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 62 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. EFXT is valued quite cheap, while showing a decent growth score. This is a good 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.
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
The Return On Assets of EFXT (2.68%) is comparable to the rest of the industry.
EFXT has a Return On Equity (6.88%) which is in line with its industry peers.
EFXT has a better Return On Invested Capital (10.31%) than 77.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EFXT is below the industry average of 8.42%.
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 67.74% of its industry peers.
EFXT's Profit Margin has declined in the last couple of years.
EFXT has a Operating Margin of 10.27%. This is comparable to the rest of the industry: EFXT outperforms 50.00% of its industry peers.
EFXT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 23.41%, EFXT perfoms like the industry average, outperforming 43.55% of the companies in the same industry.
EFXT's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFXT is 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 1.58, we must say that EFXT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of EFXT (1.58) is comparable to the rest of the industry.
The Debt to FCF ratio of EFXT is 2.89, which is a good value as it means it would take EFXT, 2.89 years of fcf income to pay off all of its debts.
EFXT's Debt to FCF ratio of 2.89 is fine compared to the rest of the industry. EFXT outperforms 64.52% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that EFXT is somewhat dependend on debt financing.
EFXT has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: EFXT underperforms 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.04
WACC9.89%
2.3 Liquidity
A Current Ratio of 1.12 indicates that EFXT should not have too much problems paying its short term obligations.
EFXT has a worse Current ratio (1.12) than 88.71% 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 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 151.30% over the past year.
Measured over the past years, EFXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.76% on average per year.
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.
EFXT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.42% yearly.
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
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
Based on the Price/Earnings ratio of 13.53, the valuation of EFXT can be described as correct.
Based on the Price/Earnings ratio, EFXT is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EFXT to the average of the S&P500 Index (27.50), we can say EFXT is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.23, the valuation of EFXT can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EFXT is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EFXT to the average of the S&P500 Index (36.44), we can say EFXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EFXT is valued a bit cheaper than 75.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFXT indicates a rather cheap valuation: EFXT is cheaper than 95.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.01 | ||
| EV/EBITDA | 3.83 |
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 1.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.63, EFXT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, EFXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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%
7.98
+0.01 (+0.13%)
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 Cap982.18M
Analysts76.36
Price Target10.87 (36.22%)
Short Float %1.42%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
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)55.71%
Min EPS beat(2)52.69%
Max EPS beat(2)58.73%
EPS beat(4)3
Avg EPS beat(4)124.98%
Min EPS beat(4)-16.5%
Max EPS beat(4)404.99%
EPS beat(8)4
Avg EPS beat(8)-1192.21%
EPS beat(12)5
Avg EPS beat(12)-1605.47%
EPS beat(16)5
Avg EPS beat(16)-1258.7%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)-0.36%
Revenue beat(4)2
Avg Revenue beat(4)17.52%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)49.54%
Revenue beat(8)5
Avg Revenue beat(8)15.86%
Revenue beat(12)9
Avg Revenue beat(12)14.61%
Revenue beat(16)11
Avg Revenue beat(16)10.98%
PT rev (1m)4.42%
PT rev (3m)1.74%
EPS NQ rev (1m)-10.32%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-8.89%
Revenue NQ rev (3m)-18.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.53 | ||
| Fwd PE | 9.23 | ||
| P/S | 0.42 | ||
| P/FCF | 4.01 | ||
| P/OCF | 3.08 | ||
| P/B | 0.91 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)0.59
EY7.39%
EPS(NY)0.86
Fwd EY10.83%
FCF(TTM)1.99
FCFY24.94%
OCF(TTM)2.59
OCFY32.48%
SpS18.91
BVpS8.73
TBVpS5.01
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
WACC9.89%
ROIC/WACC1.04
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%