25.81 USD
-0.79 (-2.97%)
25.83 USD
+0.02 (+0.08%)
CHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 62 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CHX was profitable.
- CHX had a positive operating cash flow in the past year.
- CHX had positive earnings in 4 of the past 5 years.
- In the past 5 years CHX always reported a positive cash flow from operatings.
1.2 Ratios
- CHX's Return On Assets of 8.37% is fine compared to the rest of the industry. CHX outperforms 79.03% of its industry peers.
- CHX has a better Return On Equity (15.29%) than 77.42% of its industry peers.
- CHX has a better Return On Invested Capital (14.15%) than 88.71% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CHX is in line with the industry average of 12.77%.
- 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
- With a decent Profit Margin value of 8.20%, CHX is doing good in the industry, outperforming 66.13% of the companies in the same industry.
- In the last couple of years the Profit Margin of CHX has grown nicely.
- Looking at the Operating Margin, with a value of 14.41%, CHX is in the better half of the industry, outperforming 72.58% of the companies in the same industry.
- CHX's Operating Margin has improved in the last couple of years.
- CHX's Gross Margin of 33.16% is fine compared to the rest of the industry. CHX outperforms 62.90% of its industry peers.
- 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.
- 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 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.65 indicates that CHX is not in any danger for bankruptcy at the moment.
- CHX's Altman-Z score of 3.65 is amongst the best of the industry. CHX outperforms 85.48% of its industry peers.
- The Debt to FCF ratio of CHX is 1.74, which is an excellent value as it means it would take CHX, only 1.74 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.74, CHX belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
- A Debt/Equity ratio of 0.31 indicates that CHX is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.31, CHX is doing good in the industry, outperforming 61.29% of the companies in the same industry.
| 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.
- CHX has a Quick ratio of 1.62. This is in the better half of the industry: CHX outperforms 61.29% of its industry peers.
| 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%.
- CHX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
- 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
- CHX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.80% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less 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 correctly with a Price/Earnings ratio of 14.26.
- Based on the Price/Earnings ratio, CHX is valued a bit cheaper than 64.52% of the companies in the same industry.
- CHX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 13.24 indicates a correct valuation of CHX.
- CHX's Price/Forward Earnings ratio is in line with the industry average.
- CHX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, 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
- CHX's Enterprise Value to EBITDA is on the same level as 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 CHX does not grow enough to justify the current Price/Earnings ratio.
- CHX has a very decent profitability rating, which 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 1.17.
- CHX's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
- The dividend of CHX decreases each year by -47.78%.
- CHX has paid a dividend for less than 5 years, so there is no long track record yet.
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%
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.
Can you provide the valuation status for CHAMPIONX CORP?
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.
Can you provide the expected EPS growth for CHX stock?
The Earnings per Share (EPS) of CHAMPIONX CORP (CHX) is expected to grow by 6.36% in the next year.
Is the dividend of CHAMPIONX CORP sustainable?
The dividend rating of CHAMPIONX CORP (CHX) is 3 / 10 and the dividend payout ratio is 24.7%.