CHAMPIONX CORP (CHX)
US15872M1045 - Common Stock
CHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 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.
CHX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CHX had a positive operating cash flow.
1.2 Ratios
CHX's Return On Assets of 10.94% is amongst the best of the industry. CHX outperforms 87.69% of its industry peers.
CHX has a better Return On Equity (21.26%) than 87.69% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.84%, CHX belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CHX is above the industry average of 8.47%.
The last Return On Invested Capital (15.84%) for CHX is above the 3 year average (10.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 21.26% | ||
| ROIC | 15.84% |
ROA(3y)5.82%
ROA(5y)-0.24%
ROE(3y)11.43%
ROE(5y)-1.28%
ROIC(3y)10.96%
ROIC(5y)7.81%
1.3 Margins
With a decent Profit Margin value of 9.74%, CHX is doing good in the industry, outperforming 73.85% of the companies in the same industry.
In the last couple of years the Profit Margin of CHX has grown nicely.
With a decent Operating Margin value of 13.80%, CHX is doing good in the industry, outperforming 66.15% of the companies in the same industry.
CHX's Operating Margin has been stable in the last couple of years.
CHX has a Gross Margin (30.99%) which is in line with its industry peers.
In the last couple of years the Gross Margin of CHX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.8% | ||
| PM (TTM) | 9.74% | ||
| GM | 30.99% |
OM growth 3Y70.52%
OM growth 5Y1.06%
PM growth 3YN/A
PM growth 5Y1.9%
GM growth 3Y10.92%
GM growth 5Y-2.57%
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.
The number of shares outstanding for CHX has been increased compared to 5 years ago.
Compared to 1 year ago, CHX has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of CHX is 1.27, which is an excellent value as it means it would take CHX, only 1.27 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CHX (1.27) is better than 84.62% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that CHX is not too dependend on debt financing.
CHX has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | N/A |
ROIC/WACC1.75
WACC9.05%
2.3 Liquidity
CHX has a Current Ratio of 1.83. This is a normal value and indicates that CHX is financially healthy and should not expect problems in meeting its short term obligations.
CHX has a Current ratio (1.83) which is comparable to the rest of the industry.
A Quick Ratio of 1.16 indicates that CHX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, CHX is doing worse than 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 31.43% over the past year.
The Earnings Per Share has been growing by 11.65% on average over the past years. This is quite good.
Looking at the last year, CHX shows a decrease in Revenue. The Revenue has decreased by -4.02% in the last year.
CHX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.27% yearly.
EPS 1Y (TTM)31.43%
EPS 3YN/A
EPS 5Y11.65%
EPS growth Q2Q38.89%
Revenue 1Y (TTM)-4.02%
Revenue growth 3Y25.53%
Revenue growth 5Y25.27%
Revenue growth Q2Q-2.76%
3.2 Future
CHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.55% yearly.
Based on estimates for the next years, CHX will show a small growth in Revenue. The Revenue will grow by 5.67% on average per year.
EPS Next Y17.92%
EPS Next 2Y19.51%
EPS Next 3Y18.39%
EPS Next 5Y12.55%
Revenue Next Year3.39%
Revenue Next 2Y5.19%
Revenue Next 3Y5.59%
Revenue Next 5Y5.67%
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 stable.
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
CHX is valuated rather expensively with a Price/Earnings ratio of 18.04.
The rest of the industry has a similar Price/Earnings ratio as CHX.
Compared to an average S&P500 Price/Earnings ratio of 24.55, CHX is valued a bit cheaper.
CHX is valuated correctly with a Price/Forward Earnings ratio of 13.67.
The rest of the industry has a similar Price/Forward Earnings ratio as CHX.
The average S&P500 Price/Forward Earnings ratio is at 20.92. CHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 13.67 |
4.2 Price Multiples
CHX's Enterprise Value to EBITDA is on the same level as the industry average.
CHX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CHX is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.34 | ||
| EV/EBITDA | 8.76 |
4.3 Compensation for Growth
CHX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CHX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHX's earnings are expected to grow with 18.39% in the coming years.
PEG (NY)1.01
PEG (5Y)1.55
EPS Next 2Y19.51%
EPS Next 3Y18.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, CHX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.21, CHX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, CHX pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
CHX has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
18.21% of the earnings are spent on dividend by CHX. This is a low number and sustainable payout ratio.
DP18.21%
EPS Next 2Y19.51%
EPS Next 3Y18.39%
CHAMPIONX CORP
NASDAQ:CHX (5/1/2024, 7:00:00 PM)
After market: 33.36 +0.16 (+0.48%)33.2
-0.37 (-1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 13.67 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.01
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 21.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.8% | ||
| PM (TTM) | 9.74% | ||
| GM | 30.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)31.43%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y17.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.02%
Revenue growth 3Y25.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y