OBSIDIAN ENERGY LTD (OBE.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:OBE - CA6744822033 - Common Stock

10.04 CAD

+0.22 (+2.24%)

Last: 1/29/2026, 7:00:00 PM

Fundamental Rating

OBE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 206 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 has a expensive valuation and it also scores bad on growth.

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1. Profitability

1.1 Basic Checks

OBE had negative earnings in the past year.
In the past year OBE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: OBE reported negative net income in multiple years.
OBE had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

OBE has a worse Return On Assets (-13.16%) than 61.65% of its industry peers.
OBE has a Return On Equity (-16.91%) which is comparable to the rest of the industry.
With an excellent Return On Invested Capital value of 6.35%, OBE belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OBE is above the industry average of 6.62%.

		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

Looking at the Operating Margin, with a value of 21.48%, OBE is in the better half of the industry, outperforming 77.18% of the companies in the same industry.
In the last couple of years the Operating Margin of OBE has declined.
OBE's Gross Margin of 68.85% is amongst the best of the industry. OBE outperforms 84.47% 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, OBE has more shares outstanding
The debt/assets ratio for OBE is higher compared to a year ago.

2.2 Solvency

OBE has an Altman-Z score of 1.04. This is a bad value and indicates that OBE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of OBE (1.04) is better than 60.19% of its industry peers.
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 69.90% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	1.04

ROIC/WACC0.71

WACC8.9%

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: 70.87% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that OBE may have some problems paying its short term obligations.
With a Quick ratio value of 0.52, OBE is not doing good in the industry: 64.08% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.52
Quick Ratio	0.52

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WACC

Debt/Equity

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Altman-Z score

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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.
Measured over the past years, OBE shows a quite strong growth in Revenue. The Revenue has been growing by 13.38% on average per year.

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 34.07% 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 2Y43.75%

EPS Next 3Y34.07%

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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

OBE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 55.23, which means the current valuation is very expensive for OBE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OBE is on the same level as its industry peers.
OBE is valuated expensively when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	55.23

4.2 Price Multiples

96.12% 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	2.44

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as OBE's earnings are expected to grow with 34.07% in the coming years.