CHAMPIONX CORP (CHX) Stock Fundamental Analysis
NASDAQ:CHX - Nasdaq - US15872M1045 - Common Stock - Currency: USD
CHX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 59 industry peers in the Energy Equipment & Services industry. CHX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CHX has a correct valuation and a medium growth rate. These ratings could make CHX a good candidate for quality investing.
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.
Of the past 5 years CHX 4 years were profitable.
Each year in the past 5 years CHX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.23%, CHX is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.35%, CHX is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
CHX's Return On Invested Capital of 14.36% is amongst the best of the industry. CHX outperforms 91.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHX is significantly above the industry average of 8.11%.
The 3 year average ROIC (13.65%) for CHX is below the current ROIC(14.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.23% | ||
| ROE | 17.35% | ||
| ROIC | 14.36% |
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
With a decent Profit Margin value of 8.81%, CHX is doing good in the industry, outperforming 65.52% of the companies in the same industry.
CHX's Profit Margin has improved in the last couple of years.
CHX has a Operating Margin of 14.23%. This is in the better half of the industry: CHX outperforms 70.69% of its industry peers.
CHX's Operating Margin has improved in the last couple of years.
The Gross Margin of CHX (32.85%) is better than 62.07% of its industry peers.
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 | 14.23% | ||
| PM (TTM) | 8.81% | ||
| GM | 32.85% |
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
CHX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CHX has less shares outstanding than it did 1 year ago.
CHX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CHX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.81 indicates that CHX is not in any danger for bankruptcy at the moment.
The Altman-Z score of CHX (3.81) is better than 87.93% of its industry peers.
The Debt to FCF ratio of CHX is 1.33, which is an excellent value as it means it would take CHX, only 1.33 years of fcf income to pay off all of its debts.
CHX has a Debt to FCF ratio of 1.33. This is amongst the best in the industry. CHX outperforms 86.21% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that CHX is not too dependend on debt financing.
CHX has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.33 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.59
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.99 indicates that CHX should not have too much problems paying its short term obligations.
The Current ratio of CHX (1.99) is comparable to the rest of the industry.
CHX has a Quick Ratio of 1.36. This is a normal value and indicates that CHX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.36, CHX is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CHX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.47% over the past year.
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 -3.31% 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)6.47%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%13.64%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-3.34%
3.2 Future
The Earnings Per Share is expected to grow by 13.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.33% on average over the next years.
EPS Next Y15.32%
EPS Next 2Y14.33%
EPS Next 3Y16.18%
EPS Next 5Y13.19%
Revenue Next Year2.17%
Revenue Next 2Y3.13%
Revenue Next 3Y7.05%
Revenue Next 5Y6.33%
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
A Price/Earnings ratio of 15.75 indicates a correct valuation of CHX.
62.07% of the companies in the same industry are more expensive than CHX, based on the Price/Earnings ratio.
CHX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.98.
With a Price/Forward Earnings ratio of 13.65, CHX is valued correctly.
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 (22.66), we can say CHX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.65 |
4.2 Price Multiples
CHX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CHX is more expensive than 68.97% of the companies in the same industry.
65.52% of the companies in the same industry are more expensive than CHX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 7.57 |
4.3 Compensation for Growth
CHX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CHX has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CHX's earnings are expected to grow with 16.18% in the coming years.
PEG (NY)1.03
PEG (5Y)1.42
EPS Next 2Y14.33%
EPS Next 3Y16.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, CHX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.68, CHX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.30, CHX pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 22.02% of its income as dividend. This is a sustainable payout ratio.
DP22.02%
EPS Next 2Y14.33%
EPS Next 3Y16.18%
NASDAQ:CHX (3/3/2025, 3:04:05 PM)
28.5
-1.3 (-4.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change0.88%
Ins Owners1.36%
Ins Owner Change19.85%
Market Cap5.44B
Analysts86
Price Target42.55 (49.3%)
Short Float %4.46%
Short Ratio3.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.37
Dividend Growth(5Y)-47.78%
DP22.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.14%
Min EPS beat(2)-4.63%
Max EPS beat(2)0.36%
EPS beat(4)2
Avg EPS beat(4)-0.2%
Min EPS beat(4)-19.69%
Max EPS beat(4)23.18%
EPS beat(8)4
Avg EPS beat(8)-1.07%
EPS beat(12)8
Avg EPS beat(12)1.07%
EPS beat(16)11
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.44%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-3.39%
Min Revenue beat(4)-7.8%
Max Revenue beat(4)-0.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.6%
Revenue beat(12)3
Avg Revenue beat(12)-1.36%
Revenue beat(16)6
Avg Revenue beat(16)-0.79%
PT rev (1m)-3.95%
PT rev (3m)-5.73%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)6.21%
EPS NY rev (1m)0%
EPS NY rev (3m)7.11%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)1.66%
Revenue NY rev (1m)-1.72%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.75 | ||
| Fwd PE | 13.65 | ||
| P/S | 1.5 | ||
| P/FCF | 12.13 | ||
| P/OCF | 9.22 | ||
| P/B | 2.95 | ||
| P/tB | 6.26 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)1.81
EY6.35%
EPS(NY)2.09
Fwd EY7.32%
FCF(TTM)2.35
FCFY8.25%
OCF(TTM)3.09
OCFY10.84%
SpS19.05
BVpS9.68
TBVpS4.55
PEG (NY)1.03
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.23% | ||
| ROE | 17.35% | ||
| ROCE | 19.27% | ||
| ROIC | 14.36% | ||
| ROICexc | 17.71% | ||
| ROICexgc | 32.15% | ||
| OM | 14.23% | ||
| PM (TTM) | 8.81% | ||
| GM | 32.85% | ||
| FCFM | 12.34% |
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-Score7
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.33 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 57.48% | ||
| Cap/Sales | 3.89% | ||
| Interest Coverage | 9.92 | ||
| Cash Conversion | 77.28% | ||
| Profit Quality | 140% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 3.81 |
F-Score7
WACC9.01%
ROIC/WACC1.59
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)6.47%
EPS 3Y44.49%
EPS 5Y11.09%
EPS Q2Q%13.64%
EPS Next Y15.32%
EPS Next 2Y14.33%
EPS Next 3Y16.18%
EPS Next 5Y13.19%
Revenue 1Y (TTM)-3.31%
Revenue growth 3Y5.73%
Revenue growth 5Y26.29%
Sales Q2Q%-3.34%
Revenue Next Year2.17%
Revenue Next 2Y3.13%
Revenue Next 3Y7.05%
Revenue Next 5Y6.33%
EBIT growth 1Y0.84%
EBIT growth 3Y40.57%
EBIT growth 5Y37.22%
EBIT Next Year58.14%
EBIT Next 3Y21.67%
EBIT Next 5Y16.22%
FCF growth 1Y12.67%
FCF growth 3Y22.54%
FCF growth 5Y31.03%
OCF growth 1Y9.15%
OCF growth 3Y21.57%
OCF growth 5Y30.48%