ENERFLEX LTD (EFXT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EFXT - CA29269R1055 - Common Stock
17.47 USD
+0.53 (+3.13%)
17.55 USD
+0.08 (+0.46%)
We assign a fundamental rating of 5 out of 10 to EFXT. 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.
- The reported net income has been mixed in the past 5 years: EFXT reported negative net income in multiple years.
- EFXT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- EFXT has a Return On Assets of 4.76%. This is in the better half of the industry: EFXT outperforms 67.21% of its industry peers.
- Looking at the Return On Equity, with a value of 11.77%, EFXT is in the better half of the industry, outperforming 73.77% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 12.10%, EFXT belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for EFXT is significantly below the industry average of 12.90%.
- The 3 year average ROIC (4.57%) for EFXT is below the current ROIC(12.10%), indicating increased profibility in the last year.
| 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.
- Looking at the Gross Margin, with a value of 23.11%, EFXT is in line with its industry, outperforming 45.90% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), EFXT is creating some value.
- Compared to 1 year ago, EFXT has about the same amount of shares outstanding.
- The number of shares outstanding for EFXT has been increased compared to 5 years ago.
- EFXT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.16 indicates that EFXT is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EFXT's Altman-Z score of 2.16 is in line compared to the rest of the industry. EFXT outperforms 55.74% of its industry peers.
- EFXT has a debt to FCF ratio of 4.37. This is a neutral value as EFXT would need 4.37 years to pay back of all of its debts.
- The Debt to FCF ratio of EFXT (4.37) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.61 indicates that EFXT is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, EFXT is doing worse than 60.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 2.16 |
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.
- Looking at the Current ratio, with a value of 1.24, EFXT is doing worse than 80.33% of the companies in the same industry.
- A Quick Ratio of 0.88 indicates that EFXT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.88, EFXT is not doing good in the industry: 83.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 275.55% over the past year.
- Measured over the past years, EFXT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -27.80% on average per year.
- EFXT shows a small growth in Revenue. In the last year, the Revenue has grown by 3.39%.
- 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
- The Earnings Per Share is expected to grow by 68.17% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 1.26% on average over the next years.
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.
- 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
- The Price/Earnings ratio is 15.88, which indicates a correct valuation of EFXT.
- 83.61% of the companies in the same industry are more expensive than EFXT, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.82. EFXT is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.24, EFXT is valued correctly.
- Based on the Price/Forward Earnings ratio, EFXT is valued cheaper than 83.61% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, EFXT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.88 | ||
| Fwd PE | 15.24 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EFXT indicates a somewhat cheap valuation: EFXT is cheaper than 77.05% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EFXT indicates a somewhat cheap valuation: EFXT is cheaper than 77.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
- EFXT's 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 EFXT's earnings are expected to grow with 68.17% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y114.11%
EPS Next 3Y68.17%
5. Dividend
5.1 Amount
- EFXT has a yearly dividend return of 0.74%, which is pretty low.
- EFXT's Dividend Yield is a higher than the industry average which is at 1.14.
- With a Dividend Yield of 0.74, EFXT pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
- The dividend of EFXT decreases each year by -29.59%.
- EFXT has paid a dividend for at least 10 years, which is 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%.