ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
Canada - TSX:EFX - CA29269R1055 - Common Stock
14.64 CAD
+0.12 (+0.83%)
We assign a fundamental rating of 4 out of 10 to EFX. EFX was compared to 26 industry peers in the Energy Equipment & Services industry. While EFX is still in line with the averages on profitability rating, there are concerns on its financial health. EFX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EFX had positive earnings in the past year.
In the past year EFX had a positive cash flow from operations.
In multiple years EFX reported negative net income over the last 5 years.
EFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.47%, EFX perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
EFX has a Return On Equity (11.45%) which is in line with its industry peers.
EFX has a better Return On Invested Capital (9.60%) than 69.23% of its industry peers.
EFX had an Average Return On Invested Capital over the past 3 years of 4.17%. This is significantly below the industry average of 11.40%.
The last Return On Invested Capital (9.60%) for EFX is above the 3 year average (4.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROIC | 9.6% |
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's Profit Margin of 5.54% is in line compared to the rest of the industry. EFX outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of EFX has declined.
EFX's Operating Margin of 10.99% is fine compared to the rest of the industry. EFX outperforms 73.08% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
The Gross Margin of EFX (23.53%) is comparable to the rest of the industry.
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 | 10.99% | ||
| PM (TTM) | 5.54% | ||
| GM | 23.53% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFX is creating some value.
The number of shares outstanding for EFX remains at a similar level compared to 1 year ago.
EFX has more shares outstanding than it did 5 years ago.
EFX has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a Altman-Z score (1.69) which is comparable to the rest of the industry.
The Debt to FCF ratio of EFX is 3.66, which is a good value as it means it would take EFX, 3.66 years of fcf income to pay off all of its debts.
EFX has a Debt to FCF ratio of 3.66. This is comparable to the rest of the industry: EFX outperforms 57.69% of its industry peers.
EFX has a Debt/Equity ratio of 0.65. This is a neutral value indicating EFX is somewhat dependend on debt financing.
EFX has a worse Debt to Equity ratio (0.65) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.69 |
ROIC/WACC1.06
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EFX should not have too much problems paying its short term obligations.
EFX has a worse Current ratio (1.19) than 69.23% of its industry peers.
A Quick Ratio of 0.88 indicates that EFX may have some problems paying its short term obligations.
EFX has a Quick ratio of 0.88. This is in the lower half of the industry: EFX underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
EFX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 195.42%, 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 -2.51% 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)195.42%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%1118.6%
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%0.16%
3.2 Future
EFX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 67.81% yearly.
EFX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.41% yearly.
EPS Next Y297.15%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
EPS Next 5YN/A
Revenue Next Year-3.7%
Revenue Next 2Y-2.42%
Revenue Next 3Y-1.41%
Revenue Next 5Y-0.41%
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
With a Price/Earnings ratio of 10.17, the valuation of EFX can be described as very reasonable.
61.54% of the companies in the same industry are more expensive than EFX, based on the Price/Earnings ratio.
EFX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 12.09, which indicates a correct valuation of EFX.
EFX's Price/Forward Earnings is on the same level as the industry average.
EFX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EFX is on the same level as its industry peers.
65.38% of the companies in the same industry are more expensive than EFX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 4.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EFX's earnings are expected to grow with 67.81% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y86.73%
EPS Next 3Y67.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, EFX has a reasonable but not impressive dividend return.
EFX's Dividend Yield is a higher than the industry average which is at 3.25.
With a Dividend Yield of 1.03, EFX pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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
EFX pays out 10.85% of its income as dividend. This is a sustainable payout ratio.
DP10.85%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
TSX:EFX (9/12/2025, 7:00:00 PM)
14.64
+0.12 (+0.83%)
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 Cap1.79B
Analysts76.36
Price Target17.72 (21.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend0.1
Dividend Growth(5Y)-29.59%
DP10.85%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)149.61%
Min EPS beat(2)52.69%
Max EPS beat(2)246.54%
EPS beat(4)4
Avg EPS beat(4)190.74%
Min EPS beat(4)52.69%
Max EPS beat(4)404.99%
EPS beat(8)5
Avg EPS beat(8)-1147.55%
EPS beat(12)5
Avg EPS beat(12)-1587.84%
EPS beat(16)6
Avg EPS beat(16)-1242.06%
Revenue beat(2)1
Avg Revenue beat(2)3.85%
Min Revenue beat(2)-0.36%
Max Revenue beat(2)8.05%
Revenue beat(4)2
Avg Revenue beat(4)7.15%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)28.93%
Revenue beat(8)5
Avg Revenue beat(8)16.63%
Revenue beat(12)9
Avg Revenue beat(12)13.89%
Revenue beat(16)12
Avg Revenue beat(16)12.05%
PT rev (1m)18.66%
PT rev (3m)23.56%
EPS NQ rev (1m)61.54%
EPS NQ rev (3m)145.3%
EPS NY rev (1m)24.16%
EPS NY rev (3m)24.16%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)2.75%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 12.09 | ||
| P/S | 0.55 | ||
| P/FCF | 6.26 | ||
| P/OCF | 4.25 | ||
| P/B | 1.14 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 4.55 |
EPS(TTM)1.44
EY9.84%
EPS(NY)1.21
Fwd EY8.27%
FCF(TTM)2.34
FCFY15.98%
OCF(TTM)3.44
OCFY23.5%
SpS26.45
BVpS12.8
TBVpS7.56
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.47% | ||
| ROE | 11.45% | ||
| ROCE | 13.33% | ||
| ROIC | 9.6% | ||
| ROICexc | 9.98% | ||
| ROICexgc | 13.31% | ||
| OM | 10.99% | ||
| PM (TTM) | 5.54% | ||
| GM | 23.53% | ||
| FCFM | 8.85% |
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-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 55.75% | ||
| Cap/Sales | 4.16% | ||
| Interest Coverage | 3.24 | ||
| Cash Conversion | 70.47% | ||
| Profit Quality | 159.69% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.69 |
F-Score7
WACC9.08%
ROIC/WACC1.06
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)195.42%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%1118.6%
EPS Next Y297.15%
EPS Next 2Y86.73%
EPS Next 3Y67.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.51%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%0.16%
Revenue Next Year-3.7%
Revenue Next 2Y-2.42%
Revenue Next 3Y-1.41%
Revenue Next 5Y-0.41%
EBIT growth 1Y54.85%
EBIT growth 3Y65.36%
EBIT growth 5Y-5.26%
EBIT Next Year165.41%
EBIT Next 3Y39.97%
EBIT Next 5Y22.49%
FCF growth 1Y216.29%
FCF growth 3Y31.84%
FCF growth 5YN/A
OCF growth 1Y1940.68%
OCF growth 3Y29.63%
OCF growth 5Y42.99%