Obsidian Energy Ltd.
Obsidian Energy Ltd. Fundamental Analysis
Obsidian Energy Ltd. (OBE) shows moderate financial fundamentals with a PE ratio of 22.43, profit margin of 5.85%, and ROE of 2.52%. The company generates $0.6B in annual revenue with strong year-over-year growth of 28.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OBE's fundamental strength across five key dimensions:
Efficiency Score
WeakOBE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOBE trades at attractive valuation levels.
Growth Score
ModerateOBE shows steady but slowing expansion.
Financial Health Score
ModerateOBE shows balanced financial health with some risks.
Profitability Score
WeakOBE struggles to sustain strong margins.
Key Financial Metrics
Is OBE Expensive or Cheap?
P/E Ratio
OBE trades at 22.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OBE's PEG of 0.14 indicates potential undervaluation.
Price to Book
The market values Obsidian Energy Ltd. at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.38 times EBITDA. This is generally considered low.
How Well Does OBE Make Money?
Net Profit Margin
For every $100 in sales, Obsidian Energy Ltd. keeps $5.85 as profit after all expenses.
Operating Margin
Core operations generate 15.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.52 in profit for every $100 of shareholder equity.
ROA
Obsidian Energy Ltd. generates $1.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Obsidian Energy Ltd. generates strong operating cash flow of $236.01M, reflecting robust business health.
Free Cash Flow
Obsidian Energy Ltd. generates weak or negative free cash flow of $-62.43M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.93 in free cash annually.
FCF Yield
OBE converts -7.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.54
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How OBE Stacks Against Its Sector Peers
| Metric | OBE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.43 | 19.95 | Worse (Expensive) |
| ROE | 2.52% | 963.00% | Weak |
| Net Margin | 5.85% | -48347.00% (disorted) | Weak |
| Debt/Equity | 0.16 | -0.54 (disorted) | Distorted |
| Current Ratio | 0.54 | 4.82 | Weak Liquidity |
| ROA | 1.90% | -2296.00% (disorted) | Weak |
OBE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Obsidian Energy Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
93.16%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
75.86%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
350.83%
Industry Style: Cyclical, Value, Commodity
High Growth