TSX:EFX

Stock Analysis Report

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Market Cap

CA$642.1m

Last Updated

2021/08/03 23:48 UTC

Data Sources

Company Financials +

Executive Summary

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment to the oil and natural gas industry. More Details


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Enerflex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EFX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: EFX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

EFX

-0.5%

CA Energy Services

1.4%

CA Market


1 Year Return

41.8%

EFX

71.0%

CA Energy Services

28.0%

CA Market

Return vs Industry: EFX underperformed the Canadian Energy Services industry which returned 74.6% over the past year.

Return vs Market: EFX exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

EFXIndustryMarket
7 Day-2.6%-0.5%1.4%
30 Day-14.7%-9.2%-0.2%
90 Day-15.8%1.0%2.8%
1 Year43.3%41.8%72.8%71.0%31.8%28.0%
3 Year-48.7%-52.5%-51.1%-55.1%33.0%20.1%
5 Year-38.7%-45.7%-62.7%-66.2%50.7%28.5%

Long-Term Price Volatility Vs. Market

How volatile is Enerflex's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Enerflex undervalued compared to its fair value and its price relative to the market?

39.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EFX (CA$7.16) is trading below our estimate of fair value (CA$11.77)

Significantly Below Fair Value: EFX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EFX is good value based on its PE Ratio (11.9x) compared to the Canadian Energy Services industry average (12.3x).

PE vs Market: EFX is good value based on its PE Ratio (11.9x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: EFX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: EFX is good value based on its PB Ratio (0.5x) compared to the CA Energy Services industry average (0.7x).


Future Growth

How is Enerflex forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

18.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EFX's forecast earnings growth (18.7% per year) is above the savings rate (1.5%).

Earnings vs Market: EFX's earnings (18.7% per year) are forecast to grow faster than the Canadian market (13.8% per year).

High Growth Earnings: EFX's earnings are forecast to grow, but not significantly.

Revenue vs Market: EFX's revenue (11.4% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: EFX's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EFX's Return on Equity is forecast to be low in 3 years time (5.4%).


Past Performance

How has Enerflex performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EFX has high quality earnings.

Growing Profit Margin: EFX's current net profit margins (5.1%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: EFX has become profitable over the past 5 years, growing earnings by 45.9% per year.

Accelerating Growth: EFX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EFX had negative earnings growth (-68.7%) over the past year, making it difficult to compare to the Energy Services industry average (5%).


Return on Equity

High ROE: EFX's Return on Equity (3.9%) is considered low.


Financial Health

How is Enerflex's financial position?


Financial Position Analysis

Short Term Liabilities: EFX's short term assets (CA$589.1M) exceed its short term liabilities (CA$269.4M).

Long Term Liabilities: EFX's short term assets (CA$589.1M) exceed its long term liabilities (CA$464.8M).


Debt to Equity History and Analysis

Debt Level: EFX's debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: EFX's debt to equity ratio has reduced from 53.2% to 26.3% over the past 5 years.

Debt Coverage: EFX's debt is well covered by operating cash flow (74.8%).

Interest Coverage: EFX's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

What is Enerflex current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EFX's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: EFX's dividend (1.12%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


Stability and Growth of Payments

Stable Dividend: EFX's dividend payments have been volatile in the past 10 years.

Growing Dividend: EFX's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), EFX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Marc Rossiter (49 yo)

2.25yrs

Tenure

CA$4,761,234

Compensation

Mr. Marc Edward Rossiter has been the President, Chief Executive Officer and Director at Enerflex Ltd., since May 03, 2019. He is responsible for the Enerflex’s value creation and global growth strategy. M...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD3.79M) is above average for companies of similar size in the Canadian market ($USD850.08K).

Compensation vs Earnings: Marc's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: EFX's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: EFX's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EFX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Enerflex Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enerflex Ltd.
  • Ticker: EFX
  • Exchange: TSX
  • Founded: 1980
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$642.101m
  • Shares outstanding: 89.68m
  • Website: https://www.enerflex.com

Number of Employees


Location

  • Enerflex Ltd.
  • 1331 Macleod Trail SE
  • Suite 904
  • Calgary
  • Alberta
  • T2G OK3
  • Canada

Listings


Biography

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment to the oil and natural gas industry. The company provides custom and s...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:48
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.