| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 2/6 |
CHX Stock Overview
ChampionX Corporation provides chemistry solutions, and engineered equipment and technologies to oil and gas companies worldwide.
Rewards
Risk Analysis
No risks detected for CHX from our risk checks.
ChampionX Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$21.80 |
| 52 Week High | US$30.48 |
| 52 Week Low | US$19.00 |
| Beta | 2.89 |
| 1 Month Change | -13.42% |
| 3 Month Change | 0.74% |
| 1 Year Change | -18.78% |
| 3 Year Change | -36.92% |
| 5 Year Change | n/a |
| Change since IPO | -46.71% |
Recent News & Updates
Estimating The Intrinsic Value Of ChampionX Corporation (NASDAQ:CHX)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ChampionX Corporation...
Shareholder Returns
| CHX | US Energy Services | US Market | |
|---|---|---|---|
| 7D | 7.6% | 11.2% | 0.7% |
| 1Y | -18.8% | 27.1% | -10.8% |
Return vs Industry: CHX underperformed the US Energy Services industry which returned 27.4% over the past year.
Return vs Market: CHX underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| CHX volatility | |
|---|---|
| CHX Average Weekly Movement | 7.6% |
| Energy Services Industry Average Movement | 9.3% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 2.9% |
Stable Share Price: CHX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: CHX's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| n/a | 7,000 | Soma Somasundaram | https://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, emissions monitoring solutions, 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
| CHX fundamental statistics | |
|---|---|
| Market Cap | US$4.43b |
| Earnings (TTM) | US$144.23m |
| Revenue (TTM) | US$3.26b |
30.7x
P/E Ratio1.4x
P/S RatioIs CHX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CHX income statement (TTM) | |
|---|---|
| Revenue | US$3.26b |
| Cost of Revenue | US$2.47b |
| Gross Profit | US$787.48m |
| Other Expenses | US$643.26m |
| Earnings | US$144.23m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.71 |
| Gross Margin | 24.19% |
| Net Profit Margin | 4.43% |
| Debt/Equity Ratio | 40.4% |
How did CHX perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield11%
Payout RatioDoes CHX pay a reliable dividends?
See CHX dividend history and benchmarks| ChampionX dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2022 |
| Dividend Pay Date | Jul 29 2022 |
| Days until Ex dividend | 44 days |
| Days until Dividend pay date | 73 days |
Does CHX pay a reliable dividends?
See CHX dividend history and benchmarksValuation
Is ChampionX undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
36.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHX ($21.8) is trading below our estimate of fair value ($34.42)
Significantly Below Fair Value: CHX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CHX is good value based on its PE Ratio (30.7x) compared to the US Energy Services industry average (31.5x).
PE vs Market: CHX is poor value based on its PE Ratio (30.7x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: CHX is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: CHX is overvalued based on its PB Ratio (2.5x) compared to the US Energy Services industry average (1.3x).
Future Growth
How is ChampionX forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
26.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHX's forecast earnings growth (26.7% per year) is above the savings rate (1.9%).
Earnings vs Market: CHX's earnings (26.7% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CHX's revenue (2.7% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: CHX's revenue (2.7% 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 (13.5%).
Past Performance
How has ChampionX performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-29.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHX has high quality earnings.
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 -29.2% 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 (-1.8%).
Return on Equity
High ROE: CHX's Return on Equity (8.3%) is considered low.
Financial Health
How is ChampionX's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: CHX's short term assets ($1.5B) exceed its short term liabilities ($831.9M).
Long Term Liabilities: CHX's short term assets ($1.5B) exceed its long term liabilities ($962.3M).
Debt to Equity History and Analysis
Debt Level: CHX's net debt to equity ratio (30.4%) is considered satisfactory.
Reducing Debt: CHX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: CHX's debt is well covered by operating cash flow (27.1%).
Interest Coverage: CHX's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Dividend
What is ChampionX current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.38%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CHX's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: CHX's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether CHX's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if CHX's dividend payments are increasing as they only just started paying a dividend.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (10.5%), CHX's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (57.9%), CHX's dividend payments are covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Soma Somasundaram (55 yo)
4yrs
Tenure
US$5,775,293
Compensation
Mr. Sivasankaran Somasundaram, also known as Soma, is an Independent Director of Magellan GP, LLC at Magellan Midstream Partners, L.P. since May 01, 2022. He serves as an Independent Director at Magellan M...
CEO Compensation Analysis
Compensation vs Market: Soma's total compensation ($USD5.78M) is about average for companies of similar size in the US market ($USD6.90M).
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 considered experienced (2.3 years average tenure).
Board Members
Experienced Board: CHX's board of directors are considered experienced (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.
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
- Implied Market Cap: US$4.434b
- Shares outstanding: 203.40m
- Website: https://www.championx.com
Number of Employees
Location
- ChampionX Corporation
- Building 4
- 12th Floor
- The Woodlands
- Texas
- 77381
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/16 00:00 |
| End of Day Share Price | 2022/05/16 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.