ENERFLEX LTD (EFXT) Stock Fundamental Analysis
NYSE:EFXT - New York Stock Exchange, Inc. - CA29269R1055 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to EFXT. EFXT was compared to 63 industry peers in the Energy Equipment & Services industry. While EFXT is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on EFXT.
1. Profitability
1.1 Basic Checks
EFXT had positive earnings in the past year.
In the past year EFXT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EFXT reported negative net income in multiple years.
EFXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.68%, EFXT perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
The Return On Equity of EFXT (6.88%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 10.31%, EFXT is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for EFXT is below the industry average of 8.50%.
The 3 year average ROIC (4.57%) for EFXT is below the current ROIC(10.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROIC | 10.31% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.57%
ROIC(5y)4.21%
1.3 Margins
With a Profit Margin value of 3.18%, EFXT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
EFXT's Profit Margin has declined in the last couple of years.
The Operating Margin of EFXT (10.27%) is comparable to the rest of the industry.
EFXT's Operating Margin has declined in the last couple of years.
EFXT has a Gross Margin (23.41%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EFXT 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EFXT is still creating some value.
The number of shares outstanding for EFXT remains at a similar level compared to 1 year ago.
The number of shares outstanding for EFXT has been increased compared to 5 years ago.
EFXT has a better debt/assets ratio than last year.
2.2 Solvency
EFXT has an Altman-Z score of 1.58. This is a bad value and indicates that EFXT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.58, EFXT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
EFXT has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as EFXT 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, EFXT is in the better half of the industry, outperforming 65.08% of the companies in the same industry.
EFXT has a Debt/Equity ratio of 0.64. This is a neutral value indicating EFXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, EFXT is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.23
WACC8.37%
2.3 Liquidity
EFXT has a Current Ratio of 1.12. This is a normal value and indicates that EFXT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of EFXT (1.12) is worse than 88.89% of its industry peers.
EFXT has a Quick Ratio of 1.12. This is a bad value and indicates that EFXT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.83, EFXT is doing worse than 87.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
EFXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.30%, which is quite impressive.
EFXT 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.
Measured over the past years, EFXT 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
EFXT 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
EFXT is valuated correctly with a Price/Earnings ratio of 13.41.
Based on the Price/Earnings ratio, EFXT is valued a bit cheaper than 69.84% of the companies in the same industry.
EFXT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
EFXT is valuated reasonably with a Price/Forward Earnings ratio of 9.15.
EFXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EFXT is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.41. EFXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
82.54% of the companies in the same industry are more expensive than EFXT, based on the Enterprise Value to EBITDA ratio.
EFXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EFXT is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.01 | ||
| EV/EBITDA | 3.82 |
4.3 Compensation for Growth
EFXT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EFXT'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
EFXT has a Yearly Dividend Yield of 1.41%.
EFXT's Dividend Yield is a higher than the industry average which is at 3.47.
Compared to an average S&P500 Dividend Yield of 2.40, EFXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of EFXT decreases each year by -29.59%.
EFXT has been paying a dividend for at least 10 years, so it has a reliable track record.
EFXT 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 EFXT. This is a low number and sustainable payout ratio.
DP17.57%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
7.91
+0.04 (+0.51%)
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 Cap982.03M
Analysts76.36
Price Target10.43 (31.86%)
Short Float %1.19%
Short Ratio3.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.07
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)-1.69%
PT rev (3m)-2.18%
EPS NQ rev (1m)9.52%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)28.67%
Revenue NQ rev (1m)-10.49%
Revenue NQ rev (3m)-10.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.42 | ||
| P/FCF | 4.01 | ||
| P/OCF | 3.08 | ||
| P/B | 0.91 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 3.82 |
EPS(TTM)0.59
EY7.46%
EPS(NY)0.86
Fwd EY10.93%
FCF(TTM)1.97
FCFY24.95%
OCF(TTM)2.57
OCFY32.48%
SpS18.75
BVpS8.66
TBVpS4.97
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROCE | 13.05% | ||
| ROIC | 10.31% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 14.59% | ||
| 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)4.57%
ROIC(5y)4.21%
ROICexc(3y)4.85%
ROICexc(5y)4.5%
ROICexgc(3y)6.5%
ROICexgc(5y)6.31%
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 | 1.58 |
F-Score6
WACC8.37%
ROIC/WACC1.23
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%