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

Cardinal Energy Ltd.

Topaz Energy Corp.

Parex Resources, Inc.

Obsidian Energy Ltd.

Canadian Natural Resources Ltd.

MEG Energy Corp.

Advantage Energy Ltd.

ARC Resources Ltd.

Tourmaline Oil Corp.

Vermilion Energy, Inc.

Crew Energy, Inc.

Why is Obsidian Energy Ltd. ?

Healthy long term growth as Operating profit has grown by an annual rate 36.98%

Flat results in Jun 26

NET PROFIT(9M) At CAD 54.86 MM has Grown at -64.28%
OPERATING CASH FLOW(Y) Lowest at CAD 162 MM
INTEREST(Q) At CAD 6.2 MM has Grown at 16.98%

With ROE of 4.19%, it has a fair valuation with a 0.64 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 68.38%, its profits have fallen by -75%

High Institutional Holdings at 36.45%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 9.47% over the previous quarter.

Market Beating Performance

The stock has generated a return of 68.38% in the last 1 year, much higher than market (S&P/TSX 60) returns of 28.13%

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.

68.38%

39.70

52.54%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.62%

EBIT Growth (5y)

36.98%

EBIT to Interest (avg)

4.37

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.37

Tax Ratio

45.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

26.98%

ROCE (avg)

10.40%

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

0.64

EV to EBIT

17.05

EV to EBITDA

4.54

EV to Capital Employed

0.69

EV to Sales

2.26

PEG Ratio

Dividend Yield

ROCE (Latest)

4.06%

ROE (Latest)

4.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,716.13

RAW MATERIAL COST(Y)

Fallen by -621.56% (YoY

NET SALES(Q)

Highest at CAD 176.1 MM

OPERATING PROFIT(Q)

Highest at CAD 106.4 MM

OPERATING PROFIT MARGIN(Q)

Highest at 60.42 %

EPS(Q)

Highest at CAD 0.61

-10What is not working for the Company

NET PROFIT(9M)

At CAD 54.86 MM has Grown at -64.28%

OPERATING CASH FLOW(Y)

Lowest at CAD 162 MM

INTEREST(Q)

At CAD 6.2 MM has Grown at 16.98%

DEBT-EQUITY RATIO (HY)

Highest at 26.75 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.45 times

Here's what is working for Obsidian Energy Ltd.

Interest Coverage Ratio

Highest at 1,716.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CAD 176.1 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 176.1 MM has Grown at 43.2%

over average net sales of the previous four periods of CAD 122.97 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 106.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 60.42 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CAD 0.61

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -621.56% (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 Profit

At CAD 54.86 MM has Grown at -64.28%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 6.2 MM has Grown at 16.98%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Cash Flow

Lowest at CAD 162 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Highest at 26.75 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 7.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio