ENERFLEX LTD (EFXT) Stock Fundamental Analysis
NYSE:EFXT - New York Stock Exchange, Inc. - CA29269R1055 - Common Stock - Currency: USD
Overall EFXT gets a fundamental rating of 4 out of 10. We evaluated EFXT against 61 industry peers in the Energy Equipment & Services industry. There are concerns on the financial health of EFXT while its profitability can be described as average. EFXT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
EFXT has a Return On Assets (4.47%) which is comparable to the rest of the industry.
EFXT has a Return On Equity of 11.45%. This is in the better half of the industry: EFXT outperforms 68.85% of its industry peers.
EFXT has a Return On Invested Capital of 10.53%. This is in the better half of the industry: EFXT outperforms 78.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EFXT is below the industry average of 7.98%.
The last Return On Invested Capital (10.53%) for EFXT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROIC | 10.53% |
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
EFXT has a Profit Margin (5.54%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of EFXT has declined.
EFXT's Operating Margin of 10.99% is in line compared to the rest of the industry. EFXT outperforms 59.02% of its industry peers.
EFXT's Operating Margin has declined in the last couple of years.
EFXT has a Gross Margin (23.53%) which is in line with its industry peers.
EFXT's Gross Margin has been stable in the last couple of years.
| 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
EFXT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
EFXT has about the same amout of shares outstanding than it did 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
Based on the Altman-Z score of 1.64, we must say that EFXT is in the distress zone and has some risk of bankruptcy.
EFXT has a Altman-Z score (1.64) which is in line with its industry peers.
The Debt to FCF ratio of EFXT is 3.66, which is a good value as it means it would take EFXT, 3.66 years of fcf income to pay off all of its debts.
EFXT has a Debt to FCF ratio (3.66) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.65 indicates that EFXT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, EFXT is doing worse than 67.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.64 |
ROIC/WACC1.09
WACC9.65%
2.3 Liquidity
EFXT has a Current Ratio of 1.19. This is a normal value and indicates that EFXT is financially healthy and should not expect problems in meeting its short term obligations.
EFXT has a Current ratio of 1.19. This is amonst the worse of the industry: EFXT underperforms 85.25% of its industry peers.
A Quick Ratio of 0.88 indicates that EFXT may have some problems paying its short term obligations.
EFXT's Quick ratio of 0.88 is on the low side compared to the rest of the industry. EFXT is outperformed by 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
EFXT 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 EFXT have been decreasing by -31.76% on average. This is quite bad
The Revenue has decreased by -2.51% in the past year.
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
Based on estimates for the next years, EFXT will show a very strong growth in Earnings Per Share. The EPS will grow by 47.84% on average per year.
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-6.28%
Revenue Next 2Y-4.38%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 9.21, which indicates a very decent valuation of EFXT.
Based on the Price/Earnings ratio, EFXT is valued cheaper than 86.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of EFXT to the average of the S&P500 Index (26.73), we can say EFXT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.08, the valuation of EFXT can be described as reasonable.
Based on the Price/Forward Earnings ratio, EFXT is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.61, EFXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
EFXT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EFXT is cheaper than 75.41% of the companies in the same industry.
EFXT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EFXT is cheaper than 90.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.7 | ||
| EV/EBITDA | 4.19 |
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.
EFXT's earnings are expected to grow with 47.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y85.94%
EPS Next 3Y47.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, EFXT has a reasonable but not impressive dividend return.
EFXT's Dividend Yield is comparable with the industry average which is at 3.81.
With a Dividend Yield of 1.19, EFXT pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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
10.85% of the earnings are spent on dividend by EFXT. This is a low number and sustainable payout ratio.
DP10.85%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
9.58
+0.41 (+4.47%)
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 Cap1.17B
Analysts76.36
Price Target11.05 (15.34%)
Short Float %1.34%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend0.07
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)1.49%
PT rev (3m)4.19%
EPS NQ rev (1m)1.82%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.72%
Revenue NQ rev (3m)-19.03%
Revenue NY rev (1m)-2.1%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.5 | ||
| P/FCF | 5.7 | ||
| P/OCF | 3.88 | ||
| P/B | 1.04 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 4.19 |
EPS(TTM)1.04
EY10.86%
EPS(NY)0.86
Fwd EY9.02%
FCF(TTM)1.68
FCFY17.54%
OCF(TTM)2.47
OCFY25.8%
SpS19
BVpS9.19
TBVpS5.43
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROCE | 13.33% | ||
| ROIC | 10.53% | ||
| ROICexc | 10.96% | ||
| ROICexgc | 14.6% | ||
| 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)4.57%
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-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 | 1.64 |
F-Score7
WACC9.65%
ROIC/WACC1.09
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 Y219.88%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%0.16%
Revenue Next Year-6.28%
Revenue Next 2Y-4.38%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
EBIT growth 1Y54.85%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y22.75%
FCF growth 1Y216.29%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y1940.68%
OCF growth 3Y29.63%
OCF growth 5Y42.99%