ENERFLEX LTD (EFXT) Stock Fundamental Analysis
NYSE:EFXT - New York Stock Exchange, Inc. - CA29269R1055 - Common Stock - Currency: USD
Taking everything into account, EFXT scores 4 out of 10 in our fundamental rating. EFXT was compared to 63 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.
EFXT had a positive operating cash flow in the past year.
In multiple years EFXT reported negative net income over the last 5 years.
Each year in the past 5 years EFXT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EFXT (2.68%) is comparable to the rest of the industry.
EFXT has a Return On Equity of 6.88%. This is comparable to the rest of the industry: EFXT outperforms 46.77% of its industry peers.
EFXT's Return On Invested Capital of 10.31% is fine compared to the rest of the industry. EFXT outperforms 75.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EFXT is below the industry average of 8.69%.
The last Return On Invested Capital (10.31%) for EFXT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| 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
EFXT has a worse Profit Margin (3.18%) than 66.13% of its industry peers.
In the last couple of years the Profit Margin of EFXT has declined.
The Operating Margin of EFXT (10.27%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EFXT has declined.
EFXT has a Gross Margin of 23.41%. This is comparable to the rest of the industry: EFXT outperforms 45.16% of its industry peers.
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.
Compared to 1 year ago, EFXT has about the same amount of shares outstanding.
EFXT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EFXT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that EFXT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EFXT (1.53) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of EFXT (2.89) is better than 67.74% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that 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: 66.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.05
WACC9.83%
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.
EFXT's Current ratio of 1.12 is on the low side compared to the rest of the industry. EFXT is outperformed by 90.32% 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.
EFXT's Quick ratio of 0.83 is on the low side compared to the rest of the industry. EFXT is outperformed by 90.32% of its industry peers.
| 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.
EFXT shows a decrease in Revenue. In the last year, the revenue decreased by -8.76%.
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
The Earnings Per Share is expected to grow by 47.84% on average over the next years. This is a very strong growth
Based on estimates for the next years, EFXT will show a small growth in Revenue. The Revenue will grow by 0.06% on average per year.
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
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
A Price/Earnings ratio of 11.95 indicates a reasonable valuation of EFXT.
EFXT's Price/Earnings ratio is a bit cheaper when compared to the industry. EFXT is cheaper than 62.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, EFXT is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.15, the valuation of EFXT can be described as reasonable.
80.65% of the companies in the same industry are more expensive than EFXT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. EFXT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
77.42% of the companies in the same industry are more expensive than EFXT, based on the Enterprise Value to EBITDA ratio.
95.16% of the companies in the same industry are more expensive than EFXT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 3.51 |
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.
A more expensive valuation may be justified as EFXT's earnings are expected to grow with 47.84% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y85.94%
EPS Next 3Y47.84%
5. Dividend
5.1 Amount
EFXT has a Yearly Dividend Yield of 1.57%.
The stock price of EFXT dropped by -21.40% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.06, EFXT pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, EFXT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
5.2 History
The dividend of EFXT decreases each year by -29.59%.
EFXT has paid a dividend for at least 10 years, which is 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%
7.05
+0.2 (+2.92%)
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 Cap875.26M
Analysts76.36
Price Target10.61 (50.5%)
Short Float %1.32%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)-0.89%
PT rev (3m)0.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)101.73%
EPS NY rev (1m)0%
EPS NY rev (3m)33.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)19.79%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)10.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 8.15 | ||
| P/S | 0.38 | ||
| P/FCF | 3.57 | ||
| P/OCF | 2.74 | ||
| P/B | 0.81 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 3.51 |
EPS(TTM)0.59
EY8.37%
EPS(NY)0.86
Fwd EY12.26%
FCF(TTM)1.97
FCFY27.99%
OCF(TTM)2.57
OCFY36.45%
SpS18.75
BVpS8.66
TBVpS4.97
PEG (NY)0.05
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 | 1.53 |
F-Score6
WACC9.83%
ROIC/WACC1.05
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 Year166.42%
EBIT Next 3Y39.77%
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%