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Origin Energy Limited

OGFGF
46
Oil & Gas Integrated · Energy
Price
$7.28
+0.00 (+0.00%)
Market Cap
$12.54B
Exchange
Other OTC
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

2.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.76B (2021) → 1.72B (2025)

Origin Energy Limited, an integrated energy enterprise established in 1946 and headquartered in Barangaroo, Australia, operates across the entire energy value chain. The company is engaged in the exploration and production of natural gas, electricity generation, wholesale and retail distribution of electricity and gas, and the sale of liquefied natural gas (LNG) both within Australia and internationally. Origin's business is structured into three primary divisions: Energy Markets, Integrated Gas, and Corporate. Its natural gas exploration and production assets are situated in various Australian basins, including the Bowen and Surat basins in Queensland, the Browse basin in Western Australia, and the Beetaloo basin in the Northern Territory. The company's electricity generation portfolio is diverse, encompassing power plants fueled by coal, wind, pumped hydro storage, solar, and cogeneration technologies. Beyond fundamental energy sales, Origin offers eco-friendly GreenPower and green gas alternatives, and supplies LPG to both residential and commercial customers. Additionally, it provides a range of home climate control and water heating solutions, such as electric and gas hot water systems, split-system air conditioners, various ducted and space heating options, ducted evaporative cooling systems, and ducted reverse cycle air conditioning units.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-9.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-44.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Cash Position

Cash flow positive

$8.5B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Origin Energy Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
13.2%
Thin — 13.2% gross margin
Operating Margin
7.6%
Modest — 7.6% operating margin
ROCE
4.1%
Weak — 4.1% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+3.0%
Slow sales growth (3.0% YoY)
EPS YoY
+215.6%
Earnings growing fast (215.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
120%
Turns 120% of profit into real cash
FCF Margin
2.3%
Thin free cash flow (2.3%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.48
Conservative — low debt load (0.48)
Interest Cover
8.74x
Comfortably covers interest (8.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
5.1x
Attractive valuation — P/E 5.1

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-6.2
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
5.70%
Healthy income — 5.70% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+14.6%
Dividend growing fast (14.6% YoY)

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