ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
TSX:EFX - Toronto Stock Exchange - CA29269R1055 - Common Stock - Currency: CAD
EFX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 27 industry peers in the Energy Equipment & Services industry. EFX has a medium profitability rating, but doesn't score so well on its financial health evaluation. EFX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
EFX had positive earnings in the past year.
EFX had a positive operating cash flow in the past year.
In multiple years EFX reported negative net income over the last 5 years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX's Return On Assets of 2.68% is in line compared to the rest of the industry. EFX outperforms 44.44% of its industry peers.
With a Return On Equity value of 6.88%, EFX perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.39%, EFX is doing good in the industry, outperforming 70.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EFX is significantly below the industry average of 10.68%.
The last Return On Invested Capital (9.39%) for EFX is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROIC | 9.39% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.17%
ROIC(5y)3.83%
1.3 Margins
EFX has a Profit Margin of 3.18%. This is in the lower half of the industry: EFX underperforms 62.96% of its industry peers.
EFX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.27%, EFX is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
EFX's Operating Margin has declined in the last couple of years.
EFX has a Gross Margin of 23.41%. This is comparable to the rest of the industry: EFX outperforms 51.85% of its industry peers.
In the last couple of years the Gross Margin of EFX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 3.18% | ||
| GM | 23.41% |
OM growth 3Y8.72%
OM growth 5Y-8.35%
PM growth 3YN/A
PM growth 5Y-29.12%
GM growth 3Y-3.06%
GM growth 5Y-0.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EFX is still creating some value.
Compared to 1 year ago, EFX has about the same amount of shares outstanding.
The number of shares outstanding for EFX has been increased compared to 5 years ago.
EFX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a Altman-Z score of 1.58. This is comparable to the rest of the industry: EFX outperforms 51.85% of its industry peers.
The Debt to FCF ratio of EFX is 2.89, which is a good value as it means it would take EFX, 2.89 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.89, EFX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
EFX has a Debt/Equity ratio of 0.64. This is a neutral value indicating EFX is somewhat dependend on debt financing.
The Debt to Equity ratio of EFX (0.64) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.58 |
ROIC/WACC1.01
WACC9.29%
2.3 Liquidity
EFX has a Current Ratio of 1.12. This is a normal value and indicates that EFX is financially healthy and should not expect problems in meeting its short term obligations.
EFX has a Current ratio of 1.12. This is in the lower half of the industry: EFX underperforms 66.67% of its industry peers.
EFX has a Quick Ratio of 1.12. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EFX (0.83) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
EFX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.30%, which is quite impressive.
EFX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.76% yearly.
The Revenue has decreased by -8.76% in the past year.
EFX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.37% yearly.
EPS 1Y (TTM)151.3%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%226.78%
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%-35.81%
3.2 Future
The Earnings Per Share is expected to grow by 47.84% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.42% on average over the next years.
EPS Next Y219.88%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
EPS Next 5YN/A
Revenue Next Year-4.26%
Revenue Next 2Y-3.48%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
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 accelerating.
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
The Price/Earnings ratio is 13.15, which indicates a correct valuation of EFX.
EFX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.30. EFX is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.00, the valuation of EFX can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as EFX.
EFX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 9 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EFX is cheaper than 66.67% of the companies in the same industry.
EFX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EFX is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 3.81 |
4.3 Compensation for Growth
EFX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EFX's earnings are expected to grow with 47.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y85.94%
EPS Next 3Y47.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.36%, EFX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 17.40, EFX pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.36, EFX pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
The dividend of EFX decreases each year by -29.59%.
EFX has been paying a dividend for at least 10 years, so it has a reliable track record.
EFX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-29.59%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
17.57% of the earnings are spent on dividend by EFX. This is a low number and sustainable payout ratio.
DP17.57%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
TSX:EFX (7/11/2025, 7:00:00 PM)
10.65
-0.08 (-0.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.53%
Inst Owner ChangeN/A
Ins Owners0.32%
Ins Owner ChangeN/A
Market Cap1.32B
Analysts76.36
Price Target14.94 (40.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Yearly Dividend0.1
Dividend Growth(5Y)-29.59%
DP17.57%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)55.71%
Min EPS beat(2)52.69%
Max EPS beat(2)58.73%
EPS beat(4)3
Avg EPS beat(4)124.98%
Min EPS beat(4)-16.5%
Max EPS beat(4)404.99%
EPS beat(8)4
Avg EPS beat(8)-1192.21%
EPS beat(12)5
Avg EPS beat(12)-1605.47%
EPS beat(16)5
Avg EPS beat(16)-1258.7%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)-0.36%
Revenue beat(4)2
Avg Revenue beat(4)17.52%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)49.54%
Revenue beat(8)5
Avg Revenue beat(8)15.86%
Revenue beat(12)9
Avg Revenue beat(12)14.61%
Revenue beat(16)11
Avg Revenue beat(16)10.98%
PT rev (1m)1.86%
PT rev (3m)-2.99%
EPS NQ rev (1m)-10.32%
EPS NQ rev (3m)-1.79%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-8.89%
Revenue NQ rev (3m)-18.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 9 | ||
| P/S | 0.41 | ||
| P/FCF | 3.94 | ||
| P/OCF | 3.03 | ||
| P/B | 0.9 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 3.81 |
EPS(TTM)0.81
EY7.61%
EPS(NY)1.18
Fwd EY11.11%
FCF(TTM)2.7
FCFY25.36%
OCF(TTM)3.52
OCFY33.03%
SpS25.67
BVpS11.85
TBVpS6.8
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROCE | 13.05% | ||
| ROIC | 9.39% | ||
| ROICexc | 9.82% | ||
| ROICexgc | 13.3% | ||
| OM | 10.27% | ||
| PM (TTM) | 3.18% | ||
| GM | 23.41% | ||
| FCFM | 10.52% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.17%
ROIC(5y)3.83%
ROICexc(3y)4.42%
ROICexc(5y)4.1%
ROICexgc(3y)5.92%
ROICexgc(5y)5.75%
ROCE(3y)5.79%
ROCE(5y)5.33%
ROICexcg growth 3Y35.25%
ROICexcg growth 5Y-6.79%
ROICexc growth 3Y42.28%
ROICexc growth 5Y-4.91%
OM growth 3Y8.72%
OM growth 5Y-8.35%
PM growth 3YN/A
PM growth 5Y-29.12%
GM growth 3Y-3.06%
GM growth 5Y-0.1%
F-Score6
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 41.11% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 2.78 | ||
| Cash Conversion | 76.13% | ||
| Profit Quality | 331.08% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.58 |
F-Score6
WACC9.29%
ROIC/WACC1.01
Cap/Depr(3y)62.66%
Cap/Depr(5y)82.06%
Cap/Sales(3y)4.81%
Cap/Sales(5y)6.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)151.3%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%226.78%
EPS Next Y219.88%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.76%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%-35.81%
Revenue Next Year-4.26%
Revenue Next 2Y-3.48%
Revenue Next 3Y-2.03%
Revenue Next 5Y-0.42%
EBIT growth 1Y57.38%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y22.75%
FCF growth 1Y282.92%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y698.92%
OCF growth 3Y29.63%
OCF growth 5Y42.99%