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CHX

ChampionXNasdaqGS:CHX Stock Report

Market Cap

US$5.1b

7D

-4.5%

1Y

196.0%

Updated

22 Oct, 2021

Data

Company Financials +
CHX fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

CHX Overview

ChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide.

ChampionX Competitors

Schlumberger

NYSE:SLB

US$47.4b

Baker Hughes

NYSE:BKR

US$26.4b

Halliburton

NYSE:HAL

US$23.1b

NOV

NYSE:NOV

US$5.8b

Price History & Performance

Summary of all time highs, changes and price drops for ChampionX
Historical stock prices
Current Share PriceUS$25.19
52 Week HighUS$6.87
52 Week LowUS$30.48
Beta3.21
1 Month Change20.07%
3 Month Change14.29%
1 Year Change196.01%
3 Year Change-35.58%
5 Year Changen/a
Change since IPO-38.43%

Recent News & Updates

Sep 19

ChampionX Corporation: International Markets To Rev Up Growth Engine

With a robust artificial lift and chemical product line in the inventory since the Ecolab merger, CHX plans to tap new international territories. Expect CHX's operating margin to improve in Q3, led by higher volumes and the impact of the price increases. The steady US drilling activity recovery will also support its topline recovery. With steep growth in free cash flow, sufficient liquidity, and deleveraging, the company has limited financial risks.

Aug 31
Calculating The Intrinsic Value Of ChampionX Corporation (NASDAQ:CHX)

Calculating The Intrinsic Value Of ChampionX Corporation (NASDAQ:CHX)

How far off is ChampionX Corporation ( NASDAQ:CHX ) from its intrinsic value? Using the most recent financial data...

Aug 05
ChampionX's (NASDAQ:CHX) Robust Earnings Are Supported By Other Strong Factors

ChampionX's (NASDAQ:CHX) Robust Earnings Are Supported By Other Strong Factors

ChampionX Corporation ( NASDAQ:CHX ) just reported healthy earnings but the stock price didn't move much. Investors are...

Shareholder Returns

CHXUS Energy ServicesUS Market
7D-4.5%-1.6%1.7%
1Y196.0%99.7%30.3%

Return vs Industry: CHX exceeded the US Energy Services industry which returned 99.8% over the past year.

Return vs Market: CHX exceeded the US Market which returned 31.1% over the past year.

Price Volatility

Is CHX's price volatile compared to industry and market?
CHX volatility
CHX Beta3.21
Industry Beta2.3
Market Beta1

Stable Share Price: CHX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CHX's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a6,600Soma Somasundaramhttps://www.championx.com

ChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide. The company’s Production Chemical Technologies segment offers onshore and offshore chemical solutions, such as corrosion inhibitors, scale inhibitors, emulsion breakers, and biocides to oil and natural gas production and midstream markets to manage and control corrosion, oil and water separation, flow assurance, sour gas treatment, and water-related issues. The company’s Production & Automation Technologies segment provides artificial lift equipment, end-to-end automation and digital solutions, and other production equipment, including electrical submersible pumping systems, gas lift systems, jet pumps, multiplex surface pumps, plunger lift equipment, progressive cavity pumping systems, downhole rod lift systems, chemical injection systems, flow control valves, and gauges under the Harbison-Fischer, Norris, Alberta Oil Tool, Oil Lift Technology, PCS Ferguson, Pro-Rod, Upco, Unbridled ESP, Norriseal-Wellmark, Quartzdyne, Spirit, Theta, Timberline, and Windrock brands.

ChampionX Fundamentals Summary

How do ChampionX's earnings and revenue compare to its market cap?
CHX fundamental statistics
Market CapUS$5.08b
Earnings (TTM)US$12.47m
Revenue (TTM)US$2.77b

407.9x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHX income statement (TTM)
RevenueUS$2.77b
Cost of RevenueUS$2.13b
Gross ProfitUS$644.06m
ExpensesUS$631.59m
EarningsUS$12.47m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)0.062
Gross Margin23.22%
Net Profit Margin0.45%
Debt/Equity Ratio52.2%

How did CHX perform over the long term?

See historical performance and comparison

Valuation

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

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHX ($25.19) is trading below our estimate of fair value ($29.63)

Significantly Below Fair Value: CHX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHX is poor value based on its PE Ratio (407.9x) compared to the US Energy Services industry average (32.4x).

PE vs Market: CHX is poor value based on its PE Ratio (407.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CHX is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: CHX is overvalued based on its PB Ratio (3x) compared to the US Energy Services industry average (1.2x).


Future Growth

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

76.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHX's forecast earnings growth (76.4% per year) is above the savings rate (2%).

Earnings vs Market: CHX's earnings (76.4% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: CHX's revenue (4.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CHX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHX's Return on Equity is forecast to be low in 3 years time (15.3%).


Past Performance

How has ChampionX performed over the past 5 years?

-63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHX has a large one-off loss of $81.5M impacting its June 30 2021 financial results.

Growing Profit Margin: CHX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CHX has become profitable over the past 5 years, growing earnings by -63.9% per year.

Accelerating Growth: CHX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CHX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-19%).


Return on Equity

High ROE: CHX's Return on Equity (0.7%) is considered low.


Financial Health

How is ChampionX's financial position?


Financial Position Analysis

Short Term Liabilities: CHX's short term assets ($1.4B) exceed its short term liabilities ($686.6M).

Long Term Liabilities: CHX's short term assets ($1.4B) exceed its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: CHX's debt to equity ratio (52.2%) is considered high.

Reducing Debt: CHX's debt to equity ratio has increased from 0.02% to 52.2% over the past 5 years.

Debt Coverage: CHX's debt is well covered by operating cash flow (44.3%).

Interest Coverage: CHX's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

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

0.83%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CHX'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 CHX'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?

1.8yrs

Average management tenure


CEO

Soma Somasundaram (55 yo)

3.42yrs

Tenure

US$2,952,261

Compensation

Mr. Sivasankaran Somasundaram, also known as Soma, serves as the President and Chief Executive Officer at ChampionX Corporation (formerly known as Apergy Corporation) since May 9, 2018 and serves as a Dire...


CEO Compensation Analysis

Compensation vs Market: Soma's total compensation ($USD2.95M) is below average for companies of similar size in the US market ($USD6.34M).

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


Leadership Team

Experienced Management: CHX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: CHX's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

ChampionX Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: ChampionX Corporation
  • Ticker: CHX
  • Exchange: NasdaqGS
  • Founded: NaN
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$5.083b
  • Shares outstanding: 201.80m
  • Website: https://www.championx.com

Number of Employees


Location

  • ChampionX Corporation
  • Building 4
  • 12th Floor, Suite 1200
  • The Woodlands
  • Texas
  • 77381
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 23:10
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
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.