CHAMPIONX CORP (CHX) Stock Fundamental Analysis
NASDAQ:CHX - Nasdaq - US15872M1045 - Common Stock - Currency: USD
CHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. CHX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
Of the past 5 years CHX 4 years were profitable.
CHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHX has a Return On Assets of 8.37%. This is in the better half of the industry: CHX outperforms 79.37% of its industry peers.
CHX's Return On Equity of 15.29% is fine compared to the rest of the industry. CHX outperforms 77.78% of its industry peers.
The Return On Invested Capital of CHX (14.15%) is better than 88.89% 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 8.50%.
The last Return On Invested Capital (14.15%) 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 | 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
Looking at the Profit Margin, with a value of 8.20%, CHX is in the better half of the industry, outperforming 66.67% 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 14.41%, CHX is doing good in the industry, outperforming 69.84% of the companies in the same industry.
In the last couple of years the Operating Margin of CHX has grown nicely.
CHX has a better Gross Margin (33.16%) than 61.90% of its industry peers.
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.
The debt/assets ratio for CHX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that CHX is not in any danger for bankruptcy at the moment.
CHX has a Altman-Z score of 3.68. This is amongst the best in the industry. CHX outperforms 84.13% of its industry peers.
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 80.95% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CHX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, CHX is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.53
WACC9.26%
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 Current ratio of 2.25. This is in the better half of the industry: CHX outperforms 68.25% of its industry peers.
A Quick Ratio of 1.62 indicates that CHX should not have too much problems paying its short term obligations.
The Quick ratio of CHX (1.62) is better than 60.32% 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%.
CHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
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
The Earnings Per Share is expected to grow by 6.80% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.73, the valuation of CHX can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CHX is on the same level as its industry peers.
CHX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 12.39, CHX is valued correctly.
CHX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. CHX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHX is valued a bit more expensive than the industry average as 65.08% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
CHX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CHX may justify a higher PE ratio.
PEG (NY)1.07
PEG (5Y)1.33
EPS Next 2Y9.04%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
CHX has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.73, CHX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, CHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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%
26.67
+0.49 (+1.87%)
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 Cap5.11B
Analysts86.67
Price Target42.23 (58.34%)
Short Float %2.37%
Short Ratio0.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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)-3.72%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)-4.28%
EPS NY rev (3m)-1.39%
Revenue NQ rev (1m)-1.55%
Revenue NQ rev (3m)-3.42%
Revenue NY rev (1m)-3.37%
Revenue NY rev (3m)-4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 12.39 | ||
| P/S | 1.43 | ||
| P/FCF | 14.91 | ||
| P/OCF | 10.57 | ||
| P/B | 2.66 | ||
| P/tB | 4.87 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)1.81
EY6.79%
EPS(NY)2.15
Fwd EY8.07%
FCF(TTM)1.79
FCFY6.7%
OCF(TTM)2.52
OCFY9.46%
SpS18.68
BVpS10.01
TBVpS5.48
PEG (NY)1.07
PEG (5Y)1.33
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%
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 | 0.78 | ||
| 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 | 3.68 |
F-Score6
WACC9.26%
ROIC/WACC1.53
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 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%