⚠️

Horizon Oil Limited

HZN · Energy

Proceed with Caution

Current Price

$0.23

Market Cap: $0.37BUpdated 5 hours ago

20/100

Value

Buffett Analysis

FAIL

75/100

Dividend

Barsi Analysis

PASS

✕Less than 10 years consecutive dividends - Not proven through cycles
✕Earnings yield below 8.5% - Energy stock may be overvalued
✕Missing data: Margin of Safety

✓6yr consistent dividend payments
✓58.3% return on capital - Strong moat
✓30.0% avg ROE over 10 years

Value Analysis (Buffett Principles)

Return on Equity (ROE)

Profit generated per $1 of shareholder investment

30.0%

Buffett: 20%

2025

18.8%

2024

31.1%

2023

45.8%

2022

24.5%

Dividend Analysis (Barsi Method)

Dividend Yield

Annual dividends as percentage of stock price

6yr AverageSCOREDN/A

Barsi: 6%

Yield 6% or higherYes

Barsi requires 6% minimum to ensure income beats inflation and provides meaningful returns. He uses 6-year average to smooth out one-time special dividends.

PASSED

9.09% yield meets Barsi's 6% minimum. Based on 6-year average, not one-time spikes.

Additional Metrics

Yield (TTM)

9.09%

P/E Ratio

22.50

P/B Ratio

3.96

52W Low

$0.17

52W High

$0.23

Owner Earnings

$-0.00B

Intrinsic Value

N/A

EPS CAGR

-20.3%

Analysis based on Warren Buffett and Luiz Barsi methodologies. Not financial advice. Learn how we analyze stocks →

!Some Data Unavailable

Both Buffett and Barsi analyses may be affected.

—6-year average dividend yield
—10-year EPS history
—Margin of safety

Debt-to-Equity

How much the company owes vs. what it owns

0.39

Buffett limit: 0.5

Buffett prefers <0.5 because great businesses shouldn't need debt to generate high returns. Low debt also means surviving downturns without bankruptcy risk.

PASSED

Acceptable. Debt level (0.39) is within Buffett's limit of 0.5.

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Formula: Total Debt ÷ Shareholders' Equity

Example: D/E of 0.3 means for every $1 of equity, the company owes 30¢. Lower is safer.

Gross Margin

Profit after production costs, before overhead

42.7%

4-year avg • Target: 40%+

2025

26.3%

2024

49.5%

2023

46.1%

2022

49.1%

40%+ margins indicate pricing power - customers pay a premium even when alternatives exist. Coca-Cola maintains 60%+ margins because of brand power.

FAILED

42.7% average margin is below the 40% standard. May indicate commodity-like business with weak pricing power.

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Formula: (Revenue - Cost of Goods Sold) ÷ Revenue × 100

Example: Selling a $10 product that costs $4 to make = 60% gross margin.

Liquidity Ratio

Short-term assets vs. short-term debts

2.31

Buffett target: > 1.5

2.31> 1.5

A ratio >1.5 means the company has $1.50 in liquid assets for every $1 of debt due within a year. This cushion protects against unexpected expenses.

PASSED

Strong liquidity. 2.31 ratio means ample cash to cover short-term obligations.

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Formula: Current Assets ÷ Current Liabilities

Example: If a company has $200M in cash, inventory, and receivables, but owes $100M within a year, current ratio = 2.0. Plenty of breathing room.

Free Cash Flow

Real cash left after running the business

$21M

Positive cash generation

Positive FCF means earnings are real, not accounting tricks. As Buffett says: 'Cash is fact, profit is opinion.' This cash funds dividends, buybacks, and growth.

PASSED

Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.

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Formula: Operating Cash Flow - Capital Expenditures

Example: A company with $100M operating cash flow spending $30M on equipment has $70M FCF.

Return on Invested Capital

Profit generated per $1 of capital invested in the business

58.3%

WACC: 9.0% • Threshold: 11.0%

2025

30.3%

2024

65.6%

2023

73.7%

2022

63.6%

ROIC measures how efficiently a company turns invested capital into profit. When ROIC exceeds the cost of capital (WACC), the company creates value. 10%+ sustained over 5 years indicates a durable economic moat.

PASSED

Exceptional 58.3% ROIC indicates strong economic moat and efficient capital allocation.

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Formula: NOPAT ÷ Invested Capital × 100, where NOPAT = Operating Income × (1 - Tax Rate)

Example: A company with $50M NOPAT on $400M invested capital = 12.5% ROIC. If WACC is 8%, each $1 invested creates 4.5¢ of value.

Sources: Warren Buffett's 1992 Letter to Shareholders • Joel Greenblatt, 'The Little Book That Beats the Market'

Earnings Predictability

Consistency of profits over time

4/10

Positive years • -20.3% CAGR

2025

$0.01

2024

$0.02

2023

$0.03

2022

$0.01

Buffett only invests in businesses he can forecast 5-10 years out. 8+ positive EPS years out of 10 with no losses proves the business generates reliable earnings through economic cycles.

PASSED

Cyclical business - earnings naturally fluctuate with commodity prices. Focus on dividend consistency instead.

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Formula: Count of positive EPS years in 10-year history

Example: A company with 10 consecutive positive EPS years (no losses) demonstrates predictable earnings power that Buffett seeks.

Sources: Warren Buffett's 2007 Letter to Shareholders • Mary Buffett & David Clark, 'The New Buffettology'

Earnings Yield

Return on investment at current price (inverse of P/E)

3.3%

Required: 8.5% (Treasury + risk premium)

Earnings Yield

3.3%

Required Yield

8.5%

Graham Number (P/E × P/B)89.1

Earnings yield must exceed 10-year Treasury yield plus a risk premium (typically 3%). If bonds yield 4.5%, stocks should yield at least 7.5% to justify the added risk.

FAILED

3.3% earnings yield is below required 8.5% (4.5% Treasury + 845.5% risk premium).

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Formula: (EPS ÷ Stock Price) × 100

Example: A stock at $100 with $8 EPS = 8% earnings yield. Compare to 4.5% Treasury yield: 3.5% premium for equity risk.

Sources: Benjamin Graham, 'The Intelligent Investor' • Warren Buffett's 1992 Letter

Dividend History

Track record of consistent dividend payments

6 years

2025

$0.030%

2024

$0.03-14%

2023

$0.04+17%

2022

$0.030%

2021

$0.03—

Skipped YearNone

Cut 30%+No

6+ years with no skipped payments or 30%+ cuts proves the company can generate reliable cash through economic cycles. Consistency matters more than yield.

PASSED

6 years of consistent dividends meets Barsi's 6-year minimum requirement.

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Example: A company paying dividends for 20 years, even during 2008 and 2020 crises, proves it can weather storms.

Sector

Industry category of the business

⚡

Oil & Gas E&P

Energy

BESST SectorYes

BESST sectors (Banks, Energy, Sanitation, Insurance, Telecom) provide essential services with predictable demand regardless of economic conditions. People always need electricity and banking.

PASSED

Energy is an essential service sector with stable, predictable cash flows - ideal for dividend investing.

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Example: During recessions, people cut Netflix but keep paying electricity bills. Essential services = reliable dividends.