25.81 USD
-0.79 (-2.97%)
25.83 USD
+0.02 (+0.08%)
Taking everything into account, CHX scores 6 out of 10 in our fundamental rating. CHX was compared to 61 industry peers in the Energy Equipment & Services industry. CHX gets an excellent profitability rating and is at the same time showing great financial health properties. CHX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CHX was profitable.
- 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
- CHX's Return On Assets of 8.37% is fine compared to the rest of the industry. CHX outperforms 79.03% of its industry peers.
- CHX has a Return On Equity of 15.29%. This is in the better half of the industry: CHX outperforms 77.42% of its industry peers.
- With an excellent Return On Invested Capital value of 14.15%, CHX belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CHX is in line with the industry average of 12.92%.
- The 3 year average ROIC (13.65%) for CHX is below the current ROIC(14.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROIC | 14.15% |
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
- The Profit Margin of CHX (8.20%) is better than 66.13% of its industry peers.
- In the last couple of years the Profit Margin of CHX has grown nicely.
- Looking at the Operating Margin, with a value of 14.41%, CHX is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- CHX's Operating Margin has improved in the last couple of years.
- CHX has a better Gross Margin (33.16%) than 62.90% of its industry peers.
- CHX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.41% | ||
| 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.
- Compared to 1 year ago, CHX has less shares outstanding
- 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
- An Altman-Z score of 3.65 indicates that CHX is not in any danger for bankruptcy at the moment.
- The Altman-Z score of CHX (3.65) is better than 85.48% of its industry peers.
- The Debt to FCF ratio of CHX is 1.74, which is an excellent value as it means it would take CHX, only 1.74 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.74, CHX belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- 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 better Debt to Equity ratio (0.31) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.51
WACC9.37%
2.3 Liquidity
- CHX has a Current Ratio of 2.25. This indicates that CHX is financially healthy and has no problem in meeting its short term obligations.
- CHX has a better Current ratio (2.25) than 67.74% of its industry peers.
- CHX has a Quick Ratio of 1.62. This is a normal value and indicates that CHX is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of CHX (1.62) is better than 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.
- Measured over the past years, CHX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
- The Revenue has decreased by -4.17% in the past year.
- 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.
- The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y6.36%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
EPS Next 5Y6.8%
Revenue Next Year-5.3%
Revenue Next 2Y-2.49%
Revenue Next 3Y-1.12%
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
- A Price/Earnings ratio of 14.26 indicates a correct valuation of CHX.
- CHX's Price/Earnings ratio is a bit cheaper when compared to the industry. CHX is cheaper than 64.52% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CHX is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 13.24, which indicates a correct valuation of CHX.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHX is on the same level as its industry peers.
- CHX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHX.
- CHX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CHX does not grow enough to justify the current Price/Earnings ratio.
- CHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)1.29
EPS Next 2Y3.8%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
- CHX has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.14, CHX pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, CHX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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
- CHX pays out 24.70% of its income as dividend. This is a sustainable payout ratio.
DP24.7%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
CHAMPIONX CORP / CHX FAQ
What is the ChartMill fundamental rating of CHAMPIONX CORP (CHX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CHX.
Can you provide the valuation status for CHAMPIONX CORP?
ChartMill assigns a valuation rating of 4 / 10 to CHAMPIONX CORP (CHX). This can be considered as Fairly Valued.
What is the profitability of CHX stock?
CHAMPIONX CORP (CHX) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for CHX stock?
The Earnings per Share (EPS) of CHAMPIONX CORP (CHX) is expected to grow by 6.36% in the next year.
Is the dividend of CHAMPIONX CORP sustainable?
The dividend rating of CHAMPIONX CORP (CHX) is 3 / 10 and the dividend payout ratio is 24.7%.