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OBSIDIAN ENERGY LTD (OBE) Stock Fundamental Analysis

NYSEARCA:OBE - NYSE Arca - CA6744822033 - Common Stock - Currency: USD

5.99  -0.15 (-2.44%)

After market: 6.01 +0.02 (+0.33%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to OBE. OBE was compared to 210 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 bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

OBE had positive 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.
OBE Yearly Net Income VS EBIT VS OCF VS FCFOBE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -1B -2B

1.2 Ratios

OBE has a Return On Assets (4.85%) which is comparable to the rest of the industry.
OBE's Return On Equity of 6.84% is on the low side compared to the rest of the industry. OBE is outperformed by 61.76% of its industry peers.
OBE has a Return On Invested Capital (6.12%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for OBE is significantly below the industry average of 28.74%.
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 RankSector 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
OBE Yearly ROA, ROE, ROICOBE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150 -200

1.3 Margins

Looking at the Profit Margin, with a value of 16.52%, OBE is in line with its industry, outperforming 57.84% of the companies in the same industry.
OBE has a Operating Margin (24.79%) which is comparable to the rest of the industry.
OBE's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 71.08%, OBE is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
In the last couple of years the Gross Margin of OBE has grown nicely.
Industry RankSector 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%
OBE Yearly Profit, Operating, Gross MarginsOBE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 -200

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OBE 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.
OBE Yearly Shares OutstandingOBE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
OBE Yearly Total Debt VS Total AssetsOBE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 0.75, 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 0.75, OBE is doing worse than 63.73% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that OBE is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, OBE is doing good in the industry, outperforming 69.12% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF N/A
Altman-Z 0.75
ROIC/WACC0.98
WACC6.27%
OBE Yearly LT Debt VS Equity VS FCFOBE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

2.3 Liquidity

A Current Ratio of 0.45 indicates that OBE may have some problems paying its short term obligations.
OBE has a worse Current ratio (0.45) than 90.69% of its industry peers.
A Quick Ratio of 0.45 indicates that OBE may have some problems paying its short term obligations.
OBE has a worse Quick ratio (0.45) than 87.75% of its industry peers.
Industry RankSector Rank
Current Ratio 0.45
Quick Ratio 0.45
OBE Yearly Current Assets VS Current LiabilitesOBE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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2

3. Growth

3.1 Past

The earnings per share for OBE have decreased strongly by -82.67% in the last year.
OBE shows a small growth in Revenue. In the last year, the Revenue has grown by 3.16%.
The Revenue has been growing by 10.11% on average over the past years. This is quite good.
EPS 1Y (TTM)-82.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
Revenue 1Y (TTM)3.16%
Revenue growth 3Y32.96%
Revenue growth 5Y10.11%
Sales Q2Q%22.3%

3.2 Future

OBE is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -13.54% yearly.
OBE is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.86% yearly.
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.
OBE Yearly Revenue VS EstimatesOBE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
OBE Yearly EPS VS EstimatesOBE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 -50 -100 -150

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 5.87, which indicates a rather cheap valuation of OBE.
Compared to the rest of the industry, the Price/Earnings ratio of OBE indicates a rather cheap valuation: OBE is cheaper than 84.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OBE to the average of the S&P500 Index (29.62), we can say OBE is valued rather cheaply.
A Price/Forward Earnings ratio of 2.35 indicates a rather cheap valuation of OBE.
Based on the Price/Forward Earnings ratio, OBE is valued cheaper than 99.02% of the companies in the same industry.
OBE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
Industry RankSector Rank
PE 5.87
Fwd PE 2.35
OBE Price Earnings VS Forward Price EarningsOBE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

93.14% of the companies in the same industry are more expensive than OBE, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.38
OBE Per share dataOBE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 cheap valuation may be justified as OBE's earnings are expected to decrease with -13.54% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y66.96%
EPS Next 3Y-13.54%

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0

5. Dividend

5.1 Amount

OBE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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OBSIDIAN ENERGY LTD

NYSEARCA:OBE (2/21/2025, 8:04:02 PM)

After market: 6.01 +0.02 (+0.33%)

5.99

-0.15 (-2.44%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-31 2024-10-31/dmh
Earnings (Next)02-25 2025-02-25/amc
Inst Owners25.43%
Inst Owner Change-81.15%
Ins Owners2.62%
Ins Owner ChangeN/A
Market Cap441.34M
Analysts80
Price Target9.08 (51.59%)
Short Float %6.58%
Short Ratio11.12
Dividend
Industry RankSector 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)-9.17%
PT rev (3m)-10.83%
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 RankSector Rank
PE 5.87
Fwd PE 2.35
P/S 0.89
P/FCF N/A
P/OCF 1.72
P/B 0.37
P/tB 0.37
EV/EBITDA 2.38
EPS(TTM)1.02
EY17.03%
EPS(NY)2.55
Fwd EY42.52%
FCF(TTM)-0.76
FCFYN/A
OCF(TTM)3.49
OCFY58.19%
SpS6.74
BVpS16.28
TBVpS16.28
PEG (NY)0.06
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.75
F-Score4
WACC6.27%
ROIC/WACC0.98
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)-82.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%40%
EPS Next Y98.17%
EPS Next 2Y66.96%
EPS Next 3Y-13.54%
EPS Next 5YN/A
Revenue 1Y (TTM)3.16%
Revenue growth 3Y32.96%
Revenue growth 5Y10.11%
Sales Q2Q%22.3%
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%