Taking everything into account, OBE scores 3 out of 10 in our fundamental rating. OBE was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. OBE has a bad profitability rating. Also its financial health evaluation is rather negative. OBE has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

OBE had negative 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's Return On Assets of -13.16% is on the low side compared to the rest of the industry. OBE is outperformed by 85.51% of its industry peers.
Looking at the Return On Equity, with a value of -16.91%, OBE is doing worse than 76.81% of the companies in the same industry.
OBE's Return On Invested Capital of 6.35% is in line compared to the rest of the industry. OBE outperforms 58.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OBE is significantly below the industry average of 21.94%.

		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

OBE has a Operating Margin of 21.48%. This is comparable to the rest of the industry: OBE outperforms 59.42% of its industry peers.
In the last couple of years the Operating Margin of OBE has declined.
OBE has a better Gross Margin (68.85%) than 75.85% 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.
OBE has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OBE is higher compared to a year ago.

2.2 Solvency

OBE has an Altman-Z score of 0.95. This is a bad value and indicates that OBE is not financially healthy and even has some risk of bankruptcy.
OBE has a Altman-Z score (0.95) which is in line with its industry peers.
A Debt/Equity ratio of 0.11 indicates that OBE is not too dependend on debt financing.
OBE's Debt to Equity ratio of 0.11 is fine compared to the rest of the industry. OBE outperforms 77.78% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.11
Debt/FCF	N/A
Altman-Z	0.95

ROIC/WACC0.69

WACC9.26%

2.3 Liquidity

OBE has a Current 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.
With a Current ratio value of 0.52, OBE is not doing good in the industry: 84.54% 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.
OBE's Quick ratio of 0.52 is on the low side compared to the rest of the industry. OBE is outperformed by 80.68% of its industry peers.

		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

The earnings per share for OBE have decreased strongly by -310.93% in the last year.
OBE shows a decrease in Revenue. In the last year, the revenue decreased by -8.93%.
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

The Earnings Per Share is expected to grow by 34.07% on average over the next years. This is a very strong growth
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

The Price/Earnings Ratio is negative for OBE. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 50.72, OBE can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, OBE is valued a bit more expensive than 61.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, OBE is valued quite expensively.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	50.72

4.2 Price Multiples

97.58% 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	2.27

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.
A more expensive valuation may be justified as OBE's earnings are expected to grow with 34.07% in the coming years.