ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
TSX:EFX - Toronto Stock Exchange - CA29269R1055 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to EFX. EFX was compared to 28 industry peers in the Energy Equipment & Services industry. Both the profitability and financial health of EFX have multiple concerns. EFX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
EFX had a positive operating cash flow in the past year.
In the past 5 years EFX reported 4 times negative net income.
Of the past 5 years EFX 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of EFX (-2.59%) is worse than 82.14% of its industry peers.
EFX's Return On Equity of -7.17% is on the low side compared to the rest of the industry. EFX is outperformed by 78.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.31%, EFX is doing worse than 60.71% 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 10.77%.
The 3 year average ROIC (2.57%) for EFX is below the current ROIC(7.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.59% | ||
| ROE | -7.17% | ||
| ROIC | 7.31% |
ROA(3y)-1.96%
ROA(5y)0.9%
ROE(3y)-5.14%
ROE(5y)0.44%
ROIC(3y)2.57%
ROIC(5y)4.19%
1.3 Margins
EFX has a Operating Margin of 8.31%. This is in the lower half of the industry: EFX underperforms 60.71% of its industry peers.
In the last couple of years the Operating Margin of EFX has declined.
EFX has a Gross Margin (19.99%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of EFX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.31% | ||
| PM (TTM) | N/A | ||
| GM | 19.99% |
OM growth 3Y-10.18%
OM growth 5Y-3.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.47%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EFX is destroying value.
There is no outstanding debt for EFX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that EFX is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.46, EFX is doing worse than 60.71% of the companies in the same industry.
EFX has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as EFX would need 2.84 years to pay back of all of its debts.
EFX's Debt to FCF ratio of 2.84 is fine compared to the rest of the industry. EFX outperforms 71.43% of its industry peers.
EFX has a Debt/Equity ratio of 0.79. This is a neutral value indicating EFX is somewhat dependend on debt financing.
EFX has a worse Debt to Equity ratio (0.79) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.98
WACC7.43%
2.3 Liquidity
EFX has a Current Ratio of 1.19. This is a normal value and indicates that EFX is financially healthy and should not expect problems in meeting its short term obligations.
EFX's Current ratio of 1.19 is on the low side compared to the rest of the industry. EFX is outperformed by 67.86% of its industry peers.
EFX has a Quick Ratio of 1.19. This is a bad value and indicates that EFX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.88, EFX is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 128.10% over the past year.
EFX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -31.76% yearly.
EPS 1Y (TTM)128.1%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%111.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-28.28%
3.2 Future
Based on estimates for the next years, EFX will show a very strong growth in Earnings Per Share. The EPS will grow by 40.84% on average per year.
Based on estimates for the next years, EFX will show a decrease in Revenue. The Revenue will decrease by -2.88% on average per year.
EPS Next Y148.6%
EPS Next 2Y40.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year0%
Revenue Next 2Y-0.38%
Revenue Next 3Y-2.19%
Revenue Next 5Y-2.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EFX is valuated quite expensively with a Price/Earnings ratio of 30.42.
Based on the Price/Earnings ratio, EFX is valued a bit more expensive than 67.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. EFX is around the same levels.
A Price/Forward Earnings ratio of 12.20 indicates a correct valuation of EFX.
The rest of the industry has a similar Price/Forward Earnings ratio as EFX.
EFX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 12.2 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, EFX is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.12 | ||
| EV/EBITDA | 4.34 |
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.
EFX's earnings are expected to grow with 40.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y40.84%
EPS Next 3YN/A
5. Dividend
5.1 Amount
EFX has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
EFX's Dividend Yield is a higher than the industry average which is at 13.63.
Compared to an average S&P500 Dividend Yield of 2.30, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of EFX decreases each year by -28.40%.
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)-28.4%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
The earnings of EFX are negative and hence is the payout ratio. EFX will probably not be able to sustain this dividend level.
DP-12.21%
EPS Next 2Y40.84%
EPS Next 3YN/A
TSX:EFX (3/3/2025, 7:00:00 PM)
10.95
-0.58 (-5.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners68.51%
Inst Owner ChangeN/A
Ins Owners0.73%
Ins Owner ChangeN/A
Market Cap1.36B
Analysts76.67
Price Target15.68 (43.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend0.1
Dividend Growth(5Y)-28.4%
DP-12.21%
Div Incr Years1
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)194.25%
Min EPS beat(2)-16.5%
Max EPS beat(2)404.99%
EPS beat(4)1
Avg EPS beat(4)-2514.29%
Min EPS beat(4)-10098%
Max EPS beat(4)404.99%
EPS beat(8)2
Avg EPS beat(8)-2346.16%
EPS beat(12)3
Avg EPS beat(12)-1683.08%
EPS beat(16)4
Avg EPS beat(16)-1255.87%
Revenue beat(2)2
Avg Revenue beat(2)39.23%
Min Revenue beat(2)28.93%
Max Revenue beat(2)49.54%
Revenue beat(4)3
Avg Revenue beat(4)33.06%
Min Revenue beat(4)-1.5%
Max Revenue beat(4)55.28%
Revenue beat(8)7
Avg Revenue beat(8)20.74%
Revenue beat(12)11
Avg Revenue beat(12)16.73%
Revenue beat(16)12
Avg Revenue beat(16)11.96%
PT rev (1m)3.36%
PT rev (3m)21.48%
EPS NQ rev (1m)18.49%
EPS NQ rev (3m)-17.82%
EPS NY rev (1m)0%
EPS NY rev (3m)11.73%
Revenue NQ rev (1m)26.46%
Revenue NQ rev (3m)2.49%
Revenue NY rev (1m)12.95%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.42 | ||
| Fwd PE | 12.2 | ||
| P/S | 0.39 | ||
| P/FCF | 3.12 | ||
| P/OCF | 2.59 | ||
| P/B | 0.89 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 4.34 |
EPS(TTM)0.36
EY3.29%
EPS(NY)0.9
Fwd EY8.19%
FCF(TTM)3.51
FCFY32.07%
OCF(TTM)4.22
OCFY38.56%
SpS28.17
BVpS12.29
TBVpS6.79
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.59% | ||
| ROE | -7.17% | ||
| ROCE | 10.16% | ||
| ROIC | 7.31% | ||
| ROICexc | 7.68% | ||
| ROICexgc | 10.25% | ||
| OM | 8.31% | ||
| PM (TTM) | N/A | ||
| GM | 19.99% | ||
| FCFM | 12.46% |
ROA(3y)-1.96%
ROA(5y)0.9%
ROE(3y)-5.14%
ROE(5y)0.44%
ROIC(3y)2.57%
ROIC(5y)4.19%
ROICexc(3y)2.82%
ROICexc(5y)4.47%
ROICexgc(3y)3.95%
ROICexgc(5y)6.51%
ROCE(3y)3.58%
ROCE(5y)5.82%
ROICexcg growth 3Y3.39%
ROICexcg growth 5Y-8.78%
ROICexc growth 3Y7.35%
ROICexc growth 5Y-3.72%
OM growth 3Y-10.18%
OM growth 5Y-3.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.47%
GM growth 5Y1.6%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 2.13 | ||
| Cap/Depr | 32.02% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.51% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 1.46 |
F-Score5
WACC7.43%
ROIC/WACC0.98
Cap/Depr(3y)69.73%
Cap/Depr(5y)134.04%
Cap/Sales(3y)5.67%
Cap/Sales(5y)8.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)128.1%
EPS 3YN/A
EPS 5Y-31.76%
EPS Q2Q%111.65%
EPS Next Y148.6%
EPS Next 2Y40.84%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-28.28%
Revenue Next Year0%
Revenue Next 2Y-0.38%
Revenue Next 3Y-2.19%
Revenue Next 5Y-2.88%
EBIT growth 1Y195.76%
EBIT growth 3Y10.39%
EBIT growth 5Y1.93%
EBIT Next Year157.72%
EBIT Next 3Y40.91%
EBIT Next 5Y22.49%
FCF growth 1Y216.23%
FCF growth 3Y2.53%
FCF growth 5Y-3.4%
OCF growth 1Y127.22%
OCF growth 3Y-3.92%
OCF growth 5Y-4.27%