OBSIDIAN ENERGY LTD (OBE.CA) Stock Fundamental Analysis
TSX:OBE - Toronto Stock Exchange - CA6744822033 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to OBE. OBE was compared to 215 industry peers in the Oil, Gas & Consumable Fuels industry. While OBE has a great profitability rating, there are quite some concerns on its financial health. OBE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OBE has reported negative net income.
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.
In the past 5 years OBE always reported a positive cash flow from operatings.
1.2 Ratios
OBE's Return On Assets of 4.85% is fine compared to the rest of the industry. OBE outperforms 71.57% of its industry peers.
OBE has a Return On Equity of 6.84%. This is comparable to the rest of the industry: OBE outperforms 54.90% of its industry peers.
With a decent Return On Invested Capital value of 6.12%, OBE is doing good in the industry, outperforming 71.08% 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 7.58%.
The last Return On Invested Capital (6.12%) for OBE is well below the 3 year average (10.85%), which needs to be investigated, but indicates that OBE had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 6.84% | ||
| ROIC | 6.12% |
ROA(3y)23.51%
ROA(5y)-10.19%
ROE(3y)37.34%
ROE(5y)-39.81%
ROIC(3y)10.85%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 16.52%, OBE is in the better half of the industry, outperforming 74.02% of the companies in the same industry.
OBE has a Operating Margin of 24.79%. This is in the better half of the industry: OBE outperforms 75.98% of its industry peers.
In the last couple of years the Operating Margin of OBE has grown nicely.
With an excellent Gross Margin value of 71.08%, OBE belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
OBE's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.79% | ||
| PM (TTM) | 16.52% | ||
| GM | 71.08% |
OM growth 3Y79.24%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.61%
GM growth 5Y3.11%
2. Health
2.1 Basic Checks
OBE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OBE has been reduced compared to 1 year ago.
OBE has more shares outstanding than it did 5 years ago.
OBE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.68, we must say that OBE is in the distress zone and has some risk of bankruptcy.
OBE has a Altman-Z score of 0.68. This is comparable to the rest of the industry: OBE outperforms 51.96% of its industry peers.
OBE has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.18, OBE is doing good in the industry, outperforming 61.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.97
WACC6.29%
2.3 Liquidity
OBE has a Current Ratio of 0.45. 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 Current ratio of 0.45. This is amonst the worse of the industry: OBE underperforms 80.88% of its industry peers.
OBE has a Quick Ratio of 0.45. 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 0.45. This is amonst the worse of the industry: OBE underperforms 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 |
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%.
OBE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.17%.
OBE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.11% yearly.
EPS 1Y (TTM)-310.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1002.95%
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y32.96%
Revenue growth 5Y10.11%
Sales Q2Q%27.15%
3.2 Future
Based on estimates for the next years, OBE will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.54% on average per year.
Based on estimates for the next years, OBE will show a decrease in Revenue. The Revenue will decrease by -2.86% on average per year.
EPS Next Y98.17%
EPS Next 2Y66.96%
EPS Next 3Y-13.54%
EPS Next 5YN/A
Revenue Next Year-8.9%
Revenue Next 2Y-1.81%
Revenue Next 3Y-2.86%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for OBE. In the last year negative earnings were reported.
OBE is valuated cheaply with a Price/Forward Earnings ratio of 2.05.
97.55% of the companies in the same industry are more expensive than OBE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of OBE to the average of the S&P500 Index (22.65), we can say OBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OBE indicates a rather cheap valuation: OBE is cheaper than 94.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.18 |
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.
The decent profitability rating of OBE may justify a higher PE ratio.
OBE's earnings are expected to decrease with -13.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y66.96%
EPS Next 3Y-13.54%
5. Dividend
5.1 Amount
OBE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:OBE (2/25/2025, 7:00:00 PM)
7.41
-0.91 (-10.94%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners25.43%
Inst Owner ChangeN/A
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap545.97M
Analysts80
Price Target12.65 (70.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-57.61%
Min EPS beat(2)-60.77%
Max EPS beat(2)-54.46%
EPS beat(4)0
Avg EPS beat(4)-58.11%
Min EPS beat(4)-79.79%
Max EPS beat(4)-37.43%
EPS beat(8)1
Avg EPS beat(8)102.78%
EPS beat(12)3
Avg EPS beat(12)78.19%
EPS beat(16)7
Avg EPS beat(16)383.41%
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)-11.43%
PT rev (3m)-11.43%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)12.11%
EPS NY rev (3m)8.3%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 2.05 | ||
| P/S | 0.77 | ||
| P/FCF | N/A | ||
| P/OCF | 1.5 | ||
| P/B | 0.32 | ||
| P/tB | 0.32 | ||
| EV/EBITDA | 2.18 |
EPS(TTM)-2.74
EYN/A
EPS(NY)3.62
Fwd EY48.8%
FCF(TTM)-1.08
FCFYN/A
OCF(TTM)4.95
OCFY66.78%
SpS9.57
BVpS23.11
TBVpS23.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 6.84% | ||
| ROCE | 8.13% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.12% | ||
| ROICexgc | 6.12% | ||
| OM | 24.79% | ||
| PM (TTM) | 16.52% | ||
| GM | 71.08% | ||
| FCFM | N/A |
ROA(3y)23.51%
ROA(5y)-10.19%
ROE(3y)37.34%
ROE(5y)-39.81%
ROIC(3y)10.85%
ROIC(5y)N/A
ROICexc(3y)10.89%
ROICexc(5y)N/A
ROICexgc(3y)10.89%
ROICexgc(5y)N/A
ROCE(3y)14.43%
ROCE(5y)N/A
ROICexcg growth 3Y39.83%
ROICexcg growth 5YN/A
ROICexc growth 3Y39.83%
ROICexc growth 5YN/A
OM growth 3Y79.24%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.61%
GM growth 5Y3.11%
F-Score4
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 189.14% | ||
| Cap/Sales | 62.93% | ||
| Interest Coverage | 6.48 | ||
| Cash Conversion | 89.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.45 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.68 |
F-Score4
WACC6.29%
ROIC/WACC0.97
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)38.8%
Cap/Sales(5y)32.57%
Profit Quality(3y)28.69%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-310.93%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-1002.95%
EPS Next Y98.17%
EPS Next 2Y66.96%
EPS Next 3Y-13.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.17%
Revenue growth 3Y32.96%
Revenue growth 5Y10.11%
Sales Q2Q%27.15%
Revenue Next Year-8.9%
Revenue Next 2Y-1.81%
Revenue Next 3Y-2.86%
Revenue Next 5YN/A
EBIT growth 1Y-14.85%
EBIT growth 3Y138.32%
EBIT growth 5YN/A
EBIT Next Year93.7%
EBIT Next 3Y39.85%
EBIT Next 5YN/A
FCF growth 1Y-162.94%
FCF growth 3Y38.98%
FCF growth 5YN/A
OCF growth 1Y-7.27%
OCF growth 3Y64.38%
OCF growth 5Y28.93%