With nearly 20% YTD gains as of mid-April and over 40% for the last 12 months, OMV Petrom shares became even more 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.
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 the expectations for SNP shares in terms of future growth?
- 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.
Company’s business activities are divided into 3 segments:
Upstream
In the Upstream segment, OMV Petrom SA is involved in onshore and offshore exploration activities and the production of crude oil and natural gas.
Downstream Gas
In the Downstream Gas segment, it is active in the distribution of gas and electrical energy generation and distribution.
Downstream Oil
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 (RON0.69) is trading below simplywall.st estimate of fair value (RON1.7) by more than 20%.
- SNP is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (7.7x).
- SNP is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the European Oil and Gas industry average (7.2x).
- SNP is expensive based on its Price-To-Earnings Ratio (10.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).
Future Growth
OMV Petrom is forecast to grow earnings and revenue by 7.3% and 2% per annum respectively. EPS is expected to grow by 8.2% per annum. Return on equity is forecast to be 10.6% in 3 years.
- SNP's forecast earnings growth (7.3% per year) is above the savings rate (5.5%).
- SNP's earnings (7.3% per year) are forecast to grow faster than the RO market (1% per year).
- SNP's earnings are forecast to grow, but not significantly.
- SNP's revenue (2% per year) is forecast to grow faster than the RO market (0.06% per year).
- SNP's revenue (2% per year) is forecast to grow slower than 20% per year.
- SNP's Return on Equity is forecast to be low in 3 years time (10.6%).
Performance
How has OMV Petrom performed over the past 5 years?
OMV Petrom has been growing earnings at an average annual rate of 17.9%, while the Oil and Gas industry saw earnings growing at 27% annually. Revenues have been growing at an average rate of 20% per year. OMV Petrom's return on equity is 10.2%, and it has net margins of 11.1%.
- SNP has high-quality earnings.
- SNP's current net profit margins (11.1%) are lower than last year (18.4%).
- SNP's earnings have grown by 17.9% per year over the past 5 years.
- SNP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
- SNP had negative earnings growth (-60.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (-1.8%).
- SNP's Return on Equity (10.2%) is considered low.
Financial Health
How is OMV Petrom's financial position?
OMV Petrom has a total shareholder equity of RON39.4B and total debt of RON110.1M, which brings its debt-to-equity ratio to 0.3%. Its total assets and total liabilities are RON58.2B and RON18.8B respectively. OMV Petrom's EBIT is RON4.8B making its interest coverage ratio -16.6. It has cash and short-term investments of RON15.2B.
- SNP's short-term assets (RON22.8B) exceed its short-term liabilities (RON 8.5B)
- SNP's short-term assets (RON 22.8B) exceed its long-term liabilities (RON 10.3B).
- SNP has more cash than its total debt.
- SNP's debt-to-equity ratio has reduced from 1.8% to 0.3% over the past 5 years.
- SNP's debt is well covered by operating cash flow (9190.3%).
- 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 12.6% that is well covered by earnings. Dividend yield forecast in 3Y is 10.2%.
- 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 (12.6%) is higher than the bottom 25% of dividend payers in the RO market (2.25%).
- SNP's dividend (12.6%) is in top 25% of dividend payers in the RO market (6.64%).
- With its reasonably low payout ratio (63.8%), OMV Petrom's dividend payments are well covered by earnings.
- At its current cash payout ratio (98%), SNP's dividend payments are not 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?
Source: simplywall.st
According to simplywall.st, the SNP 12-month target price is less than 20% higher than the current share price.
The analyst followed by stockopedia.com consensus target price for shares in OMV Petrom SA is RON0.69. That is 0.44% above the last closing price of RON0.69.
Source: investing.com
Investing.com analysts' 12-Month Price High Target is 0.93 RON, while the Average and Low Price targets are 0.76, respectively 0.65 RON.
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
From a technical perspective, OMV shares are moving consolidating after a 2024 bull-run. Price reached an all-time high on 10th of April followed by small corrections without any technical downside pressure evidence.
Source: bvb.ro
Although, price is currently controlled by the bulls and upside trend remains intact, record highs could always be accompanied by the risk of some long trades closure that could result in price corrections. Near term support level is 0.67 RON, while next resistance is the recent all-time high, respectively 0.69 RON.
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 shares (BSE: SNP)
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 unpredictable 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 another top 11 companies listed on the Bucharest Stock Exchange:
Why invest in SNP Shares via FM?
With net assets of almost $450M, 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.
Free resources
Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader.
Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
Sources:
https://www.omvpetrom.com/en/investors
https://simplywall.st/stocks/ro/energy/bvb-snp/omv-petrom-shares
https://www.investing.com/equities/omv-petrom-s.a
https://m.bvb.ro/FinancialInstruments/Details/FinancialInstrumentsDetails.aspx?s=SNP
https://www.stockopedia.com/share-prices/omv-petrom-sa-BSE:SNP/
https://tradingeconomics.com/snp:ro