ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
TSX:EFX - Toronto Stock Exchange - CA29269R1055 - Common Stock - Currency: CAD
EFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 28 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of EFX while its profitability can be described as average. EFX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
EFX had a positive operating cash flow in the past year.
In multiple years EFX reported negative net income over the last 5 years.
In the past 5 years EFX always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.68%, EFX is in line with its industry, outperforming 46.43% of the companies in the same industry.
EFX has a Return On Equity (6.88%) which is in line with its industry peers.
EFX has a Return On Invested Capital of 9.39%. This is in the better half of the industry: EFX outperforms 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFX is significantly below the industry average of 10.68%.
The last Return On Invested Capital (9.39%) for EFX is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROIC | 9.39% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.17%
ROIC(5y)3.83%
1.3 Margins
EFX has a Profit Margin of 3.18%. This is in the lower half of the industry: EFX underperforms 60.71% of its industry peers.
EFX's Profit Margin has declined in the last couple of years.
The Operating Margin of EFX (10.27%) is better than 64.29% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.41%, EFX is in line with its industry, outperforming 53.57% of the companies in the same industry.
EFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 3.18% | ||
| GM | 23.41% |
OM growth 3Y8.72%
OM growth 5Y-8.35%
PM growth 3YN/A
PM growth 5Y-29.12%
GM growth 3Y-3.06%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EFX is still creating some value.
Compared to 1 year ago, EFX has about the same amount of shares outstanding.
The number of shares outstanding for EFX has been increased compared to 5 years ago.
The debt/assets ratio for EFX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.59, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a Altman-Z score (1.59) which is in line with its industry peers.
EFX has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as EFX would need 2.89 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.89, EFX is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
EFX has a Debt/Equity ratio of 0.64. This is a neutral value indicating EFX is somewhat dependend on debt financing.
EFX has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: EFX underperforms 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.21
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.12 indicates that EFX should not have too much problems paying its short term obligations.
EFX's Current ratio of 1.12 is on the low side compared to the rest of the industry. EFX is outperformed by 67.86% of its industry peers.
EFX has a Quick Ratio of 1.12. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
EFX has a Quick ratio of 0.83. This is in the lower half of the industry: EFX underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
EFX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.30%, which is quite impressive.
EFX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.76% yearly.
The Revenue has decreased by -8.76% in the past year.
The Revenue has been growing slightly by 3.37% on average over the past years.
EPS 1Y (TTM)151.3%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%226.78%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%-35.81%
3.2 Future
EFX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.84% yearly.
The Revenue is expected to decrease by -0.42% on average over the next years.
EPS Next Y219.88%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
EPS Next 5YN/A
Revenue Next Year-4.26%
Revenue Next 2Y-3.48%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
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 accelerating.
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
The Price/Earnings ratio is 13.80, which indicates a correct valuation of EFX.
The rest of the industry has a similar Price/Earnings ratio as EFX.
The average S&P500 Price/Earnings ratio is at 27.45. EFX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.40 indicates a reasonable valuation of EFX.
EFX's Price/Forward Earnings ratio is in line with the industry average.
EFX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EFX is cheaper than 67.86% of the companies in the same industry.
78.57% of the companies in the same industry are more expensive than EFX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 3.89 |
4.3 Compensation for Growth
EFX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EFX's earnings are expected to grow with 47.84% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y85.94%
EPS Next 3Y47.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.38%, EFX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 17.16, EFX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of EFX decreases each year by -29.59%.
EFX has been paying a dividend for at least 10 years, so it has a reliable track record.
EFX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-29.59%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
EFX pays out 17.57% of its income as dividend. This is a sustainable payout ratio.
DP17.57%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
TSX:EFX (7/3/2025, 7:00:00 PM)
11.04
+0.12 (+1.1%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.53%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap1.37B
Analysts76.36
Price Target14.94 (35.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.1
Dividend Growth(5Y)-29.59%
DP17.57%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)44.99%
Min EPS beat(2)31.25%
Max EPS beat(2)58.73%
EPS beat(4)3
Avg EPS beat(4)119.62%
Min EPS beat(4)-16.5%
Max EPS beat(4)404.99%
EPS beat(8)4
Avg EPS beat(8)-1194.9%
EPS beat(12)5
Avg EPS beat(12)-1607.25%
EPS beat(16)5
Avg EPS beat(16)-1260.04%
Revenue beat(2)0
Avg Revenue beat(2)-6.59%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)-5.17%
Revenue beat(4)2
Avg Revenue beat(4)16.32%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)49.54%
Revenue beat(8)5
Avg Revenue beat(8)15.26%
Revenue beat(12)9
Avg Revenue beat(12)14.2%
Revenue beat(16)11
Avg Revenue beat(16)10.68%
PT rev (1m)1.86%
PT rev (3m)-2.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.8 | ||
| Fwd PE | 9.4 | ||
| P/S | 0.43 | ||
| P/FCF | 4.12 | ||
| P/OCF | 3.16 | ||
| P/B | 0.94 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 3.89 |
EPS(TTM)0.8
EY7.25%
EPS(NY)1.17
Fwd EY10.64%
FCF(TTM)2.68
FCFY24.29%
OCF(TTM)3.49
OCFY31.63%
SpS25.48
BVpS11.77
TBVpS6.75
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROCE | 13.05% | ||
| ROIC | 9.39% | ||
| ROICexc | 9.82% | ||
| ROICexgc | 13.3% | ||
| OM | 10.27% | ||
| PM (TTM) | 3.18% | ||
| GM | 23.41% | ||
| FCFM | 10.52% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.17%
ROIC(5y)3.83%
ROICexc(3y)4.42%
ROICexc(5y)4.1%
ROICexgc(3y)5.92%
ROICexgc(5y)5.75%
ROCE(3y)5.79%
ROCE(5y)5.33%
ROICexcg growth 3Y35.25%
ROICexcg growth 5Y-6.79%
ROICexc growth 3Y42.28%
ROICexc growth 5Y-4.91%
OM growth 3Y8.72%
OM growth 5Y-8.35%
PM growth 3YN/A
PM growth 5Y-29.12%
GM growth 3Y-3.06%
GM growth 5Y-0.1%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 41.11% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 76.13% | ||
| Profit Quality | 331.08% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.59 |
F-Score6
WACC7.76%
ROIC/WACC1.21
Cap/Depr(3y)62.66%
Cap/Depr(5y)82.06%
Cap/Sales(3y)4.81%
Cap/Sales(5y)6.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)151.3%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%226.78%
EPS Next Y219.88%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%-35.81%
Revenue Next Year-4.26%
Revenue Next 2Y-3.48%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
EBIT growth 1Y57.38%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y22.75%
FCF growth 1Y282.92%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y698.92%
OCF growth 3Y29.63%
OCF growth 5Y42.99%