ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
TSX:EFX - Toronto Stock Exchange - CA29269R1055 - Common Stock - Currency: CAD
Taking everything into account, EFX scores 4 out of 10 in our fundamental rating. EFX was compared to 27 industry peers in the Energy Equipment & Services industry. EFX may be in some trouble as it scores bad on both profitability and health. EFX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EFX had positive earnings in the past year.
In the past year EFX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EFX reported negative net income in multiple years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX has a worse Return On Assets (2.68%) than 62.96% of its industry peers.
Looking at the Return On Equity, with a value of 6.88%, EFX is doing worse than 66.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.39%, EFX is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EFX is significantly below the industry average of 10.85%.
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
The Profit Margin of EFX (3.18%) is worse than 70.37% of its industry peers.
In the last couple of years the Profit Margin of EFX has declined.
Looking at the Operating Margin, with a value of 10.27%, EFX is in line with its industry, outperforming 59.26% of the companies in the same industry.
EFX's Operating Margin has declined in the last couple of years.
The Gross Margin of EFX (23.41%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EFX has remained more or less at the same level.
| 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
EFX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EFX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, EFX has more shares outstanding
EFX has a better debt/assets ratio than last year.
2.2 Solvency
EFX has an Altman-Z score of 1.55. This is a bad value and indicates that EFX is not financially healthy and even has some risk of bankruptcy.
EFX has a Altman-Z score of 1.55. This is comparable to the rest of the industry: EFX outperforms 44.44% of its industry peers.
The Debt to FCF ratio of EFX is 2.89, which is a good value as it means it would take EFX, 2.89 years of fcf income to pay off 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 66.67% 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 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.55 |
ROIC/WACC1
WACC9.39%
2.3 Liquidity
EFX has a Current Ratio of 1.12. This is a normal value and indicates that EFX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, EFX is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
A Quick Ratio of 0.83 indicates that EFX may have some problems paying its short term obligations.
The Quick ratio of EFX (0.83) is worse than 81.48% 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.
Measured over the past years, EFX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.76% on average per year.
EFX shows a decrease in Revenue. In the last year, the revenue decreased by -8.76%.
Measured over the past years, EFX shows a small growth in Revenue. The Revenue has been growing by 3.37% on average per year.
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.
EFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.06% yearly.
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 5Y0.06%
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 12.12, which indicates a correct valuation of EFX.
EFX's Price/Earnings ratio is a bit more expensive when compared to the industry. EFX is more expensive than 62.96% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.91. EFX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.28, the valuation of EFX can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFX is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.77. EFX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EFX is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.63 | ||
| EV/EBITDA | 3.61 |
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.
EFX's earnings are expected to grow with 47.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y85.94%
EPS Next 3Y47.84%
5. Dividend
5.1 Amount
EFX has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
EFX's Dividend Yield is a higher than the industry average which is at 19.80.
EFX's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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
17.57% of the earnings are spent on dividend by EFX. This is a low number and sustainable payout ratio.
DP17.57%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
TSX:EFX (5/26/2025, 7:00:00 PM)
9.82
+0.13 (+1.34%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners68.51%
Inst Owner ChangeN/A
Ins Owners0.73%
Ins Owner ChangeN/A
Market Cap1.22B
Analysts76.36
Price Target14.66 (49.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-4.76%
PT rev (3m)-6.5%
EPS NQ rev (1m)9.52%
EPS NQ rev (3m)120.94%
EPS NY rev (1m)0%
EPS NY rev (3m)28.67%
Revenue NQ rev (1m)-10.49%
Revenue NQ rev (3m)7.23%
Revenue NY rev (1m)-2.58%
Revenue NY rev (3m)-3.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 8.28 | ||
| P/S | 0.38 | ||
| P/FCF | 3.63 | ||
| P/OCF | 2.79 | ||
| P/B | 0.83 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 3.61 |
EPS(TTM)0.81
EY8.25%
EPS(NY)1.19
Fwd EY12.08%
FCF(TTM)2.71
FCFY27.57%
OCF(TTM)3.53
OCFY35.9%
SpS25.73
BVpS11.88
TBVpS6.82
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)5.93%
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 | 1.55 |
F-Score6
WACC9.39%
ROIC/WACC1
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 5Y0.06%
EBIT growth 1Y57.38%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y21.08%
FCF growth 1Y282.92%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y698.92%
OCF growth 3Y29.63%
OCF growth 5Y42.99%