Origin Energy (ORG.AX)
Utilities · ASX · Australia
Fundamentals
Valuation and ratings
Origin Energy trades at A$10.47, which is 46% above the A$5.66 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 35 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Origin Energy
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 Energy Markets, Share of Octopus Energy, and Integrated Gas segments. Its exploration and production portfolio includes the Bowen and Surat basins in Queensland; the Browse basin in Western Australia; and the Cooper-Eromanga basins in Queensland. The company also generates electricity from coal, wind, and solar; sells electricity, natural gas, and LPG; and provides GreenPower products. In addition, it sells, installs, repairs, and maintains solar photovoltaic systems and battery solutions; and offers internet products and services to residential and business customers. Further, the company engages in the e-mobility business. Origin Energy Limited was incorporated in 1946 and is based in Barangaroo, Australia.
ORG.AX passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Origin Energy (ORG.AX) undervalued?
Against our discounted cash flow estimate of A$5.66, ORG.AX at A$10.47 is 46% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is ORG.AX's P/E ratio?
ORG.AX trades at 17.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.