ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
Canada - TSX:EFX - CA29269R1055 - Common Stock
14.82 CAD
+0.02 (+0.14%)
We assign a fundamental rating of 4 out of 10 to EFX. EFX was compared to 27 industry peers in the Energy Equipment & Services industry. While EFX is still in line with the averages on profitability rating, there are concerns on its financial health. EFX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
In the past year EFX had a positive cash flow from operations.
In multiple years EFX reported negative net income over the last 5 years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX has a Return On Assets (4.47%) which is comparable to the rest of the industry.
EFX's Return On Equity of 11.45% is in line compared to the rest of the industry. EFX outperforms 59.26% of its industry peers.
EFX's Return On Invested Capital of 9.60% is fine compared to the rest of the industry. EFX outperforms 70.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFX is significantly below the industry average of 11.19%.
The last Return On Invested Capital (9.60%) for EFX is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROIC | 9.6% |
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 (5.54%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EFX has declined.
Looking at the Operating Margin, with a value of 10.99%, EFX is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
In the last couple of years the Operating Margin of EFX has declined.
EFX's Gross Margin of 23.53% is in line compared to the rest of the industry. EFX outperforms 51.85% of its industry peers.
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 | 10.99% | ||
| PM (TTM) | 5.54% | ||
| GM | 23.53% |
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.
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 1.70, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a Altman-Z score (1.70) which is in line with its industry peers.
EFX has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as EFX would need 3.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.66, EFX is in line with its industry, outperforming 59.26% of the companies in the same industry.
A Debt/Equity ratio of 0.65 indicates that EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.65) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.07
WACC8.95%
2.3 Liquidity
EFX has a Current Ratio of 1.19. This is a normal value and indicates that EFX is financially healthy and should not expect problems in meeting its short term obligations.
EFX has a worse Current ratio (1.19) than 66.67% of its industry peers.
A Quick Ratio of 0.88 indicates that EFX may have some problems paying its short term obligations.
EFX's Quick ratio of 0.88 is on the low side compared to the rest of the industry. EFX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
EFX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 195.42%, which is quite impressive.
The earnings per share for EFX have been decreasing by -31.76% on average. This is quite bad
EFX shows a decrease in Revenue. In the last year, the revenue decreased by -2.51%.
The Revenue has been growing slightly by 3.37% on average over the past years.
EPS 1Y (TTM)195.42%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%1118.6%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%0.16%
3.2 Future
The Earnings Per Share is expected to grow by 67.81% on average over the next years. This is a very strong growth
Based on estimates for the next years, EFX will show a decrease in Revenue. The Revenue will decrease by -0.41% on average per year.
EPS Next Y297.15%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
EPS Next 5YN/A
Revenue Next Year-2.78%
Revenue Next 2Y-2.07%
Revenue Next 3Y-1.41%
Revenue Next 5Y-0.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 10.29, the valuation of EFX can be described as very reasonable.
Based on the Price/Earnings ratio, EFX is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
EFX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 12.30 indicates a correct valuation of EFX.
EFX's Price/Forward Earnings ratio is in line with the industry average.
EFX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFX indicates a somewhat cheap valuation: EFX is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.36 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
The 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 67.81% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y86.73%
EPS Next 3Y67.81%
5. Dividend
5.1 Amount
EFX has a Yearly Dividend Yield of 1.03%.
EFX's Dividend Yield is a higher than the industry average which is at 3.23.
With a Dividend Yield of 1.03, EFX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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 10.85% of its income as dividend. This is a sustainable payout ratio.
DP10.85%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
TSX:EFX (9/16/2025, 7:00:00 PM)
14.82
+0.02 (+0.14%)
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 Cap1.81B
Analysts76.36
Price Target17.72 (19.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.1
Dividend Growth(5Y)-29.59%
DP10.85%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)149.61%
Min EPS beat(2)52.69%
Max EPS beat(2)246.54%
EPS beat(4)4
Avg EPS beat(4)190.74%
Min EPS beat(4)52.69%
Max EPS beat(4)404.99%
EPS beat(8)5
Avg EPS beat(8)-1147.55%
EPS beat(12)5
Avg EPS beat(12)-1587.84%
EPS beat(16)6
Avg EPS beat(16)-1242.06%
Revenue beat(2)1
Avg Revenue beat(2)3.85%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)8.05%
Revenue beat(4)2
Avg Revenue beat(4)7.15%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)28.93%
Revenue beat(8)5
Avg Revenue beat(8)16.63%
Revenue beat(12)9
Avg Revenue beat(12)13.89%
Revenue beat(16)12
Avg Revenue beat(16)12.05%
PT rev (1m)16.39%
PT rev (3m)23.56%
EPS NQ rev (1m)7.69%
EPS NQ rev (3m)145.3%
EPS NY rev (1m)24.16%
EPS NY rev (3m)24.16%
Revenue NQ rev (1m)1.33%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)3.73%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 12.3 | ||
| P/S | 0.56 | ||
| P/FCF | 6.36 | ||
| P/OCF | 4.33 | ||
| P/B | 1.16 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)1.44
EY9.72%
EPS(NY)1.21
Fwd EY8.13%
FCF(TTM)2.33
FCFY15.72%
OCF(TTM)3.43
OCFY23.12%
SpS26.33
BVpS12.74
TBVpS7.53
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROCE | 13.33% | ||
| ROIC | 9.6% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 13.31% | ||
| OM | 10.99% | ||
| PM (TTM) | 5.54% | ||
| GM | 23.53% | ||
| FCFM | 8.85% |
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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 55.75% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 159.69% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.7 |
F-Score7
WACC8.95%
ROIC/WACC1.07
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)195.42%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%1118.6%
EPS Next Y297.15%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%0.16%
Revenue Next Year-2.78%
Revenue Next 2Y-2.07%
Revenue Next 3Y-1.41%
Revenue Next 5Y-0.41%
EBIT growth 1Y54.85%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y22.49%
FCF growth 1Y216.29%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y1940.68%
OCF growth 3Y29.63%
OCF growth 5Y42.99%