Obsidian Energy Operating Margin vs. Gross Profit

OBE Stock  CAD 8.58  0.02  0.23%   
Based on the key profitability measurements obtained from Obsidian Energy's financial statements, Obsidian Energy may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in April. Profitability indicators assess Obsidian Energy's ability to earn profits and add value for shareholders.
For Obsidian Energy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Obsidian Energy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Obsidian Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Obsidian Energy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Obsidian Energy over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Obsidian Energy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Obsidian Energy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Obsidian Energy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Obsidian Energy Gross Profit vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Obsidian Energy's current stock value. Our valuation model uses many indicators to compare Obsidian Energy value to that of its competitors to determine the firm's financial worth.
Obsidian Energy is regarded fifth in operating margin category among its peers. It is considered to be number one stock in gross profit category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Obsidian Energy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Obsidian Energy's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Obsidian Gross Profit vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Obsidian Energy

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(1.92) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Obsidian Energy

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
458.1 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Obsidian Gross Profit Comparison

Obsidian Energy is currently under evaluation in gross profit category among its peers.

Obsidian Energy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Obsidian Energy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Obsidian Energy will eventually generate negative long term returns. The profitability progress is the general direction of Obsidian Energy's change in net profit over the period of time. It can combine multiple indicators of Obsidian Energy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Obsidian Energy Ltd. primarily focuses on the exploration, production, and development of oil and natural gas properties in the Western Canada Sedimentary Basin. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017. OBSIDIAN ENERGY operates under Oil Gas EP classification in Canada and is traded on Toronto Stock Exchange. It employs 173 people.

Obsidian Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Obsidian Energy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Obsidian Energy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Obsidian Energy's important profitability drivers and their relationship over time.

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When determining whether Obsidian Energy is a strong investment it is important to analyze Obsidian Energy's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Obsidian Energy's future performance. For an informed investment choice regarding Obsidian Stock, refer to the following important reports:
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To learn how to invest in Obsidian Stock, please use our How to Invest in Obsidian Energy guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
To fully project Obsidian Energy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Obsidian Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Obsidian Energy's income statement, its balance sheet, and the statement of cash flows.
Potential Obsidian Energy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Obsidian Energy investors may work on each financial statement separately, they are all related. The changes in Obsidian Energy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Obsidian Energy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.