Is Santos Limited (ASX:STO) Trading At A 32% Discount?
Oct 20
Australian (ASX) Energy Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies124
- 7D-2.0%
- 3M-2.5%
- 1Y-2.7%
- YTD-0.3%
Over the last 7 days, the Energy industry has dropped 2.0%, driven by Woodside Energy Group declining 2.5%. In contrast, Invictus Energy has gained 68%. As for the longer term, the industry's performance has been flat for the past year. Looking forward, earnings are forecast to decline by 6.3% per year.
Sector Valuation and Performance
Has the Australian Energy Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$142.9b | AU$130.7b | AU$20.0b | 5.7x | 7.2x | 1.1x |
| Thu, 28 Sep 2023 | AU$144.0b | AU$130.5b | AU$20.0b | 4.8x | 7.2x | 1.1x |
| Sat, 26 Aug 2023 | AU$144.1b | AU$130.7b | AU$20.5b | 5x | 7x | 1.1x |
| Mon, 24 Jul 2023 | AU$141.1b | AU$127.4b | AU$23.0b | 5.6x | 6.1x | 1.1x |
| Wed, 21 Jun 2023 | AU$139.7b | AU$127.1b | AU$22.9b | 6.3x | 6.1x | 1.1x |
| Fri, 19 May 2023 | AU$147.3b | AU$129.9b | AU$24.3b | 6.4x | 6.1x | 1.1x |
| Sun, 16 Apr 2023 | AU$150.2b | AU$129.5b | AU$24.2b | 6.9x | 6.2x | 1.2x |
| Tue, 14 Mar 2023 | AU$159.2b | AU$144.6b | AU$23.8b | 6.5x | 6.7x | 1.1x |
| Thu, 09 Feb 2023 | AU$166.0b | AU$108.6b | AU$14.0b | 7.6x | 11.8x | 1.5x |
| Sat, 07 Jan 2023 | AU$160.3b | AU$109.0b | AU$14.1b | 7x | 11.3x | 1.5x |
| Mon, 05 Dec 2022 | AU$163.5b | AU$109.3b | AU$14.2b | 7x | 11.5x | 1.5x |
| Wed, 02 Nov 2022 | AU$165.7b | AU$111.0b | AU$14.7b | 7.2x | 11.3x | 1.5x |
| Fri, 30 Sep 2022 | AU$151.3b | AU$110.5b | AU$14.6b | 7.3x | 10.3x | 1.4x |
| Sun, 28 Aug 2022 | AU$164.5b | AU$101.4b | AU$11.0b | 9.1x | 14.9x | 1.6x |
| Tue, 26 Jul 2022 | AU$144.2b | AU$79.0b | AU$4.7b | 11.7x | 30.9x | 1.8x |
| Thu, 23 Jun 2022 | AU$145.1b | AU$78.9b | AU$4.7b | 12x | 31.2x | 1.8x |
| Sat, 21 May 2022 | AU$121.2b | AU$78.8b | AU$4.6b | 11.6x | 26.3x | 1.5x |
| Mon, 18 Apr 2022 | AU$127.2b | AU$78.1b | AU$4.5b | 12.6x | 28.2x | 1.6x |
| Wed, 16 Mar 2022 | AU$120.0b | AU$78.7b | AU$5.1b | 12.9x | 23.3x | 1.5x |
| Fri, 11 Feb 2022 | AU$115.1b | AU$62.9b | -AU$416,193,973.00 | 30.8x | -276.4x | 1.8x |
| Sun, 09 Jan 2022 | AU$107.7b | AU$62.9b | -AU$406,107,731.00 | 39.8x | -265.2x | 1.7x |
| Tue, 07 Dec 2021 | AU$93.6b | AU$63.1b | -AU$386,807,622.00 | 32.9x | -242x | 1.5x |
| Thu, 04 Nov 2021 | AU$100.9b | AU$62.5b | -AU$429,558,329.00 | 33.9x | -234.9x | 1.6x |
| Sat, 02 Oct 2021 | AU$97.7b | AU$62.9b | -AU$383,581,639.00 | 30.8x | -254.6x | 1.6x |
| Mon, 30 Aug 2021 | AU$83.7b | AU$61.6b | -AU$198,560,481.73 | 26.9x | -421.6x | 1.4x |
| Tue, 06 Jul 2021 | AU$87.0b | AU$61.6b | -AU$199,465,357.73 | 31.5x | -436.2x | 1.4x |
| Fri, 09 Apr 2021 | AU$86.8b | AU$60.5b | -AU$3,873,887,014.56 | 15.1x | -22.4x | 1.4x |
| Thu, 31 Dec 2020 | AU$83.6b | AU$59.6b | -AU$7,596,420,732.55 | 30.5x | -11x | 1.4x |
Price to Earnings Ratio
-9.9x
Current Industry PE
- Investors are pessimistic on the Australian Energy industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 7.2x which is higher than its 3-year average PE of -60.2x.
- The 3-year average PS ratio of 1.4x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- Total earnings for the Energy industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 25% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Energy sector?
| AU Market | -1.02% | |
| Energy | -2.04% | |
| Energy Services | 2.17% | |
| Oil and Gas | -2.05% | |
Industry PE
- Investors are most optimistic about the Oil and Gas industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings decline of 6.1%, which is lower than the prior year's growth of 10.6% per year.
- Investors are most pessimistic about the Energy Services industry, which is trading below its 3-year average of 35.1x.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Oil and Gas industry since they expect its earnings to decline by only 6.1% per year over the next 5 years, which isn't as bad as the other industries.
- This is a reversal from its past annual earnings growth rate of 11% per year.
- In contrast, the Energy Services industry is expected to see its earnings decline by 76% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IVZ Invictus Energy | AU$0.26 | 67.7% +AU$130.2m | 85.7% | PB3.4x | |
| VEA Viva Energy Group | AU$2.79 | 2.2% +AU$92.4m | -1.4% | PS0.2x | |
| PDN Paladin Energy | AU$0.94 | 1.6% +AU$46.8m | 11.2% | PB4.4x | |
| ALD Ampol | AU$31.56 | 0.5% +AU$40.5m | 15.9% | PE57.7x | |
| BPT Beach Energy | AU$1.54 | 0.7% +AU$22.8m | -3.5% | PE8.7x |
