# Karoon Energy (KAR.AU)

Canonical: https://gigainvestors.com/s/KAR.AU

Analysis as of: 2026-10-16T07:44:51.735Z. Financial observations: FY2019–FY2025.

Listing currency: AUD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 1.67 per share; close as of 2026-10-15.

Estimated value: low AUD 2.15 per share, central AUD 2.39 per share, high AUD 2.71 per share. Buy at or below the central value AUD 2.39 per share. Valuation as of 2026-10-16T07:44:51.735Z; scenarios are not confidence intervals.

Expected annual return: 14.2% at the stated quote. About 14.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 7 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 0.68×

Chart: Operating margin; fiscal year observations.

- FY2021: -0.07×

- FY2022: 0.54×

- FY2023: 0.56×

- FY2024: 0.40×

- FY2025: 0.27×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 14.6%

- ROIC, second-lowest year: -1.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 29.6%

- ROIC including acquisitions, ten-year median: -1.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: -103.5%

- FY2021: -1.8%

- FY2022: 37.5%

- FY2023: 35.3%

- FY2024: 17.7%

- FY2025: 11.5%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $678K

- Net income, five-year total: $356M

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 10.82×

- FY2022: 1.90×

- FY2023: 0.70×

- FY2024: 0.75×

- FY2025: -1.06×

### management: pass

- buybacks unrelated to price (informational)

- Per-share earnings: -0.05 to 0.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 10.9%

- Diluted shares, 5-year annual growth: 10.9%

- Per-share value change: $0.22

- Per-share value, starting three-year median: -$0.05

- Per-share value, ending three-year median: $0.17

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 5.3%

- Buyback history: 2 years

- Debt-funded buybacks: No

- ROIC, last three-year median: 17.7%

Chart: Earnings per share; fiscal year observations.

- FY2019: -$0.05

- FY2020: -$0.19

- FY2021: $0.01

- FY2022: -$0.11

- FY2023: $0.28

- FY2024: $0.16

- FY2025: $0.17

### accounting: pass

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 0.84×

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.00×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2020: -4.8%

- FY2021: -2.5%

- FY2022: -18.8%

- FY2023: -12.0%

- FY2024: -15.8%

- FY2025: -7.1%

## Holders

## Price story

Down 36% since Sep 2023 · sales -19%

Story as of 2026-10-16T10:00:13.228Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.8% a year for ten years

### Sales · FY2024–2025

sales -19%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: $0 

- FY2020: $0 

- FY2021: $171M 

- FY2022: $385M 

- FY2023: $567M 

- FY2024: $777M 

- FY2025: $629M 

### Gross margin · FY2025

gross margin 42.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2022: 86.8% 

- FY2023: 87.0% 

- FY2024: 75.7% 

- FY2025: 42.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in oil & gas e&p; annual sales are USD 628.6 million.

- Source: https://eodhd.com/api/fundamentals/LBL.F.json#2026-06-30 (filed 2026-10-16T07:44:51.735Z); FY2025: revenue 628600000; grossProfit 269400000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 42.9% to 87% during 2023–25; it earns 14.6% on its capital.

- Source: https://eodhd.com/api/fundamentals/LBL.F.json#2023-06-30 (filed 2026-10-16T07:44:51.735Z); FY2023: grossProfit / revenue = 87%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:51.735Z); FY2024: grossProfit / revenue = 75.7%.

- Source: https://eodhd.com/api/fundamentals/LBL.F.json#2026-06-30 (filed 2026-10-16T07:44:51.735Z); FY2025: grossProfit / revenue = 42.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:51.735Z); 7-year return on capital observations [[2020,-1.0348366316702282],[2021,-0.01782393044236186],[2022,0.3751867798568171],[2023,0.35298974331896243],[2024,0.17707170272156317],[2025,0.11492018537590114]]; median 0.14599594404873215. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 4 years; bought back USD 45.1 million of shares.

- Source: https://www.karoonenergy.com.au/wp-content/uploads/Annual-Report-2021.pdf (filed 2026-10-16T07:44:51.735Z); FY2021: growth capex 0; upkeep 22663000; owner earnings 47427000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/LBL.F.json#2023-06-30 (filed 2026-10-16T07:44:51.735Z); FY2023: growth capex 211400000; upkeep 143900000; owner earnings 113480000. Growth capex / owner earnings = 1.862883327458583.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:51.735Z); FY2024: growth capex 0; upkeep 220900000; owner earnings 95319508. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:51.735Z); Dividend observations: [[2022,0],[2023,0],[2024,24200000],[2025,35300000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/LBL.F.json#2026-06-30 (filed 2026-10-16T07:44:51.735Z); FY2025: cash repurchases 45100000 USD.

### Are managers owners

Insiders own 1.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); KAR.AU SharesStats.PercentInsiders = 1.944 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:51.735Z); Ten-year compound average after fade. Initial solved rate -0.08031191994143977. Price 1.665; FX 1.4454626926079037; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 2.09 per share

- 2016-11: AUD 1.69 per share

- 2016-12: AUD 1.63 per share

- 2017-01: AUD 1.63 per share

- 2017-02: AUD 1.51 per share

- 2017-03: AUD 1.49 per share

- 2017-04: AUD 1.35 per share

- 2017-05: AUD 1.21 per share

- 2017-06: AUD 1.17 per share

- 2017-07: AUD 1.23 per share

- 2017-08: AUD 1.03 per share

- 2017-09: AUD 1.17 per share

- 2017-10: AUD 1.09 per share

- 2017-11: AUD 1.24 per share

- 2017-12: AUD 1.19 per share

- 2018-01: AUD 1.17 per share

- 2018-02: AUD 1.05 per share

- 2018-03: AUD 1.05 per share

- 2018-04: AUD 1.15 per share

- 2018-05: AUD 1.00 per share

- 2018-06: AUD 1.03 per share

- 2018-07: AUD 1.07 per share

- 2018-08: AUD 1.04 per share

- 2018-09: AUD 1.01 per share

- 2018-10: AUD 0.97 per share

- 2018-11: AUD 0.86 per share

- 2018-12: AUD 0.77 per share

- 2019-01: AUD 0.77 per share

- 2019-02: AUD 0.97 per share

- 2019-03: AUD 0.95 per share

- 2019-04: AUD 0.87 per share

- 2019-05: AUD 0.81 per share

- 2019-06: AUD 0.87 per share

- 2019-07: AUD 1.51 per share

- 2019-08: AUD 1.13 per share

- 2019-09: AUD 1.05 per share

- 2019-10: AUD 0.96 per share

- 2019-11: AUD 1.10 per share

- 2019-12: AUD 1.14 per share

- 2020-01: AUD 1.15 per share

- 2020-02: AUD 0.84 per share

- 2020-03: AUD 0.44 per share

- 2020-04: AUD 0.54 per share

- 2020-05: AUD 0.56 per share

- 2020-06: AUD 0.60 per share

- 2020-07: AUD 0.71 per share

- 2020-08: AUD 0.78 per share

- 2020-09: AUD 0.76 per share

- 2020-10: AUD 0.77 per share

- 2020-11: AUD 1.00 per share

- 2020-12: AUD 1.05 per share

- 2021-01: AUD 1.00 per share

- 2021-02: AUD 1.12 per share

- 2021-03: AUD 1.07 per share

- 2021-04: AUD 1.27 per share

- 2021-05: AUD 1.22 per share

- 2021-06: AUD 1.32 per share

- 2021-07: AUD 1.24 per share

- 2021-08: AUD 1.22 per share

- 2021-09: AUD 1.54 per share

- 2021-10: AUD 1.80 per share

- 2021-11: AUD 1.67 per share

- 2021-12: AUD 1.66 per share

- 2022-01: AUD 1.89 per share

- 2022-02: AUD 2.02 per share

- 2022-03: AUD 2.13 per share

- 2022-04: AUD 2.05 per share

- 2022-05: AUD 2.02 per share

- 2022-06: AUD 1.72 per share

- 2022-07: AUD 1.84 per share

- 2022-08: AUD 2.12 per share

- 2022-09: AUD 1.80 per share

- 2022-10: AUD 2.10 per share

- 2022-11: AUD 2.30 per share

- 2022-12: AUD 2.17 per share

- 2023-01: AUD 2.29 per share

- 2023-02: AUD 2.32 per share

- 2023-03: AUD 2.12 per share

- 2023-04: AUD 2.11 per share

- 2023-05: AUD 1.97 per share

- 2023-06: AUD 1.95 per share

- 2023-07: AUD 2.21 per share

- 2023-08: AUD 2.38 per share

- 2023-09: AUD 2.61 per share

- 2023-10: AUD 2.50 per share

- 2023-11: AUD 2.01 per share

- 2023-12: AUD 2.03 per share

- 2024-01: AUD 1.96 per share

- 2024-02: AUD 1.94 per share

- 2024-03: AUD 2.16 per share

- 2024-04: AUD 1.95 per share

- 2024-05: AUD 1.81 per share

- 2024-06: AUD 1.83 per share

- 2024-07: AUD 1.87 per share

- 2024-08: AUD 1.73 per share

- 2024-09: AUD 1.57 per share

- 2024-10: AUD 1.39 per share

- 2024-11: AUD 1.33 per share

- 2024-12: AUD 1.39 per share

- 2025-01: AUD 1.58 per share

- 2025-02: AUD 1.54 per share

- 2025-03: AUD 1.58 per share

- 2025-04: AUD 1.44 per share

- 2025-05: AUD 1.67 per share

- 2025-06: AUD 1.92 per share

- 2025-07: AUD 1.87 per share

- 2025-08: AUD 1.76 per share

- 2025-09: AUD 1.65 per share

- 2025-10: AUD 1.61 per share

- 2025-11: AUD 1.54 per share

- 2025-12: AUD 1.54 per share

- 2026-01: AUD 1.70 per share

- 2026-02: AUD 1.55 per share

- 2026-03: AUD 2.06 per share

- 2026-04: AUD 2.19 per share

- 2026-05: AUD 1.96 per share

- 2026-06: AUD 1.46 per share

- 2026-07: AUD 1.74 per share

- 2026-08: AUD 1.75 per share

- 2026-09: AUD 1.58 per share

- 2026-10: AUD 1.55 per share

## Annual estimated value (AUD per share)

- FY2025: low AUD 2.00 per share, central AUD 2.23 per share, high AUD 2.53 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

Karoon Energy

KAR · AU

S&P/ASX 200

Not a wonderful business

3 quality tests fail. A lower price would not fix the business.

Share price: AUD 1.67
Buy up to: AUD 2.39
Expected / yr: 14.2% at today's price (10.0% at central value)

The business

How it makes money
Why customers stay
Where the cash goes
Are managers owners
What the price says

1. Is this a good business?

Evidence only; not required for Buy

3 loss years were recorded (limit 2), and margins varied 68.2% around their average (limit 35%).

Operating margin

5y median: 40.2%
Worst year: -7.4%
Latest · 2025: 27.0%

Capital return excluding acquisitions: median 14.6% (minimum 15%), and the second-worst year -1.8% (minimum 10%).

ROIC excluding acquisitions

6y median: 14.6%
Worst year: -103.5%
Latest · 2025: 11.5%

Each $1 of profit left $0.00 for owners over five years (minimum $0.80).

Annual owner cash / profit

Five-year totals: 0.00×
Annual median: 0.75×
Latest · 2025: -1.06×

Per-share value rose from -0.05 to 0.17, comparing three-year medians at each end (must rise and stay positive).

Earnings per share

7y median: $0.01
Worst year: -$0.19
Latest · 2025: $0.17

Profits were backed by cash: accruals were -7.1% of assets (limit 10%).

Sloan accruals

6y median: -9.6%
Worst year: -2.5%
Latest · 2025: -7.1%

Profit record · fail 3 loss years in 7 (at most 2), mean operating margin 33.8%, three-year average owner earnings per share 0.05 USD. 3 loss years in the last 10; at most 2 allowed.

2. Is the price low enough?

PriceEstimated rangeBuy price

2016-10 · Price AUD 2.09; 2016-11 · Price AUD 1.69; 2016-12 · Price AUD 1.63; 2017-01 · Price AUD 1.63; 2017-02 · Price AUD 1.51; 2017-03 · Price AUD 1.49; 2017-04 · Price AUD 1.35; 2017-05 · Price AUD 1.21; 2017-06 · Price AUD 1.17; 2017-07 · Price AUD 1.23; 2017-08 · Price AUD 1.03; 2017-09 · Price AUD 1.17; 2017-10 · Price AUD 1.09; 2017-11 · Price AUD 1.24; 2017-12 · Price AUD 1.19; 2018-01 · Price AUD 1.17; 2018-02 · Price AUD 1.05; 2018-03 · Price AUD 1.05; 2018-04 · Price AUD 1.15; 2018-05 · Price AUD 1.00; 2018-06 · Price AUD 1.03; 2018-07 · Price AUD 1.07; 2018-08 · Price AUD 1.04; 2018-09 · Price AUD 1.01; 2018-10 · Price AUD 0.97; 2018-11 · Price AUD 0.86; 2018-12 · Price AUD 0.77; 2019-01 · Price AUD 0.77; 2019-02 · Price AUD 0.97; 2019-03 · Price AUD 0.95; 2019-04 · Price AUD 0.87; 2019-05 · Price AUD 0.81; 2019-06 · Price AUD 0.87; 2019-07 · Price AUD 1.51; 2019-08 · Price AUD 1.13; 2019-09 · Price AUD 1.05; 2019-10 · Price AUD 0.96; 2019-11 · Price AUD 1.10; 2019-12 · Price AUD 1.14; 2020-01 · Price AUD 1.15; 2020-02 · Price AUD 0.84; 2020-03 · Price AUD 0.44; 2020-04 · Price AUD 0.54; 2020-05 · Price AUD 0.56; 2020-06 · Price AUD 0.60; 2020-07 · Price AUD 0.71; 2020-08 · Price AUD 0.78; 2020-09 · Price AUD 0.76; 2020-10 · Price AUD 0.77; 2020-11 · Price AUD 1.00; 2020-12 · Price AUD 1.05; 2021-01 · Price AUD 1.00; 2021-02 · Price AUD 1.12; 2021-03 · Price AUD 1.07; 2021-04 · Price AUD 1.27; 2021-05 · Price AUD 1.22; 2021-06 · Price AUD 1.32; 2021-07 · Price AUD 1.24; 2021-08 · Price AUD 1.22; 2021-09 · Price AUD 1.54; 2021-10 · Price AUD 1.80; 2021-11 · Price AUD 1.67; 2021-12 · Price AUD 1.66; 2022-01 · Price AUD 1.89; 2022-02 · Price AUD 2.02; 2022-03 · Price AUD 2.13; 2022-04 · Price AUD 2.05; 2022-05 · Price AUD 2.02; 2022-06 · Price AUD 1.72; 2022-07 · Price AUD 1.84; 2022-08 · Price AUD 2.12; 2022-09 · Price AUD 1.80; 2022-10 · Price AUD 2.10; 2022-11 · Price AUD 2.30; 2022-12 · Price AUD 2.17; 2023-01 · Price AUD 2.29; 2023-02 · Price AUD 2.32; 2023-03 · Price AUD 2.12; 2023-04 · Price AUD 2.11; 2023-05 · Price AUD 1.97; 2023-06 · Price AUD 1.95; 2023-07 · Price AUD 2.21; 2023-08 · Price AUD 2.38; 2023-09 · Price AUD 2.61; 2023-10 · Price AUD 2.50; 2023-11 · Price AUD 2.01; 2023-12 · Price AUD 2.03; 2024-01 · Price AUD 1.96; 2024-02 · Price AUD 1.94; 2024-03 · Price AUD 2.16; 2024-04 · Price AUD 1.95; 2024-05 · Price AUD 1.80; 2024-06 · Price AUD 1.83; 2024-07 · Price AUD 1.86; 2024-08 · Price AUD 1.73; 2024-09 · Price AUD 1.56; 2024-10 · Price AUD 1.39; 2024-11 · Price AUD 1.33; 2024-12 · Price AUD 1.39; 2025-01 · Price AUD 1.58 · Value 2.23 · Buy at or below 2.23; 2025-02 · Price AUD 1.53 · Value 2.23 · Buy at or below 2.23; 2025-03 · Price AUD 1.57 · Value 2.23 · Buy at or below 2.23; 2025-04 · Price AUD 1.44 · Value 2.23 · Buy at or below 2.23; 2025-05 · Price AUD 1.67 · Value 2.23 · Buy at or below 2.23; 2025-06 · Price AUD 1.92 · Value 2.23 · Buy at or below 2.23; 2025-07 · Price AUD 1.86 · Value 2.23 · Buy at or below 2.23; 2025-08 · Price AUD 1.76 · Value 2.23 · Buy at or below 2.23; 2025-09 · Price AUD 1.65 · Value 2.23 · Buy at or below 2.23; 2025-10 · Price AUD 1.60 · Value 2.23 · Buy at or below 2.23; 2025-11 · Price AUD 1.54 · Value 2.23 · Buy at or below 2.23; 2025-12 · Price AUD 1.54 · Value 2.23 · Buy at or below 2.23; 2026-01 · Price AUD 1.70 · Value 2.23 · Buy at or below 2.23; 2026-02 · Price AUD 1.54 · Value 2.39 · Buy at or below 2.39; 2026-03 · Price AUD 2.06 · Value 2.39 · Buy at or below 2.39; 2026-04 · Price AUD 2.19 · Value 2.39 · Buy at or below 2.39; 2026-05 · Price AUD 1.96 · Value 2.39 · Buy at or below 2.39; 2026-06 · Price AUD 1.46 · Value 2.39 · Buy at or below 2.39; 2026-07 · Price AUD 1.74 · Value 2.39 · Buy at or below 2.39; 2026-08 · Price AUD 1.75 · Value 2.39 · Buy at or below 2.39; 2026-09 · Price AUD 1.58 · Value 2.39 · Buy at or below 2.39; 2026-10 · Price AUD 1.54 · Value 2.39 · Buy at or below 2.39; 2026-10 · Price AUD 1.67 · Value 2.39 · Buy at or below 2.39

AUD per share · annual estimates

Price & return math
Value range	AUD 2.15 – AUD 2.71
Buy at or below	Central value AUD 2.39
Discount to value	1 − 1.67 / 2.39 = 30.3%
Return / year	About 14.2% a year at today's price (required return 10.0%)
Cash-flow inputs	Owner cash AUD 0.16/share; 0.0% growth for 5 years, then fades to 3.0%; excess cash AUD 0.40/share today.
Required return	10.0% / year, earned by construction at the central value

Revenue$629M

Revenue

Owner earnings-$133M

Owner earnings

Operating margin27.0%

Operating margin

Net cash / debt-$132M

Net cash / debt

Diluted shares748M

Diluted shares

Prices 15 Oct 2026 · FY2025