Otto Energy Limited Fundamental Analysis (ASX: OEL.AX)
Otto Energy Limited Fundamental Analysis (ASX: OEL.AX)
Otto Energy Limited (ASX: OEL.AX) shows strong financial fundamentals with a PE ratio of 2.61, profit margin of 50.34%, and ROE of 30.01%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OEL.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOEL.AX demonstrates superior asset utilization.
Valuation Score
ExcellentOEL.AX trades at attractive valuation levels.
Growth Score
WeakOEL.AX faces weak or negative growth trends.
Financial Health Score
ExcellentOEL.AX maintains a strong and stable balance sheet.
Profitability Score
ExcellentOEL.AX achieves industry-leading margins.
Key Financial Metrics
Is OEL.AX Expensive or Cheap?
P/E Ratio
OEL.AX trades at 2.61 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OEL.AX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Otto Energy Limited at 0.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.53 times EBITDA. This is generally considered low.
How Well Does OEL.AX Make Money?
Net Profit Margin
For every $100 in sales, Otto Energy Limited keeps $50.34 as profit after all expenses.
Operating Margin
Core operations generate 58.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.01 in profit for every $100 of shareholder equity.
ROA
Otto Energy Limited generates $21.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Otto Energy Limited produces operating cash flow of $4.79M, showing steady but balanced cash generation.
Free Cash Flow
Otto Energy Limited generates strong free cash flow of $5.03M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
OEL.AX converts 17.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
13.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How OEL.AX Stacks Against Its Sector Peers
| Metric | OEL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.61 | 22.19 | Better (Cheaper) |
| ROE | 30.01% | 1142.00% | Weak |
| Net Margin | 50.34% | 1205.00% | Weak |
| Debt/Equity | 0.00 | 2.82 | Strong (Low Leverage) |
| Current Ratio | 13.69 | 3.03 | Strong Liquidity |
| ROA | 21.51% | 477.00% | Weak |
OEL.AX outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Otto Energy Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Commodity
EPS CAGR
N/A
Industry Style: Cyclical, Value, Commodity
FCF CAGR
N/A
Industry Style: Cyclical, Value, Commodity