OBEObsidian Energy Ltd.
Is the business good?
The checks split: mostly cash-backed earnings (0.8×) and margins steady.
Operating profit is mostly backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 3% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is OBE?
Obsidian Energy Ltd. earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 67%
Operating margin · Oil & Gas E&P median 25% · fiscal year to FY2025
- Cash conversion
- 0.81×
Cash conversion · 0.85× a year ago · most of the operating profit arrived as cash, working capital took the rest
- Share count, year on year
- −5.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 61% |
| FY2021 | 71% |
| FY2022 | 76% |
| FY2023 | 70% |
| FY2024 | 72% |
| FY2025 | 67% |
Details›
- Gross marginfiscal year to FY2025
- 99%
- Operating marginfiscal year to FY2025
- 67%
- Net marginfiscal year to FY2025
- 6.2%
- Free cash flow margin
- −10%
- Revenue, trailing twelve months
- $571M
- Free cash flow, trailing twelve months
- −$59M
- Net income, trailing twelve months
- $35M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.