CHAMPIONX CORP (CHX)
US15872M1045 - Common Stock
Overall CHX gets a fundamental rating of 5 out of 10. We evaluated CHX against 59 industry peers in the Energy Equipment & Services industry. While CHX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CHX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CHX was profitable.
In the past year CHX had a positive cash flow from operations.
CHX had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CHX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CHX (9.32%) is better than 76.27% of its industry peers.
CHX has a Return On Equity of 17.35%. This is in the better half of the industry: CHX outperforms 77.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.28%, CHX belongs to the top of the industry, outperforming 88.14% of the companies in the same industry.
CHX had an Average Return On Invested Capital over the past 3 years of 10.96%. This is above the industry average of 8.53%.
The 3 year average ROIC (10.96%) for CHX is below the current ROIC(14.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.35% | ||
| ROIC | 14.28% |
ROA(3y)5.82%
ROA(5y)-0.24%
ROE(3y)11.43%
ROE(5y)-1.28%
ROIC(3y)10.96%
ROIC(5y)7.81%
1.3 Margins
CHX has a better Profit Margin (8.59%) than 66.10% of its industry peers.
CHX's Profit Margin has improved in the last couple of years.
The Operating Margin of CHX (13.28%) is better than 67.80% of its industry peers.
CHX's Operating Margin has been stable in the last couple of years.
CHX has a better Gross Margin (31.76%) than 61.02% of its industry peers.
In the last couple of years the Gross Margin of CHX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.28% | ||
| PM (TTM) | 8.59% | ||
| GM | 31.76% |
OM growth 3Y70.52%
OM growth 5Y1.06%
PM growth 3YN/A
PM growth 5Y1.9%
GM growth 3Y10.92%
GM growth 5Y-2.57%
2. Health
2.1 Basic Checks
CHX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CHX has been reduced compared to 1 year ago.
The number of shares outstanding for CHX has been increased compared to 5 years ago.
The debt/assets ratio for CHX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.57 indicates that CHX is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHX (3.57) is better than 79.66% of its industry peers.
CHX has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.43, CHX is in the better half of the industry, outperforming 76.27% of the companies in the same industry.
CHX has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, CHX perfoms like the industry average, outperforming 52.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.61
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.94 indicates that CHX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.94, CHX perfoms like the industry average, outperforming 54.24% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that CHX should not have too much problems paying its short term obligations.
CHX's Quick ratio of 1.20 is on the low side compared to the rest of the industry. CHX is outperformed by 66.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% over the past year.
CHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.65% yearly.
CHX shows a decrease in Revenue. In the last year, the revenue decreased by -3.55%.
CHX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.27% yearly.
EPS 1Y (TTM)3.55%
EPS 3YN/A
EPS 5Y11.65%
EPS Q2Q%7.32%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y25.53%
Revenue growth 5Y25.27%
Sales Q2Q%-3.54%
3.2 Future
The Earnings Per Share is expected to grow by 13.53% on average over the next years. This is quite good.
Based on estimates for the next years, CHX will show a small growth in Revenue. The Revenue will grow by 4.80% on average per year.
EPS Next Y6.83%
EPS Next 2Y11.04%
EPS Next 3Y11.89%
EPS Next 5Y13.53%
Revenue Next Year-2.21%
Revenue Next 2Y0.84%
Revenue Next 3Y3.19%
Revenue Next 5Y4.8%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 14.86 indicates a correct valuation of CHX.
Based on the Price/Earnings ratio, CHX is valued a bit cheaper than 62.71% of the companies in the same industry.
CHX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.40, which indicates a correct valuation of CHX.
CHX's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CHX to the average of the S&P500 Index (23.68), we can say CHX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 12.4 |
4.2 Price Multiples
CHX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CHX is valued a bit cheaper than 62.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CHX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.17
PEG (5Y)1.28
EPS Next 2Y11.04%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CHX has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.70, CHX pays a bit more dividend than its industry peers.
CHX's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
CHX has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
21.96% of the earnings are spent on dividend by CHX. This is a low number and sustainable payout ratio.
DP21.96%
EPS Next 2Y11.04%
EPS Next 3Y11.89%
CHAMPIONX CORP
NASDAQ:CHX (12/23/2024, 1:00:33 PM)
26
+0.21 (+0.81%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change-3.54%
Ins Owners1.03%
Ins Owner Change1.44%
Market Cap4.95B
Analysts85.45
Price Target45.14 (73.62%)
Short Float %3.63%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)N/A
DP21.96%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.16%
Min EPS beat(2)-19.69%
Max EPS beat(2)-4.63%
EPS beat(4)1
Avg EPS beat(4)-0.43%
Min EPS beat(4)-19.69%
Max EPS beat(4)23.18%
EPS beat(8)4
Avg EPS beat(8)-0.48%
EPS beat(12)8
Avg EPS beat(12)1.54%
EPS beat(16)11
Avg EPS beat(16)5.21%
Revenue beat(2)0
Avg Revenue beat(2)-5.76%
Min Revenue beat(2)-7.8%
Max Revenue beat(2)-3.72%
Revenue beat(4)0
Avg Revenue beat(4)-3.46%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.88%
Revenue beat(12)3
Avg Revenue beat(12)-1.48%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)-2.21%
PT rev (3m)3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.52%
EPS NY rev (1m)1.42%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.2%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 12.4 | ||
| P/S | 1.35 | ||
| P/FCF | 11.83 | ||
| P/OCF | 8.98 | ||
| P/B | 2.73 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)1.75
EY6.73%
EPS(NY)2.1
Fwd EY8.06%
FCF(TTM)2.2
FCFY8.45%
OCF(TTM)2.89
OCFY11.13%
SpS19.24
BVpS9.52
TBVpS4.27
PEG (NY)2.17
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.35% | ||
| ROCE | 18.45% | ||
| ROIC | 14.28% | ||
| ROICexc | 16.75% | ||
| ROICexgc | 30.18% | ||
| OM | 13.28% | ||
| PM (TTM) | 8.59% | ||
| GM | 31.76% | ||
| FCFM | 11.42% |
ROA(3y)5.82%
ROA(5y)-0.24%
ROE(3y)11.43%
ROE(5y)-1.28%
ROIC(3y)10.96%
ROIC(5y)7.81%
ROICexc(3y)12.27%
ROICexc(5y)8.64%
ROICexgc(3y)21.48%
ROICexgc(5y)16.49%
ROCE(3y)14.16%
ROCE(5y)10.1%
ROICexcg growth 3Y126.6%
ROICexcg growth 5Y6.46%
ROICexc growth 3Y128.83%
ROICexc growth 5Y20.81%
OM growth 3Y70.52%
OM growth 5Y1.06%
PM growth 3YN/A
PM growth 5Y1.9%
GM growth 3Y10.92%
GM growth 5Y-2.57%
F-Score8
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 54.84% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.66% | ||
| Profit Quality | 133.04% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.57 |
F-Score8
WACC8.89%
ROIC/WACC1.61
Cap/Depr(3y)46.14%
Cap/Depr(5y)38.54%
Cap/Sales(3y)3.08%
Cap/Sales(5y)3.03%
Profit Quality(3y)180.71%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.55%
EPS 3YN/A
EPS 5Y11.65%
EPS Q2Q%7.32%
EPS Next Y6.83%
EPS Next 2Y11.04%
EPS Next 3Y11.89%
EPS Next 5Y13.53%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y25.53%
Revenue growth 5Y25.27%
Sales Q2Q%-3.54%
Revenue Next Year-2.21%
Revenue Next 2Y0.84%
Revenue Next 3Y3.19%
Revenue Next 5Y4.8%
EBIT growth 1Y-2.11%
EBIT growth 3Y114.05%
EBIT growth 5Y26.6%
EBIT Next Year53.77%
EBIT Next 3Y19.57%
EBIT Next 5Y14.76%
FCF growth 1Y95.28%
FCF growth 3Y14.54%
FCF growth 5Y30.29%
OCF growth 1Y79.79%
OCF growth 3Y20.34%
OCF growth 5Y26.94%