NasdaqGS:KLXE

Stock Analysis Report

KLX Energy Services Holdings

Executive Summary

KLX Energy Services Holdings, Inc. provides completion, intervention, and production services and products to the onshore oil and gas producing regions of the United States.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($80M)



Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has KLX Energy Services Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.2%

KLXE

0.6%

US Energy Services

1.5%

US Market


1 Year Return

-88.2%

KLXE

-30.5%

US Energy Services

20.1%

US Market

Return vs Industry: KLXE underperformed the US Energy Services industry which returned -30.5% over the past year.

Return vs Market: KLXE underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

KLXEIndustryMarket
7 Day-3.2%0.6%1.5%
30 Day-37.0%-10.1%1.4%
90 Day-38.4%0.2%8.7%
1 Year-88.2%-88.2%-28.2%-30.5%22.7%20.1%
3 Yearn/a-54.4%-60.3%50.1%40.5%
5 Yearn/a-57.3%-64.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is KLX Energy Services Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is KLX Energy Services Holdings undervalued compared to its fair value and its price relative to the market?

0.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KLXE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KLXE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KLXE is unprofitable, so we can't compare its PE Ratio to the Energy Services industry average.

PE vs Market: KLXE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KLXE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KLXE is good value based on its PB Ratio (0.2x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is KLX Energy Services Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

49.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLXE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KLXE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KLXE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KLXE's revenue (6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KLXE's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KLXE's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has KLX Energy Services Holdings performed over the past 5 years?

155.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KLXE is currently unprofitable.

Growing Profit Margin: KLXE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KLXE is unprofitable, but has reduced losses over the past 5 years at a rate of 155.7% per year.

Accelerating Growth: Unable to compare KLXE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KLXE is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-32.9%).


Return on Equity

High ROE: KLXE has a negative Return on Equity (-20.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KLX Energy Services Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KLXE's short term assets ($250.7M) exceed its short term liabilities ($74.1M).

Long Term Liabilities: KLXE's short term assets ($250.7M) do not cover its long term liabilities ($255.1M).


Debt to Equity History and Analysis

Debt Level: KLXE's debt to equity ratio (73.9%) is considered high.

Reducing Debt: Insufficient data to determine if KLXE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: KLXE has a high level of physical assets or inventory.

Debt Coverage by Assets: KLXE's debt is covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KLXE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: KLXE has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 32% each year.


Next Steps

Dividend

What is KLX Energy Services Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate KLXE'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 KLXE's dividends per share have been stable in the past.

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

1.4yrs

Average management tenure


CEO

Amin Khoury (80yo)

1.4yrs

Tenure

US$31,900,146

Compensation

Mr. Amin J. Khoury has been Chairman, President and Chief Executive Officer of KLX Energy Services Holdings, Inc. since September 14, 2018. Mr. Khoury had been the Chairman and Chief Executive Officer at K ...


CEO Compensation Analysis

Compensation vs Market: Amin's total compensation ($USD31.90M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Amin's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Amin Khoury
Chairman1.4yrsUS$31.90m4.85% $3.9m
Thomas McCaffrey
Senior VP & CFO1.4yrsUS$19.13m3.63% $2.9m
Gary Roberts
1.4yrsUS$7.21m1.75% $1.4m
Michael Perlman
Treasurer and Senior Director of Investor Relations1.4yrsno datano data
Jonathan Mann
VP of Law & Corporate Secretary0yrsno data0.11% $85.9k
Tim Cooksley
Vice President of Sales0yrsno datano data
Jay Survant
Vice President of Human Resources6.1yrsno datano data
Heather Floyd
VP of Finance & Corporate Controller0yrsno data0.31% $251.5k

1.4yrs

Average Tenure

Experienced Management: KLXE's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Amin Khoury
Chairman1.4yrsUS$31.90m4.85% $3.9m
Peter Del Presto
Independent Director1.4yrsUS$972.93k0.14% $114.1k
Richard Hamermesh
Independent Director1.4yrsUS$972.93k0.15% $119.5k
John Collins
Independent Director1.4yrsUS$972.93k0.22% $178.7k
Theodore Weise
Independent Director1.4yrsUS$875.64k0.16% $124.9k
Stephen Ward
Independent Director1.4yrsUS$875.64k0.12% $94.4k
John Whates
Independent Director1.4yrsUS$875.64k0.12% $95.5k
Benjamin Hardesty
Independent Director1.4yrsUS$875.64k0.12% $94.9k

1.4yrs

Average Tenure

71yo

Average Age

Experienced Board: KLXE's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: KLXE insiders have bought more shares than they have sold 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 7.1%.


Top Shareholders

Company Information

KLX Energy Services Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KLX Energy Services Holdings, Inc.
  • Ticker: KLXE
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$80.454m
  • Shares outstanding: 24.09m
  • Website: https://www.klxenergy.com

Number of Employees


Location

  • KLX Energy Services Holdings, Inc.
  • 1300 Corporate Center Way
  • Wellington
  • Florida
  • 33414
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLXENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2018
KX4DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2018

Biography

KLX Energy Services Holdings, Inc. provides completion, intervention, and production services and products to the onshore oil and gas producing regions of the United States. It offers a range of technical services, and related tools and equipment to companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. The company was incorporated in 2018 and is headquartered in Wellington, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:58
End of Day Share Price2020/02/14 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


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.