ENERFLEX LTD (EFX.CA) Stock Fundamental Analysis
Canada - TSX:EFX - CA29269R1055 - Common Stock
15.08 CAD
-0.99 (-6.16%)
Overall EFX gets a fundamental rating of 4 out of 10. We evaluated EFX against 28 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EFX was profitable.
EFX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EFX reported negative net income in multiple years.
Each year in the past 5 years EFX had a positive operating cash flow.
1.2 Ratios
EFX has a Return On Assets (4.47%) which is in line with its industry peers.
EFX has a better Return On Equity (11.45%) than 60.71% of its industry peers.
With a decent Return On Invested Capital value of 9.60%, EFX is doing good in the industry, outperforming 71.43% of the companies in the same industry.
EFX had an Average Return On Invested Capital over the past 3 years of 4.17%. This is significantly below the industry average of 11.19%.
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
Looking at the Profit Margin, with a value of 5.54%, EFX is in line with its industry, outperforming 53.57% of the companies in the same industry.
EFX's Profit Margin has declined in the last couple of years.
EFX has a Operating Margin of 10.99%. This is in the better half of the industry: EFX outperforms 75.00% of its industry peers.
EFX's Operating Margin has declined in the last couple of years.
EFX has a Gross Margin of 23.53%. This is comparable to the rest of the industry: EFX outperforms 53.57% 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 | 10.99% | ||
| 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.
The number of shares outstanding for EFX has been increased compared to 5 years ago.
Compared to 1 year ago, EFX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that EFX is in the distress zone and has some risk of bankruptcy.
EFX has a Altman-Z score (1.70) which is in line with its industry peers.
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.
The Debt to FCF ratio of EFX (3.66) is better than 60.71% 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.
With a Debt to Equity ratio value of 0.65, EFX is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.12
WACC8.58%
2.3 Liquidity
A Current Ratio of 1.19 indicates that EFX should not have too much problems paying 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 64.29% 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 worse Quick ratio (0.88) than 64.29% of its industry peers.
| 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 195.42% over the past year.
Measured over the past years, EFX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.76% on average per year.
Looking at the last year, EFX shows a decrease in Revenue. The Revenue has decreased by -2.51% in the last year.
The Revenue has been growing slightly by 3.37% on average over the past years.
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.
The Revenue is expected to decrease by -0.41% on average over the next years.
EPS Next Y351.68%
EPS Next 2Y88.17%
EPS Next 3Y67.81%
EPS Next 5YN/A
Revenue Next Year-2.78%
Revenue Next 2Y-2.07%
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.
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
With a Price/Earnings ratio of 10.33, the valuation of EFX can be described as very reasonable.
Based on the Price/Earnings ratio, EFX is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.34, EFX is valued rather cheaply.
EFX is valuated correctly with a Price/Forward Earnings ratio of 12.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EFX is on the same level as its industry peers.
EFX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 12.16 |
4.2 Price Multiples
EFX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, EFX is valued a bit cheaper than 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.39 | ||
| EV/EBITDA | 4.63 |
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 67.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y88.17%
EPS Next 3Y67.81%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, EFX is not a good candidate for dividend investing.
EFX's Dividend Yield is a higher than the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.44, EFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of EFX decreases each year by -29.59%.
EFX has paid a dividend for at least 10 years, which is 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 2Y88.17%
EPS Next 3Y67.81%
TSX:EFX (10/10/2025, 7:00:00 PM)
15.08
-0.99 (-6.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners71.08%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner ChangeN/A
Market Cap1.84B
Analysts76.36
Price Target17.72 (17.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)0%
PT rev (3m)18.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)61.54%
EPS NY rev (1m)13.73%
EPS NY rev (3m)41.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 12.16 | ||
| P/S | 0.56 | ||
| P/FCF | 6.39 | ||
| P/OCF | 4.34 | ||
| P/B | 1.17 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)1.46
EY9.68%
EPS(NY)1.24
Fwd EY8.23%
FCF(TTM)2.36
FCFY15.66%
OCF(TTM)3.47
OCFY23.03%
SpS26.69
BVpS12.92
TBVpS7.63
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 | 1.7 |
F-Score7
WACC8.58%
ROIC/WACC1.12
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 Y351.68%
EPS Next 2Y88.17%
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-2.78%
Revenue Next 2Y-2.07%
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 Year183.76%
EBIT Next 3Y42.67%
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%