Origin Energy (ASX: ORG)Share Price and News

About Origin Energy

Origin Energy is one of Australia’s leading energy companies, providing electricity, gas, and renewable energy solutions to residential, business, and industrial customers. Origin operates across multiple segments, including energy retailing, exploration and production, and power generation, making it a key player in Australia’s energy sector.

It is well known for its commitment to sustainability, with increasing investments in solar, wind, and battery storage technology. The company also maintains a global footprint with interests in gas fields, predominantly in Australia and New Zealand, contributing to its diversified revenue base. Origin’s innovative approach positions it uniquely in the competitive Australian energy market.

Origin Energy Company History

Origin Energy was established in 2000 as a result of the demerger of Boral Limited’s energy division. The company’s growth accelerated through a series of strategic acquisitions, including the purchase of Envestra in 2013, which strengthened its position in the Australian gas distribution market.

Over the years, Origin has expanded its operations to cover retail, generation, and exploration sectors. The company’s strong track record includes its ongoing focus on energy innovation, alongside a significant role in the Australian energy transition. In 2018, Origin made headlines for its involvement in the renewable energy space, notably through its investments in wind farms and large-scale solar projects.

The company has focused heavily on reducing its carbon footprint and increasing its renewable energy capacity to meet long-term sustainability goals. As of today, Origin Energy remains a significant player in Australia’s energy sector, with plans aimed at reinforcing its renewable energy assets.

Future Outlook of Origin Energy (ASX: ORG)

Origin Energy’s outlook remains positive as it navigates the rapidly evolving energy landscape. Analysts for FY2025 are cautiously optimistic about the company’s revenue and earnings growth, projecting a solid 3-4% growth in earnings per share (EPS) for the upcoming year.

However, some forecasts suggest a decline of approximately 10.2% per annum in EPS due to the challenges faced in the traditional energy market. To mitigate these challenges, Origin is investing heavily in its renewable energy portfolio, including the Yanco Delta wind farm in New South Wales, which features a 1.5 GW wind farm and an 800 MWh battery storage system.

These investments are part of a broader strategy to increase the company’s capacity in solar, wind, and energy storage technologies. The company’s ability to transition from traditional fossil fuels to renewable energy is crucial for its future success. Origin’s strategy aligns with national and global decarbonisation goals, positioning it to meet the growing demand for cleaner energy solutions.

However, Origin’s performance is also tied to government policies and regulations surrounding the energy sector, particularly those related to carbon emissions and renewable energy incentives. Moreover, fluctuations in energy prices, especially natural gas, pose a risk, as the company is highly exposed to the energy price market. Looking forward, Origin is expected to continue making strategic acquisitions, which will help consolidate its market position.

The company’s focus on expanding its renewable energy and storage solutions is expected to have long-term positive impacts on its financial position, further solidifying its role in Australia’s clean energy future.

Is ORG a Good Stock to Buy?

When considering whether to invest in Origin Energy, several key factors should be evaluated. The company's stock has shown relative stability, reflecting consistent growth in its core businesses. While the stock isn't currently undervalued, its strong prospects for future growth, particularly in the renewable energy sector, suggest that it could be a good long-term investment.

As of 2025, the company’s price-to-earnings (P/E) ratio is 13.36, which is slightly below the industry average of 15.72, indicating a reasonable valuation. In addition to its valuation, Origin Energy offers an attractive dividend yield of approximately 5.6%, making it appealing to income-focused investors. The company has a history of steady dividends, positioning it as a reliable option for those seeking both capital growth and income.

However, the stock carries moderate risks, primarily due to market volatility in the energy sector and regulatory uncertainty. Despite this, the company’s push toward renewable energy should offer some resilience as the global energy market transitions to cleaner sources. It’s important to keep in mind the company’s exposure to fluctuating energy prices and potential regulatory changes. Origin Energy also presents strong growth potential, particularly as it continues to invest in renewable energy projects and energy storage. The company’s focus on expanding its renewable assets positions it well for long-term growth, especially as the global energy landscape shifts toward sustainability.

Several institutional investors and analysts are bullish on the company’s long-term growth prospects, with many recommending it as a solid buy for those seeking exposure to both traditional and renewable energy markets. However, it’s worth noting that the mixed outlook for EPS growth suggests caution for near-term investments. Given these factors, Origin Energy remains a strong investment candidate for those looking to invest in the evolving Australian energy market, particularly with its ongoing diversification into clean energy solutions.