ENERFLEX LTD (EFXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFXT - CA29269R1055 - Common Stock
17.47 USD
+0.53 (+3.13%)
17.47 USD
0 (0%)
Taking everything into account, EFXT scores 5 out of 10 in our fundamental rating. EFXT was compared to 61 industry peers in the Energy Equipment & Services industry. EFXT has a medium profitability rating, but doesn't score so well on its financial health evaluation. EFXT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- EFXT had positive earnings in the past year.
- EFXT had a positive operating cash flow in the past year.
- In multiple years EFXT reported negative net income over the last 5 years.
- Each year in the past 5 years EFXT had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 4.76%, EFXT is doing good in the industry, outperforming 67.21% of the companies in the same industry.
- EFXT has a Return On Equity of 11.77%. This is in the better half of the industry: EFXT outperforms 73.77% of its industry peers.
- EFXT has a better Return On Invested Capital (12.10%) than 93.44% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EFXT is significantly below the industry average of 12.90%.
- The last Return On Invested Capital (12.10%) for EFXT is above the 3 year average (4.57%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.76% | ||
| ROE | 11.77% | ||
| ROIC | 12.1% |
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 Profit Margin (5.43%) which is in line with its industry peers.
- EFXT's Profit Margin has declined in the last couple of years.
- EFXT has a better Operating Margin (11.90%) than 63.93% of its industry peers.
- In the last couple of years the Operating Margin of EFXT has declined.
- EFXT has a Gross Margin of 23.11%. This is comparable to the rest of the industry: EFXT outperforms 45.90% of its industry peers.
- In the last couple of years the Gross Margin of EFXT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.9% | ||
| PM (TTM) | 5.43% | ||
| GM | 23.11% |
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.
- EFXT has about the same amout of shares outstanding than it did 1 year ago.
- EFXT has more shares outstanding than it did 5 years ago.
- EFXT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.14 indicates that EFXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.14, EFXT is in line with its industry, outperforming 55.74% of the companies in the same industry.
- The Debt to FCF ratio of EFXT is 4.37, which is a neutral value as it means it would take EFXT, 4.37 years of fcf income to pay off all of its debts.
- EFXT's Debt to FCF ratio of 4.37 is in line compared to the rest of the industry. EFXT outperforms 50.82% of its industry peers.
- EFXT has a Debt/Equity ratio of 0.61. This is a neutral value indicating EFXT is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.61, EFXT is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.36
WACC8.91%
2.3 Liquidity
- EFXT has a Current Ratio of 1.24. This is a normal value and indicates that EFXT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.24, EFXT is not doing good in the industry: 80.33% of the companies in the same industry are doing better.
- A Quick Ratio of 0.88 indicates that EFXT may have some problems paying its short term obligations.
- EFXT has a Quick ratio of 0.88. This is amonst the worse of the industry: EFXT underperforms 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- EFXT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 275.55%, which is quite impressive.
- EFXT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -27.80% yearly.
- The Revenue has been growing slightly by 3.39% 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)275.55%
EPS 3YN/A
EPS 5Y-27.8%
EPS Q2Q%25.15%
Revenue 1Y (TTM)3.39%
Revenue growth 3Y52.1%
Revenue growth 5Y3.37%
Sales Q2Q%29.28%
3.2 Future
- Based on estimates for the next years, EFXT will show a very strong growth in Earnings Per Share. The EPS will grow by 68.17% on average per year.
- Based on estimates for the next years, EFXT will show a small growth in Revenue. The Revenue will grow by 1.26% on average per year.
EPS Next Y355.58%
EPS Next 2Y114.11%
EPS Next 3Y68.17%
EPS Next 5YN/A
Revenue Next Year2.45%
Revenue Next 2Y0.44%
Revenue Next 3Y1.05%
Revenue Next 5Y1.26%
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 15.88, the valuation of EFXT can be described as correct.
- Based on the Price/Earnings ratio, EFXT is valued cheaper than 83.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, EFXT is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.24, EFXT is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EFXT indicates a rather cheap valuation: EFXT is cheaper than 85.25% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, EFXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
- 78.69% 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 somewhat cheap valuation: EFXT is cheaper than 78.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 5.86 |
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 68.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y114.11%
EPS Next 3Y68.17%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.74%, EFXT is not a good candidate for dividend investing.
- EFXT's Dividend Yield is a higher than the industry average which is at 1.14.
- Compared to an average S&P500 Dividend Yield of 1.82, EFXT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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
- EFXT pays out 11.03% of its income as dividend. This is a sustainable payout ratio.
DP11.03%
EPS Next 2Y114.11%
EPS Next 3Y68.17%
ENERFLEX LTD / EFXT FAQ
Can you provide the ChartMill fundamental rating for ENERFLEX LTD?
ChartMill assigns a fundamental rating of 5 / 10 to EFXT.
What is the valuation status for EFXT stock?
ChartMill assigns a valuation rating of 7 / 10 to ENERFLEX LTD (EFXT). This can be considered as Undervalued.
Can you provide the profitability details for ENERFLEX LTD?
ENERFLEX LTD (EFXT) has a profitability rating of 5 / 10.
What is the valuation of ENERFLEX LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ENERFLEX LTD (EFXT) is 15.88 and the Price/Book (PB) ratio is 1.84.
How sustainable is the dividend of ENERFLEX LTD (EFXT) stock?
The dividend rating of ENERFLEX LTD (EFXT) is 4 / 10 and the dividend payout ratio is 11.03%.