CHAMPIONX CORP (CHX) Stock Fundamental Analysis
USA - NASDAQ:CHX - US15872M1045 - Common Stock
25.81 USD
-0.79 (-2.97%)
25.83 USD
+0.02 (+0.08%)
We assign a fundamental rating of 6 out of 10 to CHX. CHX was compared to 60 industry peers in the Energy Equipment & Services industry. CHX gets an excellent profitability rating and is at the same time showing great financial health properties. CHX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CHX had positive earnings in the past year.
CHX had a positive operating cash flow in the past year.
Of the past 5 years CHX 4 years were profitable.
CHX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CHX has a Return On Assets of 8.37%. This is in the better half of the industry: CHX outperforms 79.03% of its industry peers.
CHX's Return On Equity of 15.29% is fine compared to the rest of the industry. CHX outperforms 77.42% of its industry peers.
CHX has a Return On Invested Capital of 14.15%. This is amongst the best in the industry. CHX outperforms 88.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CHX is significantly above the industry average of 7.85%.
The 3 year average ROIC (13.65%) for CHX is below the current ROIC(14.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROIC | 14.15% |
ROA(3y)7.83%
ROA(5y)1.06%
ROE(3y)15.08%
ROE(5y)1.18%
ROIC(3y)13.65%
ROIC(5y)9.48%
1.3 Margins
CHX has a Profit Margin of 8.20%. This is in the better half of the industry: CHX outperforms 66.13% of its industry peers.
CHX's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 14.41%, CHX is doing good in the industry, outperforming 72.58% of the companies in the same industry.
CHX's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 33.16%, CHX is doing good in the industry, outperforming 62.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CHX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.41% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.16% |
OM growth 3Y32.96%
OM growth 5Y8.66%
PM growth 3Y33.74%
PM growth 5Y13.82%
GM growth 3Y10.44%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CHX is creating some value.
CHX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CHX has more shares outstanding
CHX has a better debt/assets ratio than last year.
2.2 Solvency
CHX has an Altman-Z score of 3.65. This indicates that CHX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, CHX belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
CHX has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.
CHX has a Debt to FCF ratio of 1.74. This is amongst the best in the industry. CHX outperforms 80.65% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that CHX is not too dependend on debt financing.
CHX's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. CHX outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Altman-Z | 3.65 |
ROIC/WACC1.51
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.25 indicates that CHX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.25, CHX is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
CHX has a Quick Ratio of 1.62. This is a normal value and indicates that CHX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.62, CHX is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
CHX shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.63%.
Measured over the past years, CHX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
Looking at the last year, CHX shows a decrease in Revenue. The Revenue has decreased by -4.17% in the last year.
The Revenue has been growing by 26.29% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1.63%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-6.25%
3.2 Future
Based on estimates for the next years, CHX will show a small growth in Earnings Per Share. The EPS will grow by 6.80% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y6.36%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
EPS Next 5Y6.8%
Revenue Next Year-5.3%
Revenue Next 2Y-2.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.82%
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 decreasing.
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 14.26, which indicates a correct valuation of CHX.
Compared to the rest of the industry, the Price/Earnings ratio of CHX indicates a somewhat cheap valuation: CHX is cheaper than 64.52% of the companies listed in the same industry.
CHX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.24, the valuation of CHX can be described as correct.
CHX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CHX to the average of the S&P500 Index (22.50), we can say CHX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
CHX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.43 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CHX may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)1.29
EPS Next 2Y3.8%
EPS Next 3Y5.08%
5. Dividend
5.1 Amount
CHX has a Yearly Dividend Yield of 1.47%.
Compared to an average industry Dividend Yield of 3.01, CHX pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, CHX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of CHX decreases each year by -47.78%.
CHX has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)-47.78%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
CHX pays out 24.70% of its income as dividend. This is a sustainable payout ratio.
DP24.7%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
25.81
-0.79 (-2.97%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.44%
Inst Owner Change-2.21%
Ins Owners0.99%
Ins Owner Change-2004.42%
Market Cap4.94B
Revenue(TTM)3.58B
Net Income(TTM)293.14M
Analysts86.67
Price Target42.23 (63.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend0.37
Dividend Growth(5Y)-47.78%
DP24.7%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.44%
Min EPS beat(2)0.36%
Max EPS beat(2)14.53%
EPS beat(4)2
Avg EPS beat(4)-2.36%
Min EPS beat(4)-19.69%
Max EPS beat(4)14.53%
EPS beat(8)4
Avg EPS beat(8)0.56%
EPS beat(12)8
Avg EPS beat(12)1.75%
EPS beat(16)11
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-4.47%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-4.29%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-3.77%
Revenue beat(12)2
Avg Revenue beat(12)-2.06%
Revenue beat(16)5
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)-1.9%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-4.17%
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-10.47%
Revenue NQ rev (1m)-1.62%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)-2.24%
Revenue NY rev (3m)-7.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.38 | ||
| P/FCF | 14.43 | ||
| P/OCF | 10.23 | ||
| P/B | 2.58 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.81
EY7.01%
EPS(NY)1.95
Fwd EY7.56%
FCF(TTM)1.79
FCFY6.93%
OCF(TTM)2.52
OCFY9.77%
SpS18.68
BVpS10.01
TBVpS5.48
PEG (NY)2.24
PEG (5Y)1.29
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.37% | ||
| ROE | 15.29% | ||
| ROCE | 18.98% | ||
| ROIC | 14.15% | ||
| ROICexc | 17.55% | ||
| ROICexgc | 29.07% | ||
| OM | 14.41% | ||
| PM (TTM) | 8.2% | ||
| GM | 33.16% | ||
| FCFM | 9.57% |
ROA(3y)7.83%
ROA(5y)1.06%
ROE(3y)15.08%
ROE(5y)1.18%
ROIC(3y)13.65%
ROIC(5y)9.48%
ROICexc(3y)15.86%
ROICexc(5y)10.93%
ROICexgc(3y)28.04%
ROICexgc(5y)19.36%
ROCE(3y)18.31%
ROCE(5y)12.72%
ROICexgc growth 3Y47.18%
ROICexgc growth 5Y16.9%
ROICexc growth 3Y46.83%
ROICexc growth 5Y30.42%
OM growth 3Y32.96%
OM growth 5Y8.66%
PM growth 3Y33.74%
PM growth 5Y13.82%
GM growth 3Y10.44%
GM growth 5Y-0.48%
F-Score6
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.74 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 57.1% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.4% | ||
| Profit Quality | 116.78% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 3.65 |
F-Score6
WACC9.37%
ROIC/WACC1.51
Cap/Depr(3y)53.43%
Cap/Depr(5y)43.4%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.1%
Profit Quality(3y)155.68%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.63%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%0%
EPS Next Y6.36%
EPS Next 2Y3.8%
EPS Next 3Y5.08%
EPS Next 5Y6.8%
Revenue 1Y (TTM)-4.17%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-6.25%
Revenue Next Year-5.3%
Revenue Next 2Y-2.49%
Revenue Next 3Y-1.12%
Revenue Next 5Y2.82%
EBIT growth 1Y0.17%
EBIT growth 3Y40.57%
EBIT growth 5Y37.22%
EBIT Next Year52.58%
EBIT Next 3Y14.47%
EBIT Next 5Y9.48%
FCF growth 1Y-23.96%
FCF growth 3Y22.54%
FCF growth 5Y31.03%
OCF growth 1Y-12.01%
OCF growth 3Y21.57%
OCF growth 5Y30.48%
CHAMPIONX CORP / CHX FAQ
What is the ChartMill fundamental rating of CHAMPIONX CORP (CHX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to CHX.
What is the valuation status of CHAMPIONX CORP (CHX) stock?
ChartMill assigns a valuation rating of 4 / 10 to CHAMPIONX CORP (CHX). This can be considered as Fairly Valued.
What is the profitability of CHX stock?
CHAMPIONX CORP (CHX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CHAMPIONX CORP (CHX) stock?
The Price/Earnings (PE) ratio for CHAMPIONX CORP (CHX) is 14.26 and the Price/Book (PB) ratio is 2.58.
What is the earnings growth outlook for CHAMPIONX CORP?
The Earnings per Share (EPS) of CHAMPIONX CORP (CHX) is expected to grow by 6.36% in the next year.