Compensation: AU$227.07k

          Company Information

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


          Key Information

          • Name: Octanex Limited
          • Ticker: OXX
          • Exchange: ASX
          • Founded: 1980
          • Industry: Oil and Gas Exploration and Production
          • Sector: Energy
          • Market Cap: AU$1.700m
          • Shares outstanding: 242.82m
          • Website: https://www.octanex.com.au

          Location

          • Octanex Limited
          • 500 Collins Street
          • Level 21
          • Melbourne
          • Victoria
          • 3000
          • Australia

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          OXXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2009
          OXXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2009

          Biography

          Octanex Limited, together with its subsidiaries, engages in the investment, exploration, and development of petroleum in Western Australia. It holds interest in the Ascalon Gas field with two exploration permits in Bonaparte basin located in Western Australia. Octanex Limited was incorporated in 1980 and is based in Melbourne, Australia. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 10:30
          End of Day Share Price2020/01/21 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.