CHAMPIONX CORP (CHX) Stock Fundamental Analysis
NASDAQ:CHX - Nasdaq - US15872M1045 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to CHX. CHX was compared to 62 industry peers in the Energy Equipment & Services industry. CHX scores excellent on profitability, but there are some minor concerns on its financial health. CHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CHX had positive earnings in the past year.
In the past year CHX had a positive cash flow from operations.
Of the past 5 years CHX 4 years were profitable.
Each year in the past 5 years CHX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 8.37%, CHX is doing good in the industry, outperforming 79.03% of the companies in the same industry.
With a decent Return On Equity value of 15.29%, CHX is doing good in the industry, outperforming 77.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.87%, CHX belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHX is above the industry average of 8.69%.
The last Return On Invested Capital (13.87%) for CHX is above the 3 year average (13.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROIC | 13.87% |
ROA(3y)7.83%
ROA(5y)1.06%
ROE(3y)15.08%
ROE(5y)1.18%
ROIC(3y)13.65%
ROIC(5y)9.48%
1.3 Margins
With a decent Profit Margin value of 8.20%, CHX is doing good in the industry, outperforming 64.52% of the companies in the same industry.
In the last couple of years the Profit Margin of CHX has grown nicely.
Looking at the Operating Margin, with a value of 14.13%, CHX is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
CHX's Operating Margin has improved in the last couple of years.
CHX has a Gross Margin of 33.16%. This is in the better half of the industry: CHX outperforms 62.90% of its industry peers.
CHX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.13% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.16% |
OM growth 3Y32.96%
OM growth 5Y8.66%
PM growth 3Y33.74%
PM growth 5Y13.82%
GM growth 3Y10.44%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHX is creating some value.
The number of shares outstanding for CHX has been reduced compared to 1 year ago.
CHX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CHX has been reduced compared to a year ago.
2.2 Solvency
CHX has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
CHX's Debt to FCF ratio of 1.74 is amongst the best of the industry. CHX outperforms 80.65% of its industry peers.
CHX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
CHX has a Debt to Equity ratio of 0.31. This is comparable to the rest of the industry: CHX outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | N/A |
ROIC/WACC1.5
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.25 indicates that CHX has no problem at all paying its short term obligations.
CHX has a better Current ratio (2.25) than 69.35% of its industry peers.
A Quick Ratio of 1.62 indicates that CHX should not have too much problems paying its short term obligations.
CHX has a Quick ratio of 1.62. This is in the better half of the industry: CHX outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for CHX have decreased by -1.63% in the last year.
CHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
CHX shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
CHX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.29% yearly.
EPS 1Y (TTM)-1.63%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-6.25%
3.2 Future
Based on estimates for the next years, CHX will show a small growth in Earnings Per Share. The EPS will grow by 6.80% on average per year.
Based on estimates for the next years, CHX will show a small growth in Revenue. The Revenue will grow by 2.82% on average per year.
EPS Next Y13.71%
EPS Next 2Y9.04%
EPS Next 3Y7.38%
EPS Next 5Y6.8%
Revenue Next Year-2.65%
Revenue Next 2Y0.45%
Revenue Next 3Y0.28%
Revenue Next 5Y2.82%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.52, the valuation of CHX can be described as correct.
CHX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. CHX is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.37, the valuation of CHX can be described as reasonable.
CHX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 11.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHX is valued a bit more expensive than the industry average as 62.90% of the companies are valued more cheaply.
CHX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.69 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
CHX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CHX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)1.22
EPS Next 2Y9.04%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, CHX has a reasonable but not impressive dividend return.
CHX's Dividend Yield is a higher than the industry average which is at 4.01.
Compared to the average S&P500 Dividend Yield of 2.36, CHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
The dividend of CHX decreases each year by -47.78%.
CHX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)-47.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
24.70% of the earnings are spent on dividend by CHX. This is a low number and sustainable payout ratio.
DP24.7%
EPS Next 2Y9.04%
EPS Next 3Y7.38%
24.48
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change4.59%
Ins Owners1.36%
Ins Owner Change18.7%
Market Cap4.69B
Analysts86.67
Price Target42.23 (72.51%)
Short Float %3.9%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend0.37
Dividend Growth(5Y)-47.78%
DP24.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.44%
Min EPS beat(2)0.36%
Max EPS beat(2)14.53%
EPS beat(4)2
Avg EPS beat(4)-2.36%
Min EPS beat(4)-19.69%
Max EPS beat(4)14.53%
EPS beat(8)4
Avg EPS beat(8)0.56%
EPS beat(12)8
Avg EPS beat(12)1.75%
EPS beat(16)11
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-4.29%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-3.77%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-1.12%
PT rev (1m)-3.72%
PT rev (3m)-4.67%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-2.44%
Revenue NQ rev (3m)-2.83%
Revenue NY rev (1m)-4.81%
Revenue NY rev (3m)-6.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 11.37 | ||
| P/S | 1.31 | ||
| P/FCF | 13.69 | ||
| P/OCF | 9.7 | ||
| P/B | 2.45 | ||
| P/tB | 4.47 | ||
| EV/EBITDA | 6.33 |
EPS(TTM)1.81
EY7.39%
EPS(NY)2.15
Fwd EY8.79%
FCF(TTM)1.79
FCFY7.3%
OCF(TTM)2.52
OCFY10.31%
SpS18.68
BVpS10.01
TBVpS5.48
PEG (NY)0.99
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROCE | 18.61% | ||
| ROIC | 13.87% | ||
| ROICexc | 17.2% | ||
| ROICexgc | 28.5% | ||
| OM | 14.13% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.16% | ||
| FCFM | 9.57% |
ROA(3y)7.83%
ROA(5y)1.06%
ROE(3y)15.08%
ROE(5y)1.18%
ROIC(3y)13.65%
ROIC(5y)9.48%
ROICexc(3y)15.86%
ROICexc(5y)10.93%
ROICexgc(3y)28.04%
ROICexgc(5y)19.36%
ROCE(3y)18.31%
ROCE(5y)12.72%
ROICexcg growth 3Y47.18%
ROICexcg growth 5Y16.9%
ROICexc growth 3Y46.83%
ROICexc growth 5Y30.42%
OM growth 3Y32.96%
OM growth 5Y8.66%
PM growth 3Y33.74%
PM growth 5Y13.82%
GM growth 3Y10.44%
GM growth 5Y-0.48%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.26% | ||
| Profit Quality | 116.78% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | N/A |
F-Score6
WACC9.27%
ROIC/WACC1.5
Cap/Depr(3y)53.43%
Cap/Depr(5y)43.4%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.1%
Profit Quality(3y)155.68%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.63%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%0%
EPS Next Y13.71%
EPS Next 2Y9.04%
EPS Next 3Y7.38%
EPS Next 5Y6.8%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-6.25%
Revenue Next Year-2.65%
Revenue Next 2Y0.45%
Revenue Next 3Y0.28%
Revenue Next 5Y2.82%
EBIT growth 1Y-1.81%
EBIT growth 3Y40.57%
EBIT growth 5Y37.22%
EBIT Next Year58.64%
EBIT Next 3Y21.67%
EBIT Next 5Y9.34%
FCF growth 1Y-23.96%
FCF growth 3Y22.54%
FCF growth 5Y31.03%
OCF growth 1Y-12.01%
OCF growth 3Y21.57%
OCF growth 5Y30.48%