Beach Energy (CHIA:BPT) - Share price, News & Analysis

BPT fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

BPT Stock Overview

Beach Energy Limited operates as an oil and gas exploration and production company.

Rewards

Trading at 55.1% below our estimate of its fair value

Earnings are forecast to grow 10.88% per year

Earnings have grown 7.8% per year over the past 5 years

Risk Analysis

No risks detected for BPT from our risk checks.

Beach Energy Competitors

Woodside Energy Group

ASX:WPL

AU$28.5b

Santos

ASX:STO

AU$27.5b

Karoon Energy

ASX:KAR

AU$1.1b

Strike Energy

ASX:STX

AU$637.9m

Price History & Performance

Summary of all time highs, changes and price drops for Beach Energy
Historical stock prices
Current Share Price	AU$1.62
52 Week High	AU$1.77
52 Week Low	AU$1.01
Beta	2.05
1 Month Change	-2.12%
3 Month Change	6.08%
1 Year Change	29.46%
3 Year Change	-16.00%
5 Year Change	154.33%
Change since IPO	-5.56%

Shareholder Returns

	BPT	AU Oil and Gas	AU Market
7D	-1.2%	0.2%	1.1%
1Y	29.5%	33.9%	1.5%

Return vs Industry: BPT underperformed the Australian Oil and Gas industry which returned 33.9% over the past year.

Return vs Market: BPT exceeded the Australian Market which returned 1.5% over the past year.

Price Volatility

Is BPT's price volatile compared to industry and market?
BPT volatility
BPT Average Weekly Movement	5.5%
Oil and Gas Industry Average Movement	12.9%
Market Average Movement	9.5%
10% most volatile stocks in AU Market	16.5%
10% least volatile stocks in AU Market	4.3%

Stable Share Price: BPT is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BPT's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1961	n/a	Morne Engelbrecht	https://www.beachenergy.com.au

Beach Energy Limited operates as an oil and gas exploration and production company. The company engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. It also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons.

Beach Energy Fundamentals Summary

How do Beach Energy's earnings and revenue compare to its market cap?
BPT fundamental statistics
Market Cap	AU$3.67b
Earnings (TTM)	AU$401.00m
Revenue (TTM)	AU$1.63b

9.2x

P/E Ratio

2.2x

P/S Ratio

Is BPT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BPT income statement (TTM)
Revenue	AU$1.63b
Cost of Revenue	AU$950.10m
Gross Profit	AU$683.00m
Other Expenses	AU$282.00m
Earnings	AU$401.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 15, 2022

Earnings per share (EPS)	0.18
Gross Margin	41.82%
Net Profit Margin	24.55%
Debt/Equity Ratio	4.2%

How did BPT perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

11%

Payout Ratio

Valuation

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

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BPT (A$1.62) is trading below our estimate of fair value (A$3.6)

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

Price To Earnings Ratio

PE vs Industry: BPT is good value based on its PE Ratio (9.2x) compared to the Australian Oil and Gas industry average (10.5x).

PE vs Market: BPT is good value based on its PE Ratio (9.2x) compared to the Australian market (16.2x).

Price to Earnings Growth Ratio

PEG Ratio: BPT is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: BPT is good value based on its PB Ratio (1.1x) compared to the AU Oil and Gas industry average (2.1x).

Future Growth

How is Beach Energy forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPT's forecast earnings growth (10.9% per year) is above the savings rate (1.8%).

Earnings vs Market: BPT's earnings (10.9% per year) are forecast to grow faster than the Australian market (6.2% per year).

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

Revenue vs Market: BPT's revenue (10% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: BPT's revenue (10% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BPT's Return on Equity is forecast to be low in 3 years time (14.1%).

Past Performance

How has Beach Energy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

7.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BPT has high quality earnings.

Growing Profit Margin: BPT's current net profit margins (24.6%) are higher than last year (23.2%).

Past Earnings Growth Analysis

Earnings Trend: BPT's earnings have grown by 7.8% per year over the past 5 years.

Accelerating Growth: BPT's earnings growth over the past year (14.9%) exceeds its 5-year average (7.8% per year).

Earnings vs Industry: BPT earnings growth over the past year (14.9%) underperformed the Oil and Gas industry 299.7%.

Return on Equity

High ROE: BPT's Return on Equity (12.2%) is considered low.

Financial Health

How is Beach Energy's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BPT's short term assets (A$652.7M) exceed its short term liabilities (A$425.9M).

Long Term Liabilities: BPT's short term assets (A$652.7M) do not cover its long term liabilities (A$1.2B).

Debt to Equity History and Analysis

Debt Level: BPT has more cash than its total debt.

Reducing Debt: BPT's debt to equity ratio has reduced from 13% to 4.2% over the past 5 years.

Debt Coverage: BPT's debt is well covered by operating cash flow (781.7%).

Interest Coverage: BPT earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BPT's dividend (1.24%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.55%).

High Dividend: BPT's dividend (1.24%) is low compared to the top 25% of dividend payers in the Australian market (6.11%).

Stability and Growth of Payments

Stable Dividend: BPT is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

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

Earnings Payout to Shareholders

Earnings Coverage: BPT is not paying a notable dividend for the Australian market.

Cash Payout to Shareholders

Cash Flow Coverage: BPT is not paying a notable dividend for the Australian market.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

Morne Engelbrecht

0.50

Tenure

AU$839,404

Compensation

Mr. Morne Engelbrecht, BCom (Hons), CA(ANZ &SA), MAICD, served as Acting Chief Executive Officer at Beach Energy Limited since November 02, 2021 until May 19, 2022 and serves as its Chief Executive Office...

CEO Compensation Analysis

Compensation vs Market: Morne's total compensation ($USD589.84K) is below average for companies of similar size in the Australian market ($USD1.99M).

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

Leadership Team

Experienced Management: BPT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: BPT's board of directors are considered experienced (4.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/22 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30