Despite a relatively neutral performance during 2022, OMV Petrom shares remain very popular among Romanian investors and top-performing international funds. While you can buy SNP shares directly, sometimes it is worth considering an ETF with SNP representation.
OMV Petrom S.A. is the largest energy company in South-East Europe, with activities in Exploration and Production, Refining and Marketing, Natural Gas and Electricity. OMV Petrom S.A. is the largest energy company in South-East Europe, with activities in Exploration and Production, Refining and Marketing, Natural Gas and Electricity.
The company's shares have been traded under the stock symbol SNP since 3 September 2001 and are now one of the top holdings in the largest Frontier and Emerging Markets ETFs (FM).
OMV Petrom (BVB: SNP) Shares - Research and Ratings
- Is SNP stock undervalued compared to its fair value, analyst forecasts, and price relative to the market?
- What is the analyst 12-month SNP shares price forecast?
- What are SNP’s future growth expectations?
- How has OMV Petrom stock performed over the past 5 years?
- Should you buy OMV Petrom shares or invest in ETFs with SNP representation?
Understanding OMV Petrom (BVB: SNP) shares: A brief history
In late 2004, Petrom was privatized by the Romanian state and sold to Austrian oil company OMV, which acquired of the previous SNP Petrom SA. It is one of the largest corporations in Romania and the largest oil and gas producer in Southeast Europe.
The Company’s business activities are divided into 3 segments: Upstream, Downstream Oil, and Downstream Gas.
- In the Upstream segment, OMV Petrom SA is involved in onshore and offshore exploration activities and the production of crude oil and natural gas.
- In the Downstream Gas segment, it is active in the distribution of gas and electrical energy generation and distribution.
- In the Downstream Oil segment, the Company is engaged in the operation of a refinery, as well as retail and wholesale of petroleum and petroleum products in Romania, Moldova, Bulgaria, and Serbia.
The Company operates through numerous subsidiaries, including OMV Petrom Marketing SRL, Petrom Moldova SRL, OMV Bulgaria OOD, OMV Serbija DOO, Petrom Aviation SA, OMV Petrom Gas SRL, Tasbulat Oil Corporation LLP, Kom Munai LLP, among others.
SNP shares are distributed among 4 categories:
- OMV AKTIENGESELLSCHAFT – 51.1568 %
- Legal entities – 24.7578 %
- ROMANIAN STATE THROUGH MINISTRY OF ENERGY – 20.6980 %
- Individuals – 3.3873 %
The top 3 shareholders own 73.33% of the company, while the top 5 shareholders are:
- OMV Aktiengesellschaft– 50.1%
- Government of Romania – 20.3%
- Franklin Templeton Investment Management Ltd. (Romania) – 3.93%
- The Vanguard Group, Inc. - 0.76%
- Norges Bank Investment Management - 0.61%
SNP shares - Fundamental Analysis and Financial Ratings
See the latest OMV PETROM S.A. (BVB: SNP) stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions.
Valuation
Is SNP undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
- SNP is good value based on its Price-To-Earnings Ratio (3.2x) compared to the peer average (6.4x) and to the European Oil and Gas industry average (5.1x).
- SNP is a good value based on its Price-To-Earnings Ratio (3.2x) compared to the estimated Fair Price-To-Earnings Ratio (4.7x).
- SNP's target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
Future Growth
OMV Petrom's earnings are forecast to decline at an annual rate of -20.5% and its revenue is expected to decline at -9.5% annually. ROE is forecast to grow 10.4% each year. Analyst coverage for OMV Petrom stock is good.
- SNP's Earnings vs Savings Rate are forecast to decline over the next 3 years (-20.5% per year).
- Earnings vs Market: SNP's Earnings vs Market are forecast to decline over the next 3 years (-20.5% per year).
- SNP's High Growth Earnings are forecast to decline over the next 3 years.
- SNP's Revenue vs Market is expected to decline over the next 3 years (-9.5% per year).
- SNP's High Growth Revenue is forecast to decline over the next 3 years (-9.5% per year).
Past Performance
How has OMV Petrom performed over the past 5 years?
- SNP has high-quality earnings.
- SNP's current net profit margins (18.4%) are higher than last year (11.9%).
- SNP's earnings have grown by 18.7% per year over the past 5 years.
- SNP's earnings growth over the past year (259.6%) exceeds its 5-year average (18.7% per year).
- SNP earnings growth over the past year (259.6%) exceeded the Oil and Gas industry's 99.2%.
- SNP's Return on Equity (25.4%) is considered high.
Financial Health
How is OMV Petrom's financial position?
- SNP's short-term assets (RON25.3B) exceed its short-term liabilities (RON8.9B)
- SNP's short-term assets (RON25.3B) exceed its long-term liabilities (RON8.2B).
- SNP has more cash than its total debt.
- SNP's debt-to-equity ratio has reduced from 3.1% to 0.3% over the past 5 years.
- SNP's debt is well covered by operating cash flow (8222.7%).
- SNP earns more interest than it pays, so coverage of interest payments is not a concern.
Dividend
OMV Petrom is a dividend-paying company with a current yield of 7.6% that is well covered by earnings. The next payment date is on 07 Jun 2023 with an ex-dividend date of 12 May 2023.
- OMV Petrom's dividend payments have been volatile in the past 10 years.
- SNP's dividend payments have increased over the past 10 years.
- SNP's dividend (7.57%) is higher than the bottom 25% of dividend payers in the RO market (2.81%).
- SNP's dividend (7.57%) is low compared to the top 25% of dividend payers in the RO market (8.69%).
- With its reasonably low cash payout ratio (30.8%), OMV Petrom's dividend payments are well covered by cash flows.
SNP Shares Price Forecast
What is the analyst 12-month OMV Petrom shares price forecast, and do we have any statistical confidence in the consensus price target from analysts?
According to simplywall.st, the SNP 12-month target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
The analyst followed by stockpedia.com consensus target price for shares in OMV Petrom SA is RON0.57. That is 14.46% above the last closing price of RON0.50.
Trading Economics forecast OMV Petrom shares to be priced at 0.48 by the end of this quarter and at 0.44 in one year, according to Trading Economics global macro models projections and analysts expectations.
There are no 5-year SNP shares price forecasts and price predictions.
Important: When considering OMV Petrom's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose.
OMV Petrom Shares - Technical Analysis
OMV shares are in a sideway range since the mid of 2021 as seen in the daily OMV Petrom (BVB: SNP) chart below.
However, signs of a resume in the long-term bullish trend might be in place. The breakout followed by a consolidation above the 0.4730 area, previous resistance, and actual support, might open the way to a new local higher high, above the 0.5085 – 0.5100 area.
>> Learn more about technical analysis with our free trading courses for beginners.
How to Invest in OMV Petrom
Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started.
For most people, stock market investing means choosing among these two investment types:
Individual OMV Petrom (BVB: SNP) shares
If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research.
If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day.
Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets.
Individual OMV AG (VIE: OMV) shares
OMV AG is the leading oil and gas group in central Europe listed on the Vienna Stock Exchange (WBAG). Net sales break down by activity as follows:
- refining and distribution of hydrocarbons (58.1%). At the end of 2021, the group had 3 refineries located in Austria, Germany and Romania, and 2,088 filling stations in Europe;
- manufacturing of chemical products (26%): advanced polyolefins, base chemicals, fertilizers, and plastics;
- exploration and production of oil and gas (15%): 486,000 barrels of crude oil and Liquefied Natural Gas (LNG) produced per day in 2021;
- autres (0,9%).
Net sales break down geographically as follows: Austria (11.9%), Germany (19%), Romania (9.9%), Norway (2.2%), Europe (47.5%), United Arab Emirates (1.8%), Russia (1.4%), New Zealand (1%) and other (5.3%).
With CAPEX.com you can trade CFDs on OMV AG shares with low spread and zero commission.
ETFs with SNP holdings
OMV Petrom (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies.
If you want an ETF with SNP representation, you might consider iShares MSCI Frontier and Select ETF. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management.
The fund can be suitable for Romania and foreign investors who want liquid and diversified exposure to the top 7 companies listed on the Bucharest Stock Exchange: Banca Transilvania, Petrom, Romgaz, BRD, Transgaz, Electrica, si Teraplast.
Why invest in SNP Shares via FM?
With net assets of almost $1B, The iShares MSCI Frontier and Select EM ETF (FM) is the largest exchange-traded-fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.
- Exposure to frontier market stocks and smaller size emerging market stocks with an emphasis on tradability and investability of the underlying constituents
- One-click access to a virtually untapped investment portfolio with a Bucharest Stock Exchange and BET index exposure.
- Use to seek long-term growth and diversification
How to Get Started with CAPEX.com
Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like CAPEX.com:
- Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account.
- Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity.
- Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies.
- Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Frontier and Select EM ETF”.
When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.
However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.
With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership.
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Sources:
OMV Petrom (BVB:SNP) - Stock Price, News & Analysis - Simply Wall St
BVB - Actiuni SNP OMV PETROM S.A.
OMV Petrom SA Share Price - BSE:SNP Stock Research | Stockopedia
OMV Petrom | SNP - Stock Price | Live Quote | Historical Chart (tradingeconomics.com)
FAQs
Why do investors buy SNP shares?
Investors will buy SNP shares to:
- Make a profit from the SNP share price rising
- Receive an income from dividends if the company pays them
- Benefit from the effects of compounding
Investors should be aware they might get back less returns than they initially invested.
What is the SNP shares price forecast for 2023 and beyond?
OMV Petrom share is forecasted to be priced at 0.48 by the end of this quarter and at 0.44 in one year, according to Trading Economics global macro models projections and analysts’ expectations.
Should you invest in SNP shares in 2023?
Whether you buy SNP shares directly or invest in an ETF with SNP representation is a personal decision you should take depending on your risk tolerance and investing strategy. You should do your own research to develop an informed view of the market. Always make sure to do your own research. And never invest money you cannot afford to lose.
What is the PE ratio of OMV Petrom?
The OMV Petrom SA PE ratio based on its reported earnings over the past 12 months is 5.07.
What are the analyst and agencies recommendations for OMV Petrom SA?
The overall consensus recommendation for OMV Petrom SA is Strong Buy.
What is the OMV Petrom SA dividend yield?
OMV Petrom SA has a current dividend yield of 7.6%.
How do I buy OMV Petrom SA shares?
To buy shares in OMV Petrom SA you'll need a share-dealing account with an online stockbroker offering stocks listed on the Bucharest Stock Exchange. Once you have opened your account and transferred funds into it, you'll be able to search and select shares to buy and sell.