ACT ENERGY TECHNOLOGIES LTD (ACX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACX - CA0049591021 - Common Stock
5.92 CAD
+0.24 (+4.23%)
Taking everything into account, ACX scores 4 out of 10 in our fundamental rating. ACX was compared to 27 industry peers in the Energy Equipment & Services industry. The financial health of ACX is average, but there are quite some concerns on its profitability. ACX is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- ACX had positive earnings in the past year.
- In the past year ACX had a positive cash flow from operations.
- In multiple years ACX reported negative net income over the last 5 years.
- Of the past 5 years ACX 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.97%, ACX is in line with its industry, outperforming 59.26% of the companies in the same industry.
- ACX has a Return On Equity of 10.96%. This is comparable to the rest of the industry: ACX outperforms 51.85% of its industry peers.
- ACX's Return On Invested Capital of 5.55% is on the low side compared to the rest of the industry. ACX is outperformed by 62.96% of its industry peers.
- ACX had an Average Return On Invested Capital over the past 3 years of 7.96%. This is significantly below the industry average of 169.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.97% | ||
| ROE | 10.96% | ||
| ROIC | 5.55% |
ROA(3y)6.69%
ROA(5y)-6.89%
ROE(3y)13.94%
ROE(5y)-9.55%
ROIC(3y)7.96%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 5.54%, ACX is in line with its industry, outperforming 59.26% of the companies in the same industry.
- Looking at the Operating Margin, with a value of 7.09%, ACX is in line with its industry, outperforming 44.44% of the companies in the same industry.
- ACX has a Gross Margin (21.97%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.09% | ||
| PM (TTM) | 5.54% | ||
| GM | 21.97% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ACX is still creating some value.
- Compared to 1 year ago, ACX has less shares outstanding
- Compared to 5 years ago, ACX has less shares outstanding
- The debt/assets ratio for ACX has been reduced compared to a year ago.
2.2 Solvency
- ACX has an Altman-Z score of 2.11. This is not the best score and indicates that ACX is in the grey zone with still only limited risk for bankruptcy at the moment.
- ACX has a Altman-Z score (2.11) which is in line with its industry peers.
- ACX has a debt to FCF ratio of 3.18. This is a good value and a sign of high solvency as ACX would need 3.18 years to pay back of all of its debts.
- ACX has a Debt to FCF ratio of 3.18. This is amongst the best in the industry. ACX outperforms 81.48% of its industry peers.
- A Debt/Equity ratio of 0.28 indicates that ACX is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.28, ACX perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.77
WACC7.21%
2.3 Liquidity
- A Current Ratio of 1.43 indicates that ACX should not have too much problems paying its short term obligations.
- ACX has a worse Current ratio (1.43) than 62.96% of its industry peers.
- A Quick Ratio of 1.03 indicates that ACX should not have too much problems paying its short term obligations.
- ACX has a Quick ratio (1.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
- ACX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.88%.
- Looking at the last year, ACX shows a very negative growth in Revenue. The Revenue has decreased by -16.20% in the last year.
- The Revenue has been growing by 36.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-41.88%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-39.71%
Revenue 1Y (TTM)-16.2%
Revenue growth 3Y109.12%
Revenue growth 5Y36.58%
Sales Q2Q%-20.34%
3.2 Future
- Based on estimates for the next years, ACX will show a decrease in Earnings Per Share. The EPS will decrease by -6.44% on average per year.
- Based on estimates for the next years, ACX will show a decrease in Revenue. The Revenue will decrease by -3.40% on average per year.
EPS Next Y-73.04%
EPS Next 2Y-17.8%
EPS Next 3Y-6.44%
EPS Next 5YN/A
Revenue Next Year-16.94%
Revenue Next 2Y-10.09%
Revenue Next 3Y-5.89%
Revenue Next 5Y-3.4%
3.3 Evolution
- 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
- The Price/Earnings ratio is 8.71, which indicates a very decent valuation of ACX.
- Compared to the rest of the industry, the Price/Earnings ratio of ACX indicates a rather cheap valuation: ACX is cheaper than 81.48% of the companies listed in the same industry.
- ACX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 5.92, the valuation of ACX can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ACX indicates a rather cheap valuation: ACX is cheaper than 96.30% of the companies listed in the same industry.
- ACX is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 5.92 |
4.2 Price Multiples
- 77.78% of the companies in the same industry are more expensive than ACX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ACX is valued cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
- A cheap valuation may be justified as ACX's earnings are expected to decrease with -6.44% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-17.8%
EPS Next 3Y-6.44%
5. Dividend
5.1 Amount
- No dividends for ACX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ACT ENERGY TECHNOLOGIES LTD / ACX.CA FAQ
Can you provide the ChartMill fundamental rating for ACT ENERGY TECHNOLOGIES LTD?
ChartMill assigns a fundamental rating of 4 / 10 to ACX.CA.
Can you provide the valuation status for ACT ENERGY TECHNOLOGIES LTD?
ChartMill assigns a valuation rating of 7 / 10 to ACT ENERGY TECHNOLOGIES LTD (ACX.CA). This can be considered as Undervalued.
How profitable is ACT ENERGY TECHNOLOGIES LTD (ACX.CA) stock?
ACT ENERGY TECHNOLOGIES LTD (ACX.CA) has a profitability rating of 3 / 10.
Can you provide the financial health for ACX stock?
The financial health rating of ACT ENERGY TECHNOLOGIES LTD (ACX.CA) is 6 / 10.
Is the dividend of ACT ENERGY TECHNOLOGIES LTD sustainable?
The dividend rating of ACT ENERGY TECHNOLOGIES LTD (ACX.CA) is 0 / 10 and the dividend payout ratio is 0%.