Horizon Oil Limited
Horizon Oil Limited Fundamental Analysis
Horizon Oil Limited (HZN.AX) shows weak financial fundamentals with a PE ratio of 37.02, profit margin of 8.59%, and ROE of 17.50%. The company generates $0.1B in annual revenue with weak year-over-year growth of -6.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HZN.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakHZN.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateHZN.AX shows balanced valuation metrics.
Growth Score
WeakHZN.AX faces weak or negative growth trends.
Financial Health Score
ExcellentHZN.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateHZN.AX maintains healthy but balanced margins.
Key Financial Metrics
Is HZN.AX Expensive or Cheap?
P/E Ratio
HZN.AX trades at 37.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HZN.AX's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values Horizon Oil Limited at 5.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.63 times EBITDA. This is generally considered low.
How Well Does HZN.AX Make Money?
Net Profit Margin
For every $100 in sales, Horizon Oil Limited keeps $8.59 as profit after all expenses.
Operating Margin
Core operations generate 13.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.50 in profit for every $100 of shareholder equity.
ROA
Horizon Oil Limited generates $4.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Horizon Oil Limited generates strong operating cash flow of $67.14M, reflecting robust business health.
Free Cash Flow
Horizon Oil Limited generates strong free cash flow of $46.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
HZN.AX converts 10.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How HZN.AX Stacks Against Its Sector Peers
| Metric | HZN.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.02 | 21.19 | Worse (Expensive) |
| ROE | 17.50% | 948.00% | Weak |
| Net Margin | 8.59% | -73259.00% (disorted) | Weak |
| Debt/Equity | 0.86 | -0.48 (disorted) | Distorted |
| Current Ratio | 1.83 | 6.31 | Neutral |
| ROA | 4.46% | -10913945.00% (disorted) | Weak |
HZN.AX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Horizon Oil Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.73%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
117.22%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-24.25%
Industry Style: Cyclical, Value, Commodity
Declining