CHAMPIONX CORP (CHX) Stock Fundamental Analysis
USA - NASDAQ:CHX - US15872M1045 - Common Stock
25.81 USD
-0.79 (-2.97%)
25.83 USD
+0.02 (+0.08%)
We assign a fundamental rating of 6 out of 10 to CHX. CHX was compared to 60 industry peers in the Energy Equipment & Services industry. CHX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CHX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHX was profitable.
CHX had a positive operating cash flow in the past year.
CHX had positive earnings in 4 of the past 5 years.
CHX had a positive operating cash flow in each of the past 5 years.
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.
CHX's Return On Equity of 15.29% is fine compared to the rest of the industry. CHX outperforms 77.42% of its industry peers.
CHX has a better Return On Invested Capital (14.15%) than 88.71% of its industry peers.
CHX had an Average Return On Invested Capital over the past 3 years of 13.65%. This is significantly above the industry average of 7.82%.
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
CHX's Profit Margin of 8.20% is fine compared to the rest of the industry. CHX outperforms 66.13% of its industry peers.
CHX's Profit Margin has improved in the last couple of years.
CHX's Operating Margin of 14.41% is fine compared to the rest of the industry. CHX outperforms 72.58% of its industry peers.
In the last couple of years the Operating Margin of CHX has grown nicely.
With a decent Gross Margin value of 33.16%, CHX is doing good in the industry, outperforming 62.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CHX has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CHX is still 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.
CHX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.65 indicates that CHX is not in any danger for bankruptcy at the moment.
CHX has a Altman-Z score of 3.65. This is amongst the best in the industry. CHX outperforms 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.
CHX's Debt to FCF ratio of 1.74 is amongst the best of the industry. CHX outperforms 80.65% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CHX is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.31, CHX is doing good in the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.51
WACC9.37%
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 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
CHX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.63%.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
The Revenue has decreased by -4.17% in the past year.
Measured over the past years, CHX shows a very strong growth in Revenue. The Revenue has been growing by 26.29% on average per year.
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
CHX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.80% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 correctly with a Price/Earnings ratio of 14.26.
Based on the Price/Earnings ratio, CHX is valued a bit cheaper than 64.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, CHX is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.24, which indicates a correct valuation of CHX.
CHX's Price/Forward Earnings is on the same level as the industry average.
CHX is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
CHX's Enterprise Value to EBITDA ratio is in line with the industry average.
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 an expensive valuation of the company.
The excellent profitability rating of CHX 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%.
CHX's Dividend Yield is a higher than the industry average which is at 2.87.
CHX's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| 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
24.70% of the earnings are spent on dividend by CHX. This is a low number and sustainable payout ratio.
DP24.7%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
25.81
-0.79 (-2.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.44%
Inst Owner Change-3.46%
Ins Owners0.99%
Ins Owner Change-2004.42%
Market Cap4.94B
Revenue(TTM)3.58B
Net Income(TTM)293.14M
Analysts86.67
Price Target42.23 (63.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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)0%
PT rev (3m)-1.9%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-10.47%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)-2.24%
Revenue NY rev (3m)-7.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.38 | ||
| P/FCF | 14.43 | ||
| P/OCF | 10.23 | ||
| P/B | 2.58 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.81
EY7.01%
EPS(NY)1.95
Fwd EY7.56%
FCF(TTM)1.79
FCFY6.93%
OCF(TTM)2.52
OCFY9.77%
SpS18.68
BVpS10.01
TBVpS5.48
PEG (NY)2.24
PEG (5Y)1.29
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROCE | 18.98% | ||
| ROIC | 14.15% | ||
| ROICexc | 17.55% | ||
| ROICexgc | 29.07% | ||
| OM | 14.41% | ||
| 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%
ROICexgc growth 3Y47.18%
ROICexgc 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 | 0.78 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 116.78% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 3.65 |
F-Score6
WACC9.37%
ROIC/WACC1.51
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 Y6.36%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
EPS Next 5Y6.8%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-6.25%
Revenue Next Year-5.3%
Revenue Next 2Y-2.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.82%
EBIT growth 1Y0.17%
EBIT growth 3Y40.57%
EBIT growth 5Y37.22%
EBIT Next Year52.58%
EBIT Next 3Y14.47%
EBIT Next 5Y9.48%
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%
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.
What is the valuation status of CHAMPIONX CORP (CHX) stock?
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.
What are the PE and PB ratios of CHAMPIONX CORP (CHX) stock?
The Price/Earnings (PE) ratio for CHAMPIONX CORP (CHX) is 14.26 and the Price/Book (PB) ratio is 2.58.
What is the earnings growth outlook for CHAMPIONX CORP?
The Earnings per Share (EPS) of CHAMPIONX CORP (CHX) is expected to grow by 6.36% in the next year.