CHAMPIONX CORP (CHX) Stock Fundamental Analysis
NASDAQ:CHX - Nasdaq - US15872M1045 - Common Stock - Currency: USD
CHX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Energy Equipment & Services industry. CHX scores excellent on profitability, but there are some minor concerns on its financial health. CHX is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years CHX 4 years were profitable.
In the past 5 years CHX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CHX (9.32%) is better than 77.59% of its industry peers.
CHX has a Return On Equity of 17.35%. This is in the better half of the industry: CHX outperforms 77.59% of its industry peers.
CHX has a better Return On Invested Capital (14.97%) than 89.66% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CHX is above the industry average of 8.33%.
The last Return On Invested Capital (14.97%) 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 | 14.97% |
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's Profit Margin of 8.59% is fine compared to the rest of the industry. CHX outperforms 65.52% of its industry peers.
In the last couple of years the Profit Margin of CHX has grown nicely.
CHX has a better Operating Margin (13.92%) than 70.69% of its industry peers.
In the last couple of years the Operating Margin of CHX has remained more or less at the same level.
The Gross Margin of CHX (31.76%) is better than 62.07% of its industry peers.
In the last couple of years the Gross Margin of CHX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.92% | ||
| 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.
Compared to 5 years ago, CHX has more shares outstanding
CHX has a worse debt/assets ratio than last year.
2.2 Solvency
CHX has an Altman-Z score of 3.85. This indicates that CHX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CHX (3.85) is better than 86.21% of its industry peers.
The Debt to FCF ratio of CHX is 1.43, which is an excellent value as it means it would take CHX, only 1.43 years of fcf income to pay off 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 79.31% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that CHX is not too dependend on debt financing.
CHX's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. CHX outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.64
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.94 indicates that CHX should not have too much problems paying its short term obligations.
CHX's Current ratio of 1.94 is in line compared to the rest of the industry. CHX outperforms 53.45% of its industry peers.
A Quick Ratio of 1.20 indicates that CHX should not have too much problems paying its short term obligations.
CHX has a Quick ratio of 1.20. This is in the lower half of the industry: CHX underperforms 67.24% 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%.
Measured over the past years, CHX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.65% on average per year.
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 13.99% yearly.
The Revenue is expected to grow by 4.56% on average over the next years.
EPS Next Y6.83%
EPS Next 2Y11.04%
EPS Next 3Y11.89%
EPS Next 5Y13.99%
Revenue Next Year-1.61%
Revenue Next 2Y1.14%
Revenue Next 3Y3.19%
Revenue Next 5Y4.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 16.62.
Based on the Price/Earnings ratio, CHX is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CHX to the average of the S&P500 Index (28.28), we can say CHX is valued slightly cheaper.
CHX is valuated correctly with a Price/Forward Earnings ratio of 13.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CHX is on the same level as its industry peers.
CHX is valuated cheaply when we compare the Price/Forward Earnings ratio to 91.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CHX is valued a bit more expensive than 60.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CHX is valued a bit cheaper than the industry average as 63.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 7.71 |
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)2.43
PEG (5Y)1.43
EPS Next 2Y11.04%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
CHX has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.31, CHX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, CHX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
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 (1/29/2025, 8:13:12 PM)
After market: 29.13 +0.04 (+0.14%)29.09
-0.26 (-0.89%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.93%
Inst Owner Change0.63%
Ins Owners1.03%
Ins Owner Change0.22%
Market Cap5.54B
Analysts85.45
Price Target45.14 (55.17%)
Short Float %3.98%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend0.33
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)0%
PT rev (3m)-2.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.46%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 13.88 | ||
| P/S | 1.51 | ||
| P/FCF | 13.24 | ||
| P/OCF | 10.05 | ||
| P/B | 3.05 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)1.75
EY6.02%
EPS(NY)2.1
Fwd EY7.21%
FCF(TTM)2.2
FCFY7.56%
OCF(TTM)2.89
OCFY9.95%
SpS19.24
BVpS9.52
TBVpS4.27
PEG (NY)2.43
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 17.35% | ||
| ROCE | 19.34% | ||
| ROIC | 14.97% | ||
| ROICexc | 17.56% | ||
| ROICexgc | 31.63% | ||
| OM | 13.92% | ||
| 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 | 0.79 | ||
| Cap/Depr | 54.84% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.31% | ||
| Profit Quality | 133.04% | ||
| Current Ratio | 1.94 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.85 |
F-Score8
WACC9.11%
ROIC/WACC1.64
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 5Y13.99%
Revenue 1Y (TTM)-3.55%
Revenue growth 3Y25.53%
Revenue growth 5Y25.27%
Sales Q2Q%-3.54%
Revenue Next Year-1.61%
Revenue Next 2Y1.14%
Revenue Next 3Y3.19%
Revenue Next 5Y4.56%
EBIT growth 1Y2.6%
EBIT growth 3Y114.05%
EBIT growth 5Y26.6%
EBIT Next Year55.89%
EBIT Next 3Y20.72%
EBIT Next 5Y13.3%
FCF growth 1Y95.28%
FCF growth 3Y14.54%
FCF growth 5Y30.29%
OCF growth 1Y79.79%
OCF growth 3Y20.34%
OCF growth 5Y26.94%