Obsidian Energy Ltd. (OBE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Canadian Natural Resources Ltd.

Topaz Energy Corp.

ARC Resources Ltd.

Parex Resources, Inc.

MEG Energy Corp.

Advantage Energy Ltd.

Cardinal Energy Ltd.

Obsidian Energy Ltd.

Tourmaline Oil Corp.

Crew Energy, Inc.

Vermilion Energy, Inc.

Why is Obsidian Energy Ltd. ?

With a fall in EPS of -132.36%, the company declared Very Negative results in Jun 25

ROCE(HY) Lowest at -14.4%
INTEREST COVERAGE RATIO(Q) Lowest at 1,115
RAW MATERIAL COST(Y) Grown by 81.36% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 17.48%, its profits have risen by 77.4% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Obsidian Energy Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Obsidian Energy Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Obsidian Energy Ltd.

53.39%

26.90

51.43%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.67%

EBIT Growth (5y)

75.69%

EBIT to Interest (avg)

3.94

Debt to EBITDA (avg)

1.36

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.37

Tax Ratio

23.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

26.68%

ROCE (avg)

9.84%

ROE (avg)

13.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.57

EV to EBIT

12.66

EV to EBITDA

3.63

EV to Capital Employed

0.62

EV to Sales

1.80

PEG Ratio

Dividend Yield

ROCE (Latest)

4.89%

ROE (Latest)

4.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -34.3% (YoY

-27What is not working for the Company

NET SALES(Q)

At CAD 114.8 MM has Fallen at -25.3%

OPERATING CASH FLOW(Y)

Lowest at CAD 235.7 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 548.91

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.51 times

INTEREST(Q)

Highest at CAD 9.2 MM

NET PROFIT(Q)

At CAD 27.1 MM has Fallen at -35.35%

Here's what is working for Obsidian Energy Ltd.

Raw Material Cost

Fallen by -34.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Obsidian Energy Ltd.

Net Sales

At CAD 114.8 MM has Fallen at -25.3%

over average net sales of the previous four periods of CAD 153.67 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CAD MM)

Interest

At CAD 9.2 MM has Grown at 39.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 548.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CAD 235.7 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

Highest at CAD 9.2 MM

in the last five periods and Increased by 39.39% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

At CAD 27.1 MM has Fallen at -35.35%

over average net sales of the previous four periods of CAD 41.92 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 7.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio