Obsidian Energy (TSX:OBE) Continues to Struggle with Negative Margins Despite Valuation Discount

Obsidian Energy's (TSX:OBE) net profit margin and overall earnings quality remain negative, despite a 15% annual reduction in losses over the past five years. The company's Price-To-Sales Ratio is 0.8x, significantly below the Canadian Oil and Gas industry average of 2.5x and peers, signaling a valuation discount. Analysts forecast the company to become profitable within three years, which creates a tension between optimism for a turnaround and ongoing negative margins.