ENERFLEX LTD (EFXT) Stock Fundamental Analysis
NYSE:EFXT - New York Stock Exchange, Inc. - CA29269R1055 - Common Stock - Currency: USD
EFXT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. While EFXT is still in line with the averages on profitability rating, there are concerns on its financial health. EFXT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year EFXT was profitable.
EFXT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: EFXT reported negative net income in multiple years.
In the past 5 years EFXT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of EFXT (2.68%) is comparable to the rest of the industry.
The Return On Equity of EFXT (6.88%) is comparable to the rest of the industry.
EFXT's Return On Invested Capital of 10.31% is fine compared to the rest of the industry. EFXT outperforms 77.78% of its industry peers.
EFXT had an Average Return On Invested Capital over the past 3 years of 4.57%. This is below the industry average of 8.44%.
The last Return On Invested Capital (10.31%) for EFXT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROIC | 10.31% |
ROA(3y)-1.34%
ROA(5y)-0.17%
ROE(3y)-3.79%
ROE(5y)-1.28%
ROIC(3y)4.57%
ROIC(5y)4.21%
1.3 Margins
EFXT has a worse Profit Margin (3.18%) than 66.67% of its industry peers.
EFXT's Profit Margin has declined in the last couple of years.
The Operating Margin of EFXT (10.27%) is comparable to the rest of the industry.
EFXT's Operating Margin has declined in the last couple of years.
EFXT has a Gross Margin (23.41%) which is comparable to the rest of the industry.
EFXT's Gross Margin has been stable in the last couple of years.
| 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 EFXT is still creating some value.
Compared to 1 year ago, EFXT has about the same amount of shares outstanding.
Compared to 5 years ago, EFXT has more shares outstanding
Compared to 1 year ago, EFXT has an improved debt to assets ratio.
2.2 Solvency
EFXT has an Altman-Z score of 1.59. This is a bad value and indicates that EFXT is not financially healthy and even has some risk of bankruptcy.
EFXT's Altman-Z score of 1.59 is on the low side compared to the rest of the industry. EFXT is outperformed by 60.32% of its industry peers.
The Debt to FCF ratio of EFXT is 2.89, which is a good value as it means it would take EFXT, 2.89 years of fcf income to pay off all of its debts.
EFXT has a Debt to FCF ratio of 2.89. This is in the better half of the industry: EFXT outperforms 65.08% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that EFXT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.64, EFXT is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.89 | ||
| Altman-Z | 1.59 |
ROIC/WACC1.22
WACC8.47%
2.3 Liquidity
EFXT has a Current Ratio of 1.12. This is a normal value and indicates that EFXT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.12, EFXT is doing worse than 88.89% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that EFXT may have some problems paying its short term obligations.
EFXT has a worse Quick ratio (0.83) than 87.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
EFXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 151.30%, which is quite impressive.
Measured over the past years, EFXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -31.76% on average per year.
The Revenue has decreased by -8.76% in the past year.
EFXT 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
EFXT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.84% yearly.
Based on estimates for the next years, EFXT will show a decrease in Revenue. The Revenue will decrease by -0.42% on average per year.
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
Based on the Price/Earnings ratio of 13.75, the valuation of EFXT can be described as correct.
Based on the Price/Earnings ratio, EFXT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
EFXT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
With a Price/Forward Earnings ratio of 9.38, the valuation of EFXT can be described as very reasonable.
EFXT's Price/Forward Earnings ratio is rather cheap when compared to the industry. EFXT is cheaper than 84.13% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, EFXT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 9.38 |
4.2 Price Multiples
79.37% of the companies in the same industry are more expensive than EFXT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFXT indicates a rather cheap valuation: EFXT is cheaper than 93.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.11 | ||
| EV/EBITDA | 3.87 |
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.
EFXT'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 1.38%, EFXT has a reasonable but not impressive dividend return.
EFXT's Dividend Yield is a higher than the industry average which is at 3.70.
Compared to an average S&P500 Dividend Yield of 2.42, EFXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
5.2 History
The dividend of EFXT decreases each year by -29.59%.
EFXT has been paying a dividend for at least 10 years, so it has a reliable track record.
EFXT 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 EFXT. This is a low number and sustainable payout ratio.
DP17.57%
EPS Next 2Y85.94%
EPS Next 3Y47.84%
8.11
+0.07 (+0.87%)
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 Cap1.01B
Analysts76.36
Price Target10.89 (34.28%)
Short Float %1.3%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Yearly Dividend0.07
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)44.99%
Min EPS beat(2)31.25%
Max EPS beat(2)58.73%
EPS beat(4)3
Avg EPS beat(4)119.62%
Min EPS beat(4)-16.5%
Max EPS beat(4)404.99%
EPS beat(8)4
Avg EPS beat(8)-1194.9%
EPS beat(12)5
Avg EPS beat(12)-1607.25%
EPS beat(16)5
Avg EPS beat(16)-1260.04%
Revenue beat(2)0
Avg Revenue beat(2)-6.59%
Min Revenue beat(2)-8.01%
Max Revenue beat(2)-5.17%
Revenue beat(4)2
Avg Revenue beat(4)16.32%
Min Revenue beat(4)-8.01%
Max Revenue beat(4)49.54%
Revenue beat(8)5
Avg Revenue beat(8)15.26%
Revenue beat(12)9
Avg Revenue beat(12)14.2%
Revenue beat(16)11
Avg Revenue beat(16)10.68%
PT rev (1m)2.66%
PT rev (3m)0.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 9.38 | ||
| P/S | 0.43 | ||
| P/FCF | 4.11 | ||
| P/OCF | 3.16 | ||
| P/B | 0.94 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 3.87 |
EPS(TTM)0.59
EY7.27%
EPS(NY)0.86
Fwd EY10.66%
FCF(TTM)1.97
FCFY24.33%
OCF(TTM)2.57
OCFY31.68%
SpS18.75
BVpS8.66
TBVpS4.97
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 6.88% | ||
| ROCE | 13.05% | ||
| ROIC | 10.31% | ||
| ROICexc | 10.78% | ||
| ROICexgc | 14.59% | ||
| 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)4.57%
ROIC(5y)4.21%
ROICexc(3y)4.85%
ROICexc(5y)4.5%
ROICexgc(3y)6.5%
ROICexgc(5y)6.31%
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 | 1.59 |
F-Score6
WACC8.47%
ROIC/WACC1.22
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%