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 61 industry peers in the Energy Equipment & Services industry. Both the health and profitability get an excellent rating, making CHX a very profitable company, without any liquidiy or solvency issues. 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
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.
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.
The Average Return On Invested Capital over the past 3 years for CHX is significantly above the industry average of 8.03%.
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.
In the last couple of years the Profit Margin of CHX has grown nicely.
The Operating Margin of CHX (14.41%) is better than 72.58% of its industry peers.
In the last couple of years the Operating Margin of CHX has grown nicely.
Looking at the Gross Margin, with a value of 33.16%, CHX is in the better half of 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.
CHX has less shares outstanding than it did 1 year ago.
CHX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CHX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.65 indicates that CHX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, CHX belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
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.
The Debt to FCF ratio of CHX (1.74) is better than 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.
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
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's Current ratio of 2.25 is fine compared to the rest of the industry. CHX outperforms 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.
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.
Looking at the last year, CHX shows a decrease in Revenue. The Revenue has decreased by -4.17% in the last year.
The Revenue has been growing by 26.29% on average over the past years. This is a very strong growth!
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 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
With a Price/Earnings ratio of 14.26, CHX is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CHX indicates a somewhat cheap valuation: CHX is cheaper than 64.52% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CHX to the average of the S&P500 Index (26.51), we can say CHX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.24, CHX is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.09, CHX is valued rather cheaply.
| 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 is on the same level as 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.
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%. Purely for dividend investing, there may be better candidates out there.
CHX's Dividend Yield is a higher than the industry average which is at 3.85.
Compared to the average S&P500 Dividend Yield of 2.40, CHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of CHX decreases each year by -47.78%.
CHX has been paying a dividend for less than 5 years, so it still needs to build a track record.
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%
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-2.54%
Ins Owners0.99%
Ins Owner Change-2079.7%
Market Cap4.94B
Analysts86.67
Price Target42.23 (63.62%)
Short Float %1.67%
Short Ratio1.03
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
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 | 3.65 |
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%