ORG

Origin EnergyASX:ORG Stock Report

Market Cap

AU$7.7b

7D

-1.6%

1Y

-3.1%

Updated

18 Sep, 2021

Data

Company Financials +
ORG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends2/6

ORG Overview

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.

Origin Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Origin Energy
Historical stock prices
Current Share PriceAU$4.39
52 Week HighAU$3.87
52 Week LowAU$5.38
Beta1.6
1 Month Change4.77%
3 Month Change-9.86%
1 Year Change-3.09%
3 Year Change-44.85%
5 Year Change-15.58%
Change since IPO-41.93%

Recent News & Updates

Jun 14
Does Origin Energy (ASX:ORG) Have A Healthy Balance Sheet?

Does Origin Energy (ASX:ORG) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ORGAU Electric UtilitiesAU Market
7D-1.6%0.8%-0.02%
1Y-3.1%21.2%27.0%

Return vs Industry: ORG underperformed the Australian Electric Utilities industry which returned 21.2% over the past year.

Return vs Market: ORG underperformed the Australian Market which returned 27% over the past year.

Price Volatility

Is ORG's price volatile compared to industry and market?
ORG volatility
ORG Beta1.6
Industry Beta0.73
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19465,000Frank Calabriahttps://www.originenergy.com.au

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. The company operates through two segments, Energy Markets and Integrated Gas. Its exploration and production portfolio includes the Bowen and Surat basins in Queensland; the Browse basin in Western Australia; and the Beetaloo basin in the Northern Territory.

Origin Energy Fundamentals Summary

How do Origin Energy's earnings and revenue compare to its market cap?
ORG fundamental statistics
Market CapAU$7.71b
Earnings (TTM)-AU$2.29b
Revenue (TTM)AU$12.13b

0.6x

P/S Ratio

-3.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORG income statement (TTM)
RevenueAU$12.13b
Cost of RevenueAU$10.29b
Gross ProfitAU$1.85b
ExpensesAU$4.14b
Earnings-AU$2.29b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.30
Gross Margin15.23%
Net Profit Margin-18.88%
Debt/Equity Ratio50.3%

How did ORG perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

-15%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORG (A$4.39) is trading below our estimate of fair value (A$9.53)

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


Price To Earnings Ratio

PE vs Industry: ORG is unprofitable, so we can't compare its PE Ratio to the Oceanic Electric Utilities industry average.

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


Price to Book Ratio

PB vs Industry: ORG is good value based on its PB Ratio (0.8x) compared to the XO Electric Utilities industry average (2.2x).


Future Growth

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

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: ORG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ORG's is expected to become profitable in the next 3 years.

Revenue vs Market: ORG's revenue is expected to decline over the next 3 years (-0.2% per year).

High Growth Revenue: ORG's revenue is forecast to decline over the next 3 years (-0.2% 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 (6.5%).


Past Performance

How has Origin Energy performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORG is currently unprofitable.

Growing Profit Margin: ORG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ORG is unprofitable, but has reduced losses over the past 5 years at a rate of 11.3% per year.

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

Earnings vs Industry: ORG is unprofitable, making it difficult to compare its past year earnings growth to the Electric Utilities industry (-13%).


Return on Equity

High ROE: ORG has a negative Return on Equity (-23.32%), as it is currently unprofitable.


Financial Health

How is Origin Energy's financial position?


Financial Position Analysis

Short Term Liabilities: ORG's short term assets (A$4.3B) do not cover its short term liabilities (A$5.9B).

Long Term Liabilities: ORG's short term assets (A$4.3B) do not cover its long term liabilities (A$5.3B).


Debt to Equity History and Analysis

Debt Level: ORG's debt to equity ratio (50.3%) is considered high.

Reducing Debt: ORG's debt to equity ratio has reduced from 71.1% to 50.3% over the past 5 years.


Balance Sheet


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: Whilst unprofitable ORG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ORG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.5% per year.


Dividend

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

4.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORG's dividend (4.56%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: ORG's dividend (4.56%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


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: ORG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ORG's dividends in 3 years are forecast to be covered by earnings (70.5% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Frank Calabria (53 yo)

4.92yrs

Tenure

AU$5,164,000

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 ($USD3.76M) is above average for companies of similar size in the Australian market ($USD2.29M).

Compensation vs Earnings: Frank's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: ORG's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: ORG's board of directors are considered experienced (3.7 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

Origin Energy Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Origin Energy Limited
  • Ticker: ORG
  • Exchange: ASX
  • Founded: 1946
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: AU$7.707b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.