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Otto Energy Limited (OEL) Fair Value & Analysis

Energy · AU · Market cap A$28.8M

OE Otto Energy Limited OEL · AU
PriceA$0.0060
Fair ValueA$0.0062
Upside+3.3%
Quality64/100
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Weak Growth
Highly profitable · 48.6% net margin
Low debt · negative free cash flow
Ranks above peers (9/10)
Moderate moat 60/100
Evidence: Medium Range A$0.0062 – A$0.0062 Share as image

Fair value as of: Jul 16, 2026

From 5 valuation models · updated 25 days ago

A solid business, currently priced close to our fair value.

What matters now

  • The price is below even our cautious bear case (A$0.0062). The market is more pessimistic than our downside scenario.
  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
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Price vs Fair Value (5 years)

A$0.0210 A$0.0040 Fair Value A$0.0062 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range A$0.0040 – A$0.0210 · the A$0.0060 price screens below the A$0.0062 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Otto Energy Limited (OEL) currently trades at A$0.0060, while our model-based Fair Value estimate is A$0.0062, implying the stock looks roughly 3.3% fairly valued today. The Quality Score stands at 64/100 (solid quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Otto Energy Limited generated revenue of A$14.1M at a net margin of 48.6%. Revenue declined 17.6% year over year. It earns a return on equity of 21.0%. The balance sheet holds a net cash position of A$22.6M. Fundamentals as of Jul 16, 2026

The share trades near its 52-week high and 50% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -26% fair-value upside, at 3%, OEL screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth-Adj P/E A$0.0100 A$0.0100 A$0.0100 68
Graham-Dodd A$0.0100 A$0.0200 54
Lynch FV A$0.0100 A$0.0100 A$0.0100 50
All 5 models by family
Earnings-Based
Graham-Dodd A$0.0100 A$0.0200 54
Lynch FV A$0.0100 A$0.0100 A$0.0100 50
PEG = 1.0 A$0.0100 A$0.0100 A$0.0100 46
Asset-Based
NCAV (Graham) A$0.0100 50
Growth Earnings
Growth-Adj P/E A$0.0100 A$0.0100 A$0.0100 68

Widest divergence: Earnings-Based (A$0.0100) versus Earnings-Based (A$0.0100). Highest evidence: Growth-Adj P/E (68).

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Key figures & financial health

Revenue (TTM) A$14.1M
Revenue growth (YoY) -17.6%
Net margin 48.6%
Return on equity 21.0%
Free cash flow −A$3.8M FY2025
Operating margin 12.3%
More key figures
EPS growth (YoY) +57.2%
Net cash A$22.6M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 59 · Market factors (momentum, volatility) 68

Profitability 34
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 74
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Otto Energy Limited operates as an oil and gas exploration, production, and sales company in North America. The company was formerly known as Ottoman Energy Limited and changed its name to Otto Energy Limited in August 2006. The company was incorporated in 2004 and is based in Adelaide, Australia

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Otto Energy Limited reported revenue of A$23.6M in FY2025 versus A$40.2M in FY2021, a compound −12.4%/yr. Reported net income was A$1.1M in FY2025.

Growth Quality 10/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$23.6M
Latest YoY
−23.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−26.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.7%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+35.8%
Revenue −12.4%/yr
FY21 A$40.2M
FY22 A$58.7M
FY23 A$49.7M
FY24 A$31.1M
FY25 A$23.6M
Net income
FY21 −A$603K
FY22 A$21.4M
FY23 −A$10.4M
FY24 −A$2.5M
FY25 A$1.1M

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Cite: Fair Value Calculator (2026). "Otto Energy Limited Fair Value". https://www.fairvalue-calculator.com/stock/OEL

Peer Group

Oil & Gas E&P · 315 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside +4% · Above median
Return on equity (TTM) 21% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 49% · Top 25%
Operating margin (TTM) 12% · Above median
Revenue growth -18% · Below median

Valuation Multiples vs Oil & Gas E&P median · lower = cheaper

P/B 0.60× · Cheaper than 75% of peers
P/S (TTM) 1.44× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 39 · sector 14
FUTURE 0 · sector 0
PAST 84 · sector 0
HEALTH 100 · sector 87
DIVIDEND 0 · sector 66

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas E&P stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
CNOOC Limited 600938 ¥28.97 ¥32.55 +12%
ConocoPhillips explores for, COP $109.04 $91.79 -16%
Canadian Natural Resources Limited CNQ $42.86 $31.54 -26%
EOG Resources, Inc EOG $139.89 $130.19 -7%
Occidental Petroleum Corporation OXY $54.86 $30.68 -44%
Diamondback Energy, Inc FANG $183.39 $106.12 -42%
Devon Energy Corporation DVN $43.83 $27.06 -38%
Woodside Energy Group WDS A$30.46 A$20.71 -32%
EQT Corporation EQT $48.85 $42.85 -12%
Texas Pacific Land Corporation TPL $415.70 $79.20 -81%

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Frequently asked questions

Is Otto Energy Limited (OEL) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of A$0.0062 versus a price of A$0.0060, about +3% (fairly valued).
What is the fair value of OEL?
Our model-based fair value for Otto Energy Limited is A$0.0062 (as of Jul 16, 2026), built from audited fundamentals. The current price is A$0.0060.
What is the quality score of OEL?
Otto Energy Limited has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Otto Energy Limited (OEL)?
Otto Energy Limited reported trailing-twelve-month revenue of about A$14.1M (latest available figure, as of Jul 16, 2026).
What is the net profit margin of OEL?
The net profit margin of Otto Energy Limited is about 48.6%, meaning it keeps roughly 48.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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