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ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis

TSX:EFX - Toronto Stock Exchange - CA29269R1055 - Common Stock - Currency: CAD

13.43  -0.32 (-2.33%)

Fundamental Rating

3

Taking everything into account, EFX scores 3 out of 10 in our fundamental rating. EFX was compared to 28 industry peers in the Energy Equipment & Services industry. EFX has a bad profitability rating. Also its financial health evaluation is rather negative. EFX is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year EFX has reported negative net income.
EFX had a positive operating cash flow in the past year.
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.
EFX.CA Yearly Net Income VS EBIT VS OCF VS FCFEFX.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M

1.2 Ratios

The Return On Assets of EFX (-2.59%) is worse than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of -7.17%, EFX is doing worse than 78.57% of the companies in the same industry.
EFX has a Return On Invested Capital of 7.31%. This is in the lower half of the industry: EFX underperforms 60.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EFX is significantly below the industry average of 12.35%.
The last Return On Invested Capital (7.31%) for EFX is above the 3 year average (2.57%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -2.59%
ROE -7.17%
ROIC 7.31%
ROA(3y)-1.96%
ROA(5y)0.9%
ROE(3y)-5.14%
ROE(5y)0.44%
ROIC(3y)2.57%
ROIC(5y)4.19%
EFX.CA Yearly ROA, ROE, ROICEFX.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10

1.3 Margins

The Operating Margin of EFX (8.31%) is worse than 60.71% of its industry peers.
In the last couple of years the Operating Margin of EFX has declined.
With a Gross Margin value of 19.99%, EFX perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
EFX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.31%
PM (TTM) N/A
GM 19.99%
OM growth 3Y-10.18%
OM growth 5Y-3.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.47%
GM growth 5Y1.6%
EFX.CA Yearly Profit, Operating, Gross MarginsEFX.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EFX is destroying value.
Compared to 1 year ago, EFX has more shares outstanding
The number of shares outstanding for EFX has been increased compared to 5 years ago.
Compared to 1 year ago, EFX has an improved debt to assets ratio.
EFX.CA Yearly Shares OutstandingEFX.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
EFX.CA Yearly Total Debt VS Total AssetsEFX.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.53, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a worse Altman-Z score (1.53) than 60.71% of its industry peers.
The Debt to FCF ratio of EFX is 2.84, which is a good value as it means it would take EFX, 2.84 years of fcf income to pay off all of its debts.
EFX's Debt to FCF ratio of 2.84 is fine compared to the rest of the industry. EFX outperforms 67.86% of its industry peers.
EFX has a Debt/Equity ratio of 0.79. This is a neutral value indicating EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.79) is worse than 71.43% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 2.84
Altman-Z 1.53
ROIC/WACC0.97
WACC7.57%
EFX.CA Yearly LT Debt VS Equity VS FCFEFX.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 1.19 indicates that EFX should not have too much problems paying its short term obligations.
EFX has a worse Current ratio (1.19) than 64.29% of its industry peers.
EFX has a Quick Ratio of 1.19. 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's Quick ratio of 0.88 is on the low side compared to the rest of the industry. EFX is outperformed by 71.43% of its industry peers.
Industry RankSector Rank
Current Ratio 1.19
Quick Ratio 0.88
EFX.CA Yearly Current Assets VS Current LiabilitesEFX.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2

3. Growth

3.1 Past

EFX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -66.65%.
The Revenue for EFX has decreased by -15.25% in the past year. This is quite bad
The Revenue has been growing slightly by 5.81% on average over the past years.
EPS 1Y (TTM)-66.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%379.44%
Revenue 1Y (TTM)-15.25%
Revenue growth 3Y22.9%
Revenue growth 5Y5.81%
Sales Q2Q%-22.77%

3.2 Future

Based on estimates for the next years, EFX will show a very strong growth in Earnings Per Share. The EPS will grow by 36.41% on average per year.
Based on estimates for the next years, EFX will show a decrease in Revenue. The Revenue will decrease by -1.50% on average per year.
EPS Next Y130.43%
EPS Next 2Y63.49%
EPS Next 3Y36.41%
EPS Next 5YN/A
Revenue Next Year-7.74%
Revenue Next 2Y-5.01%
Revenue Next 3Y-4.14%
Revenue Next 5Y-1.5%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
EFX.CA Yearly Revenue VS EstimatesEFX.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B
EFX.CA Yearly EPS VS EstimatesEFX.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5 1 1.5

5

4. Valuation

4.1 Price/Earnings Ratio

EFX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 15.65, EFX is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as EFX.
EFX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
Industry RankSector Rank
PE N/A
Fwd PE 15.65
EFX.CA Price Earnings VS Forward Price EarningsEFX.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60 80

4.2 Price Multiples

EFX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFX indicates a rather cheap valuation: EFX is cheaper than 85.71% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.85
EV/EBITDA 4.91
EFX.CA Per share dataEFX.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

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 36.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.49%
EPS Next 3Y36.41%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.12%, EFX has a reasonable but not impressive dividend return.
EFX's Dividend Yield is a higher than the industry average which is at 12.65.
With a Dividend Yield of 1.12, EFX pays less dividend than the S&P500 average, which is at 2.30.
Industry RankSector Rank
Dividend Yield 1.12%

5.2 History

The dividend of EFX decreases each year by -28.40%.
EFX has paid a dividend for at least 10 years, which is a reliable track record.
EFX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-28.4%
Div Incr Years1
Div Non Decr Years3
EFX.CA Yearly Dividends per shareEFX.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

The earnings of EFX are negative and hence is the payout ratio. EFX will probably not be able to sustain this dividend level.
DP-12.21%
EPS Next 2Y63.49%
EPS Next 3Y36.41%
EFX.CA Yearly Income VS Free CF VS DividendEFX.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M

ENERFLEX LTD

TSX:EFX (2/11/2025, 7:00:00 PM)

13.43

-0.32 (-2.33%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)02-27 2025-02-27/amc
Inst Owners63.73%
Inst Owner ChangeN/A
Ins Owners0.75%
Ins Owner ChangeN/A
Market Cap1.67B
Analysts76.67
Price Target15.17 (12.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.12%
Yearly Dividend0.07
Dividend Growth(5Y)-28.4%
DP-12.21%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)194.25%
Min EPS beat(2)-16.5%
Max EPS beat(2)404.99%
EPS beat(4)1
Avg EPS beat(4)-2514.29%
Min EPS beat(4)-10098%
Max EPS beat(4)404.99%
EPS beat(8)2
Avg EPS beat(8)-2346.16%
EPS beat(12)3
Avg EPS beat(12)-1683.08%
EPS beat(16)4
Avg EPS beat(16)-1255.87%
Revenue beat(2)2
Avg Revenue beat(2)39.23%
Min Revenue beat(2)28.93%
Max Revenue beat(2)49.54%
Revenue beat(4)3
Avg Revenue beat(4)33.06%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)55.28%
Revenue beat(8)7
Avg Revenue beat(8)20.74%
Revenue beat(12)11
Avg Revenue beat(12)16.73%
Revenue beat(16)12
Avg Revenue beat(16)11.96%
PT rev (1m)9.93%
PT rev (3m)39.09%
EPS NQ rev (1m)-17.82%
EPS NQ rev (3m)-24.31%
EPS NY rev (1m)11.73%
EPS NY rev (3m)43.01%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)4.1%
Revenue NY rev (1m)6.98%
Revenue NY rev (3m)-10.23%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 15.65
P/S 0.48
P/FCF 3.85
P/OCF 3.2
P/B 1.1
P/tB 1.99
EV/EBITDA 4.91
EPS(TTM)-1.29
EYN/A
EPS(NY)0.86
Fwd EY6.39%
FCF(TTM)3.49
FCFY25.96%
OCF(TTM)4.19
OCFY31.22%
SpS27.97
BVpS12.2
TBVpS6.74
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.59%
ROE -7.17%
ROCE 10.16%
ROIC 7.31%
ROICexc 7.68%
ROICexgc 10.25%
OM 8.31%
PM (TTM) N/A
GM 19.99%
FCFM 12.46%
ROA(3y)-1.96%
ROA(5y)0.9%
ROE(3y)-5.14%
ROE(5y)0.44%
ROIC(3y)2.57%
ROIC(5y)4.19%
ROICexc(3y)2.82%
ROICexc(5y)4.47%
ROICexgc(3y)3.95%
ROICexgc(5y)6.51%
ROCE(3y)3.58%
ROCE(5y)5.82%
ROICexcg growth 3Y3.39%
ROICexcg growth 5Y-8.78%
ROICexc growth 3Y7.35%
ROICexc growth 5Y-3.72%
OM growth 3Y-10.18%
OM growth 5Y-3.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.47%
GM growth 5Y1.6%
F-Score5
Asset Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 2.84
Debt/EBITDA 2.13
Cap/Depr 32.02%
Cap/Sales 2.53%
Interest Coverage 250
Cash Conversion 92.51%
Profit Quality N/A
Current Ratio 1.19
Quick Ratio 0.88
Altman-Z 1.53
F-Score5
WACC7.57%
ROIC/WACC0.97
Cap/Depr(3y)69.73%
Cap/Depr(5y)134.04%
Cap/Sales(3y)5.67%
Cap/Sales(5y)8.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-66.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%379.44%
EPS Next Y130.43%
EPS Next 2Y63.49%
EPS Next 3Y36.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.25%
Revenue growth 3Y22.9%
Revenue growth 5Y5.81%
Sales Q2Q%-22.77%
Revenue Next Year-7.74%
Revenue Next 2Y-5.01%
Revenue Next 3Y-4.14%
Revenue Next 5Y-1.5%
EBIT growth 1Y195.76%
EBIT growth 3Y10.39%
EBIT growth 5Y1.93%
EBIT Next Year91.98%
EBIT Next 3Y27.73%
EBIT Next 5Y15.49%
FCF growth 1Y216.23%
FCF growth 3Y2.53%
FCF growth 5Y-3.4%
OCF growth 1Y127.22%
OCF growth 3Y-3.92%
OCF growth 5Y-4.27%