OBSIDIAN ENERGY LTD (OBE.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:OBE - CA6744822033 - Common Stock
8.42 CAD
-0.04 (-0.47%)
OBE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 201 industry peers in the Oil, Gas & Consumable Fuels industry. While OBE is still in line with the averages on profitability rating, there are concerns on its financial health. OBE does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year OBE has reported negative net income.
OBE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: OBE reported negative net income in multiple years.
Each year in the past 5 years OBE had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -13.16%, OBE is not doing good in the industry: 63.18% of the companies in the same industry are doing better.
OBE has a Return On Equity of -16.91%. This is in the lower half of the industry: OBE underperforms 60.20% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.35%, OBE belongs to the top of the industry, outperforming 80.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OBE is above the industry average of 6.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.16% | ||
| ROE | -16.91% | ||
| ROIC | 6.35% |
ROA(3y)10.66%
ROA(5y)-3.82%
ROE(3y)14.48%
ROE(5y)-28.26%
ROIC(3y)8.82%
ROIC(5y)8.37%
1.3 Margins
With a decent Operating Margin value of 21.48%, OBE is doing good in the industry, outperforming 76.12% of the companies in the same industry.
In the last couple of years the Operating Margin of OBE has declined.
OBE has a better Gross Margin (68.85%) than 83.08% of its industry peers.
In the last couple of years the Gross Margin of OBE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.48% | ||
| PM (TTM) | N/A | ||
| GM | 68.85% |
OM growth 3Y-12.26%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y2.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), OBE is destroying value.
OBE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for OBE has been increased compared to 5 years ago.
The debt/assets ratio for OBE is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that OBE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, OBE is in the better half of the industry, outperforming 60.20% of the companies in the same industry.
OBE has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
OBE has a Debt to Equity ratio of 0.11. This is in the better half of the industry: OBE outperforms 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.88 |
ROIC/WACC0.72
WACC8.88%
2.3 Liquidity
A Current Ratio of 0.52 indicates that OBE may have some problems paying its short term obligations.
With a Current ratio value of 0.52, OBE is not doing good in the industry: 72.14% of the companies in the same industry are doing better.
OBE has a Quick Ratio of 0.52. This is a bad value and indicates that OBE is not financially healthy enough and could expect problems in meeting its short term obligations.
OBE has a Quick ratio of 0.52. This is in the lower half of the industry: OBE underperforms 66.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
OBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -310.93%.
The Revenue has decreased by -8.93% in the past year.
OBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.38% yearly.
EPS 1Y (TTM)-310.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-43.4%
Revenue 1Y (TTM)-8.93%
Revenue growth 3Y17.6%
Revenue growth 5Y13.38%
Sales Q2Q%-41.35%
3.2 Future
Based on estimates for the next years, OBE will show a very strong growth in Earnings Per Share. The EPS will grow by 31.34% on average per year.
OBE is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -13.77% yearly.
EPS Next Y126.21%
EPS Next 2Y42.07%
EPS Next 3Y31.34%
EPS Next 5YN/A
Revenue Next Year-23%
Revenue Next 2Y-16.77%
Revenue Next 3Y-13.77%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
OBE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 166.73, the valuation of OBE can be described as expensive.
OBE's Price/Forward Earnings is on the same level as the industry average.
OBE is valuated expensively when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 166.73 |
4.2 Price Multiples
97.01% of the companies in the same industry are more expensive than OBE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as OBE's earnings are expected to grow with 31.34% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.07%
EPS Next 3Y31.34%
5. Dividend
5.1 Amount
OBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:OBE (12/31/2025, 7:00:00 PM)
8.42
-0.04 (-0.47%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners24.63%
Inst Owner ChangeN/A
Ins Owners4.16%
Ins Owner ChangeN/A
Market Cap565.15M
Revenue(TTM)642.40M
Net Income(TTM)-237.30M
Analysts74.29
Price Target10.07 (19.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)1.28%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)109.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 166.73 | ||
| P/S | 0.88 | ||
| P/FCF | N/A | ||
| P/OCF | 1.81 | ||
| P/B | 0.4 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 2.12 |
EPS(TTM)-2.74
EYN/A
EPS(NY)0.05
Fwd EY0.6%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)4.65
OCFY55.26%
SpS9.57
BVpS20.9
TBVpS20.9
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.16% | ||
| ROE | -16.91% | ||
| ROCE | 8.45% | ||
| ROIC | 6.35% | ||
| ROICexc | 6.36% | ||
| ROICexgc | 6.36% | ||
| OM | 21.48% | ||
| PM (TTM) | N/A | ||
| GM | 68.85% | ||
| FCFM | N/A |
ROA(3y)10.66%
ROA(5y)-3.82%
ROE(3y)14.48%
ROE(5y)-28.26%
ROIC(3y)8.82%
ROIC(5y)8.37%
ROICexc(3y)8.83%
ROICexc(5y)8.4%
ROICexgc(3y)8.83%
ROICexgc(5y)8.4%
ROCE(3y)11.73%
ROCE(5y)11.13%
ROICexgc growth 3Y-18.98%
ROICexgc growth 5YN/A
ROICexc growth 3Y-18.98%
ROICexc growth 5YN/A
OM growth 3Y-12.26%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.26%
GM growth 5Y2.34%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 158.64% | ||
| Cap/Sales | 49.32% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 92.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.88 |
F-Score6
WACC8.88%
ROIC/WACC0.72
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)47.68%
Cap/Sales(5y)38.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-310.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-43.4%
EPS Next Y126.21%
EPS Next 2Y42.07%
EPS Next 3Y31.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.93%
Revenue growth 3Y17.6%
Revenue growth 5Y13.38%
Sales Q2Q%-41.35%
Revenue Next Year-23%
Revenue Next 2Y-16.77%
Revenue Next 3Y-13.77%
Revenue Next 5YN/A
EBIT growth 1Y-21.1%
EBIT growth 3Y3.18%
EBIT growth 5YN/A
EBIT Next Year13.22%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-106.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.61%
OCF growth 3Y22.12%
OCF growth 5Y36.28%
OBSIDIAN ENERGY LTD / OBE.CA FAQ
Can you provide the ChartMill fundamental rating for OBSIDIAN ENERGY LTD?
ChartMill assigns a fundamental rating of 3 / 10 to OBE.CA.
What is the valuation status for OBE stock?
ChartMill assigns a valuation rating of 2 / 10 to OBSIDIAN ENERGY LTD (OBE.CA). This can be considered as Overvalued.
Can you provide the profitability details for OBSIDIAN ENERGY LTD?
OBSIDIAN ENERGY LTD (OBE.CA) has a profitability rating of 4 / 10.
What is the earnings growth outlook for OBSIDIAN ENERGY LTD?
The Earnings per Share (EPS) of OBSIDIAN ENERGY LTD (OBE.CA) is expected to grow by 126.21% in the next year.
How sustainable is the dividend of OBSIDIAN ENERGY LTD (OBE.CA) stock?
The dividend rating of OBSIDIAN ENERGY LTD (OBE.CA) is 0 / 10 and the dividend payout ratio is 0%.