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 61 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 decent growth rate and is not valued too expensively.
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.
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
With a decent Return On Assets value of 8.37%, CHX is doing good in the industry, outperforming 79.03% of the companies in the same industry.
CHX has a better Return On Equity (15.29%) than 77.42% of its industry peers.
With an excellent Return On Invested Capital value of 14.15%, CHX belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CHX is significantly above the industry average of 8.01%.
The last Return On Invested Capital (14.15%) for CHX is above the 3 year average (13.65%), which is a sign of increasing profitability.
| 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's Profit Margin of 8.20% is fine compared to the rest of the industry. CHX outperforms 66.13% of its industry peers.
CHX's Profit Margin has improved in the last couple of years.
CHX has a better Operating Margin (14.41%) than 72.58% of its industry peers.
CHX's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 33.16%, CHX is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
CHX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, CHX has less shares outstanding
The number of shares outstanding for CHX has been increased compared to 5 years ago.
The debt/assets ratio for CHX has been reduced compared to a year ago.
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.
The Altman-Z score of CHX (3.65) is better than 85.48% of its industry peers.
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's Debt to FCF ratio of 1.74 is amongst the best of the industry. CHX outperforms 80.65% of its industry peers.
CHX has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
CHX has a better Debt to Equity ratio (0.31) than 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
CHX has a Current Ratio of 2.25. This indicates that CHX is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.25, CHX is doing good in the industry, outperforming 67.74% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that CHX should not have too much problems paying its short term obligations.
The Quick ratio of CHX (1.62) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for CHX have decreased by -1.63% in the last year.
CHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
CHX shows a decrease in Revenue. In the last year, the revenue decreased by -4.17%.
Measured over the past years, CHX shows a very strong growth in Revenue. The Revenue has been growing by 26.29% on average per year.
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.
CHX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
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.
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
CHX is valuated correctly with a Price/Earnings ratio of 14.26.
CHX's Price/Earnings ratio is a bit cheaper when compared to the industry. CHX is cheaper than 64.52% of the companies in the same industry.
CHX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.24, which indicates a correct valuation of CHX.
The rest of the industry has a similar Price/Forward Earnings ratio as CHX.
CHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.26 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CHX.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHX is on the same level as its industry peers.
| 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%. Purely for dividend investing, there may be better candidates out there.
CHX's Dividend Yield is a higher than the industry average which is at 3.34.
CHX's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| 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
24.70% of the earnings are spent on dividend by CHX. This is a low number and 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-0.75%
Ins Owners0.99%
Ins Owner Change-2004.42%
Market Cap4.94B
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
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%
ROICexcg growth 3Y47.18%
ROICexcg 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%