CHAMPIONX CORP (CHX)
US15872M1045 - Common Stock
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 has an excellent profitability rating, but there are some minor concerns on its financial health. CHX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CHX was profitable.
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
With a decent Return On Assets value of 9.32%, CHX is doing good in the industry, outperforming 78.33% of the companies in the same industry.
CHX's Return On Equity of 17.35% is fine compared to the rest of the industry. CHX outperforms 80.00% of its industry peers.
CHX has a better Return On Invested Capital (14.28%) than 88.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHX is above the industry average of 8.29%.
The last Return On Invested Capital (14.28%) for CHX is above the 3 year average (10.96%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 8.59%, CHX is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CHX has grown nicely.
The Operating Margin of CHX (13.28%) is better than 70.00% of its industry peers.
In the last couple of years the Operating Margin of CHX has remained more or less at the same level.
CHX's Gross Margin of 31.76% is fine compared to the rest of the industry. CHX outperforms 63.33% of its industry peers.
CHX's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 1 year ago, CHX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.97 indicates that CHX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.97, CHX belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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.
CHX has a Debt to FCF ratio of 1.43. This is in the better half of the industry: CHX outperforms 76.67% of its industry peers.
CHX has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, CHX is in line with its industry, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 3.97 |
ROIC/WACC1.62
WACC8.84%
2.3 Liquidity
CHX has a Current Ratio of 1.94. 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 Current ratio, with a value of 1.94, CHX is in line with its industry, outperforming 53.33% of the companies in the same industry.
CHX has a Quick Ratio of 1.20. This is a normal value and indicates that CHX is financially healthy and should not expect problems in meeting its short term obligations.
CHX has a Quick ratio of 1.20. This is in the lower half of the industry: CHX underperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
CHX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
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
CHX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.99% yearly.
CHX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y5.34%
EPS Next 2Y8.38%
EPS Next 3Y13.28%
EPS Next 5Y11.99%
Revenue Next Year-2.26%
Revenue Next 2Y0.77%
Revenue Next 3Y3.55%
Revenue Next 5Y4.95%
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.
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
CHX is valuated rather expensively with a Price/Earnings ratio of 17.87.
Based on the Price/Earnings ratio, CHX is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.96, CHX is valued a bit cheaper.
CHX is valuated correctly with a Price/Forward Earnings ratio of 15.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, CHX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than CHX, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CHX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.23 | ||
| EV/EBITDA | 8.46 |
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.
CHX's earnings are expected to grow with 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.35
PEG (5Y)1.53
EPS Next 2Y8.38%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
CHX has a Yearly Dividend Yield of 1.23%. 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 3.50.
Compared to an average S&P500 Dividend Yield of 2.23, CHX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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 Years1
Div Non Decr Years1
5.3 Sustainability
CHX pays out 21.96% of its income as dividend. This is a sustainable payout ratio.
DP21.96%
EPS Next 2Y8.38%
EPS Next 3Y13.28%
CHAMPIONX CORP
NASDAQ:CHX (11/21/2024, 8:19:32 PM)
After market: 31.31 +0.03 (+0.1%)31.28
+0.58 (+1.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.87 | ||
| Fwd PE | 15.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.35
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.28% | ||
| PM (TTM) | 8.59% | ||
| GM | 31.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)3.55%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y5.34%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y25.53%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y