OBSIDIAN ENERGY LTD (OBE.CA)
CA6744822033 - Common Stock
OBE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 220 industry peers in the Oil, Gas & Consumable Fuels industry. OBE has an excellent profitability rating, but there are concerns on its financial health. OBE may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
OBE had positive earnings in the past year.
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.
In the past 5 years OBE always reported a positive cash flow from operatings.
1.2 Ratios
OBE has a better Return On Assets (4.50%) than 71.96% of its industry peers.
Looking at the Return On Equity, with a value of 6.45%, OBE is in line with its industry, outperforming 56.07% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.84%, OBE is doing good in the industry, outperforming 68.69% 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 7.79%.
The last Return On Invested Capital (5.84%) 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 | 4.5% | ||
| ROE | 6.45% | ||
| ROIC | 5.84% |
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 15.63%, OBE is in the better half of the industry, outperforming 72.43% of the companies in the same industry.
With a decent Operating Margin value of 24.20%, OBE is doing good in the industry, outperforming 70.56% of the companies in the same industry.
In the last couple of years the Operating Margin of OBE has grown nicely.
OBE has a better Gross Margin (71.72%) than 85.05% of its industry peers.
In the last couple of years the Gross Margin of OBE has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.2% | ||
| PM (TTM) | 15.63% | ||
| GM | 71.72% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OBE is creating value.
The number of shares outstanding for OBE has been reduced compared to 1 year ago.
Compared to 5 years ago, OBE has more shares outstanding
Compared to 1 year ago, OBE has an improved debt to assets ratio.
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 (0.68) which is comparable to the rest of the industry.
OBE has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
OBE has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.68 |
ROIC/WACC0.99
WACC5.89%
2.3 Liquidity
A Current Ratio of 0.49 indicates that OBE may have some problems paying its short term obligations.
With a Current ratio value of 0.49, OBE is not doing good in the industry: 80.37% of the companies in the same industry are doing better.
OBE has a Quick Ratio of 0.49. This is a bad value and indicates that OBE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.49, OBE is doing worse than 78.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
OBE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -84.44%.
Looking at the last year, OBE shows a small growth in Revenue. The Revenue has grown by 1.60% in the last year.
The Revenue has been growing by 10.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-84.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%109.09%
Revenue 1Y (TTM)1.6%
Revenue growth 3Y32.96%
Revenue growth 5Y10.11%
Sales Q2Q%36.53%
3.2 Future
The Earnings Per Share is expected to grow by 80.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, OBE will show a small growth in Revenue. The Revenue will grow by 7.42% on average per year.
EPS Next Y128.67%
EPS Next 2Y80.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.17%
Revenue Next 2Y7.42%
Revenue Next 3YN/A
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
Based on the Price/Earnings ratio of 5.97, the valuation of OBE can be described as very cheap.
OBE's Price/Earnings ratio is rather cheap when compared to the industry. OBE is cheaper than 89.72% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.45, OBE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.88, the valuation of OBE can be described as very cheap.
Based on the Price/Forward Earnings ratio, OBE is valued cheaply inside the industry as 97.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, OBE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 1.88 |
4.2 Price Multiples
OBE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. OBE is cheaper than 93.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.54 |
4.3 Compensation for Growth
OBE's 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.
A more expensive valuation may be justified as OBE's earnings are expected to grow with 80.27% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y80.27%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for OBE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OBSIDIAN ENERGY LTD
TSX:OBE (9/18/2024, 7:00:00 PM)
7.94
+0.12 (+1.53%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap603.48M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 1.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 6.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.2% | ||
| PM (TTM) | 15.63% | ||
| GM | 71.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-84.44%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y128.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.6%
Revenue growth 3Y32.96%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y