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CHX

ChampionX NasdaqGS:CHX Stock Report

Last Price

US$21.80

Market Cap

US$4.4b

7D

7.6%

1Y

-18.8%

Updated

16 May, 2022

Data

Company Financials +
CHX fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends2/6

CHX Stock Overview

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

Rewards

Trading at 36.7% below our estimate of its fair value

Earnings are forecast to grow 26.66% per year

Became profitable this year

Risk Analysis

No risks detected for CHX from our risk checks.

ChampionX Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ChampionX
Historical stock prices
Current Share PriceUS$21.80
52 Week HighUS$30.48
52 Week LowUS$19.00
Beta2.89
1 Month Change-13.42%
3 Month Change0.74%
1 Year Change-18.78%
3 Year Change-36.92%
5 Year Changen/a
Change since IPO-46.71%

Recent News & Updates

Apr 05
Estimating The Intrinsic Value Of ChampionX Corporation (NASDAQ:CHX)

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

CHXUS Energy ServicesUS Market
7D7.6%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

Is CHX's price volatile compared to industry and market?
CHX volatility
CHX Average Weekly Movement7.6%
Energy Services Industry Average Movement9.3%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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

FoundedEmployeesCEOWebsite
n/a7,000Soma 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, 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

How do ChampionX's earnings and revenue compare to its market cap?
CHX fundamental statistics
Market CapUS$4.43b
Earnings (TTM)US$144.23m
Revenue (TTM)US$3.26b

30.7x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHX income statement (TTM)
RevenueUS$3.26b
Cost of RevenueUS$2.47b
Gross ProfitUS$787.48m
Other ExpensesUS$643.26m
EarningsUS$144.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.71
Gross Margin24.19%
Net Profit Margin4.43%
Debt/Equity Ratio40.4%

How did CHX perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

11%

Payout Ratio

Does CHX pay a reliable dividends?

See CHX dividend history and benchmarks
When do you need to buy CHX by to receive an upcoming dividend?
ChampionX dividend dates
Ex Dividend DateJun 30 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend44 days
Days until Dividend pay date73 days

Does CHX pay a reliable dividends?

See CHX dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation 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

3/6

Future 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

3/6

Past 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

6/6

Financial 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

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.38%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateJun 30 2022Dividend Pay DateJul 29 202229 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.