NYSE:CFX

Stock Analysis Report

Executive Summary

Colfax Corporation operates as a diversified technology company worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CFX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

40.7%

CFX

11.0%

US Machinery

9.4%

US Market


1 Year Return

-24.8%

CFX

-16.6%

US Machinery

-6.8%

US Market

Return vs Industry: CFX underperformed the US Machinery industry which returned -19.5% over the past year.

Return vs Market: CFX underperformed the US Market which returned -10% over the past year.


Shareholder returns

CFXIndustryMarket
7 Day40.7%11.0%9.4%
30 Day-10.6%-3.9%-3.9%
90 Day-37.9%-22.6%-16.5%
1 Year-24.8%-24.8%-14.1%-16.6%-4.8%-6.8%
3 Year-40.1%-40.1%10.4%2.4%23.4%15.2%
5 Year-52.6%-52.6%30.2%13.6%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CFX ($20.53) is trading below our estimate of fair value ($41.68)

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


Price To Earnings Ratio

PE vs Industry: CFX is poor value based on its PE Ratio (333.2x) compared to the Machinery industry average (15.4x).

PE vs Market: CFX is poor value based on its PE Ratio (333.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CFX is poor value based on its PEG Ratio (5.8x)


Price to Book Ratio

PB vs Industry: CFX is good value based on its PB Ratio (0.7x) compared to the US Machinery industry average (1.6x).


Next Steps

Future Growth

How is Colfax forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

58.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CFX's forecast earnings growth (57.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CFX's earnings (57.4% per year) are forecast to grow faster than the US market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CFX's revenue (2.3% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: CFX's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CFX's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Colfax performed over the past 5 years?

-41.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CFX has a large one-off loss of $187.4M impacting its December 31 2019 financial results.

Growing Profit Margin: CFX's current net profit margins (0.3%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: CFX's earnings have declined by -41.7% per year over the past 5 years.

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

Earnings vs Industry: CFX had negative earnings growth (-92.2%) over the past year, making it difficult to compare to the Machinery industry average (-1.3%).


Return on Equity

High ROE: CFX's Return on Equity (0.5%) is considered low.


Next Steps

Financial Health

How is Colfax's financial position?


Financial Position Analysis

Short Term Liabilities: CFX's short term assets ($1.4B) exceed its short term liabilities ($857.3M).

Long Term Liabilities: CFX's short term assets ($1.4B) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: CFX's debt to equity ratio (66.2%) is considered high.

Reducing Debt: CFX's debt to equity ratio has increased from 45.8% to 66.2% over the past 5 years.

Debt Coverage: CFX's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: CFX's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Colfax's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CFX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CFX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CFX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CFX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CFX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Matt Trerotola (52yo)

4.75s

Tenure

US$3,147,927

Compensation

Mr. Matthew L. Trerotola, also known as Matt, has been the Chief Executive Officer of Colfax Corporation since July 24, 2015 and has been its President since July 2015. Mr. Trerotola has been the President ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD3.15M) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mitchell Rales
Co-Founder & Chairman of the Boardno dataUS$1.007.38% $200.0m
Matthew Trerotola
President4.75yrsUS$3.15m0.10% $2.8m
Christopher Hix
Executive VP of Finance & CFO3.75yrsUS$3.24m0.012% $331.7k
Daniel Pryor
Executive Vice President of Strategy & Business Development6.75yrsUS$4.89m0.072% $1.9m
Shyam Kambeyanda
Executive VP and CEO & President of ESAB3.92yrsUS$2.59m0.061% $1.7m
Steven Breitzka
Interim Senior Vice President of Global Operations & Americasno datano datano data
Terry Ross
Vice President of Investor Relations5.33yrsno datano data
Bradley Tandy
Senior VP & General Counsel1.17yrsno datano data
Patricia Lang
Senior VP & Chief Human Resources Officer1.25yrsno datano data
Jason MacLean
Senior Vice President of Colfax Business System & Supply Chain2.5yrsno data0.0042% $114.0k

3.9yrs

Average Tenure

57yo

Average Age

Experienced Management: CFX's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mitchell Rales
Co-Founder & Chairman of the Boardno dataUS$1.007.38% $200.0m
Matthew Trerotola
President4.75yrsUS$3.15m0.10% $2.8m
Sharon Wienbar
Independent Director3.83yrsUS$205.01k0.017% $473.6k
Patrick Allender
Independent Director11.92yrsUS$220.01k0.19% $5.0m
A. Perfall
Independent Director9.58yrsUS$225.01k0.036% $963.2k
Thomas Gayner
Independent Director11.92yrsUS$205.01k0.047% $1.3m
Rajiv Vinnakota
Independent Director11.92yrsUS$205.01k0.018% $484.2k
Didier P. Teirlinck
Independent Director2.58yrsUS$142.50k0.014% $388.0k
Rhonda Jordan
Independent Director11.17yrsUS$220.01k0.021% $573.0k
Liam Kelly
Director0.25yrno data0.00059% $16.0k

9.6yrs

Average Tenure

59yo

Average Age

Experienced Board: CFX's board of directors are considered experienced (9.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CFX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.8%.


Top Shareholders

Company Information

Colfax Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Colfax Corporation
  • Ticker: CFX
  • Exchange: NYSE
  • Founded: 1860
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$2.708b
  • Shares outstanding: 118.15m
  • Website: https://www.colfaxcorp.com

Number of Employees


Location

  • Colfax Corporation
  • 420 National Business Parkway
  • 5th Floor
  • Annapolis Junction
  • Maryland
  • 20701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFXNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2008
C52DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2008
0I1BLSE (London Stock Exchange)YesCommon StockGBUSDMay 2008
C52BRSE (Berne Stock Exchange)YesCommon StockCHCHFMay 2008

Biography

Colfax Corporation operates as a diversified technology company worldwide. The company operates through two segments, Medical Technology and Fabrication Technology. The Medical Technology segment offers orthopedic solutions, including orthopedic devices and braces, reconstructive and surgical implants, footwear, bone growth stimulators, and software and services spanning the full continuum of patient care, as well as injury prevention, rehabilitation, pain management, and physical therapy under the Aircast, Chattanooga, CMF, Compex, DonJoy, ProCare, DJO Surgical, Dr. Comfort, Exos, and MotionMD brand names. Its products are used by orthopedic specialists, spine surgeons, primary care physicians, pain management specialists, physical therapists, podiatrists, chiropractors, athletic trainers, and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events, and sports related injuries. This segment sells its products through independent distributors, such as healthcare professionals, consumer retail stores, and pharmacies; and direct and independent salespersons. The Fabrication Technology segment formulates, develops, manufactures, and supplies consumable products and equipment for use in cutting, joining, and automated welding of steels, aluminum, and other metals and metal alloys. It also provides welding consumables comprising electrodes, cored and solid wires, and fluxes using a range of specialty and other materials; and cutting consumables, such as electrodes, nozzles, and shields and tips under the ESAB brand name. This segment sells its products through independent distributors and direct sales to the infrastructure, wind power, marine, pipelines, mobile/off-highway equipment, oil, gas, and mining markets. Colfax Corporation was founded in 1860 and is headquartered in Annapolis Junction, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 03:31
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.