OTCPK:ENRF.F

Stock Analysis Report

Executive Summary

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment to the oil and natural gas industry.

Rewards

Trading at 46.7% below its fair value

Earnings grew by 59.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -34.2% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ENRF.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ENRF.F

0.6%

US Energy Services

1.5%

US Market


1 Year Return

-37.1%

ENRF.F

-30.5%

US Energy Services

20.1%

US Market

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

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


Shareholder returns

ENRF.FIndustryMarket
7 Day0%0.6%1.5%
30 Day-10.0%-10.1%1.4%
90 Day-10.7%0.2%8.7%
1 Year-35.1%-37.1%-28.2%-30.5%22.7%20.1%
3 Year-40.7%-44.9%-54.4%-60.3%50.1%40.5%
5 Year-30.2%-38.6%-57.3%-64.5%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ENRF.F ($7.91) is trading below our estimate of fair value ($14.84)

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


Price To Earnings Ratio

PE vs Industry: ENRF.F is good value based on its PE Ratio (6.1x) compared to the Energy Services industry average (14.6x).

PE vs Market: ENRF.F is good value based on its PE Ratio (6.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ENRF.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ENRF.F is overvalued based on its PB Ratio (0.7x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Enerflex forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENRF.F's earnings are forecast to decline over the next 3 years (-34.2% per year).

Earnings vs Market: ENRF.F's earnings are forecast to decline over the next 3 years (-34.2% per year).

High Growth Earnings: ENRF.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ENRF.F's revenue is expected to decline over the next 3 years (-10.7% per year).

High Growth Revenue: ENRF.F's revenue is forecast to decline over the next 3 years (-10.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ENRF.F's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Enerflex performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ENRF.F has high quality earnings.

Growing Profit Margin: ENRF.F's current net profit margins (7.5%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: ENRF.F's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: ENRF.F's earnings growth over the past year (59.6%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: ENRF.F earnings growth over the past year (59.6%) exceeded the Energy Services industry -32.9%.


Return on Equity

High ROE: ENRF.F's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Enerflex's financial position?


Financial Position Analysis

Short Term Liabilities: ENRF.F's short term assets (CA$984.0M) exceed its short term liabilities (CA$564.5M).

Long Term Liabilities: ENRF.F's short term assets (CA$984.0M) exceed its long term liabilities (CA$536.9M).


Debt to Equity History and Analysis

Debt Level: ENRF.F's debt to equity ratio (30%) is considered satisfactory.

Reducing Debt: ENRF.F's debt to equity ratio has reduced from 46.1% to 30% over the past 5 years.

Debt Coverage: ENRF.F's debt is well covered by operating cash flow (61%).

Interest Coverage: ENRF.F's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: ENRF.F's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

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

4.44%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: ENRF.F's dividend (4.44%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ENRF.F's dividend (4.44%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ENRF.F has been paying a dividend for less than 10 years.

Growing Dividend: ENRF.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.6%), ENRF.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ENRF.F's dividends in 3 years are forecast to be well covered by earnings (36.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Marc Rossiter (47yo)

0.8yrs

Tenure

CA$2,530,282

Compensation

Mr. Marc Edward Rossiter has been President and Chief Executive Officer at Enerflex Ltd., since May 03, 2019. Mr. Rossiter served as an Executive Vice President and Chief Operating Officer of Enerflex Ltd. ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD1.91M) is about average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: Marc's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Marc Rossiter
President0.8yrsCA$2.53m0.087% CA$611.9k
Gregory Stewart
President of United States of America0yrsCA$1.77m0.017% CA$119.7k
Patricia Martinez
President of Latin America Operations0yrsCA$2.36m0.0056% CA$39.3k
Sanjay Bishnoi
Senior VP & CFO0.4yrsno data0.000040% CA$280.4
Stefan Ali
Director of Investor Relations0yrsno datano data
Warren Breedlove
VP & General Counsel0yrsno datano data
David Izett
Senior VP & General Counsel0.4yrsno datano data
Jamie Plosz
Director of Marketing & Public Relations0yrsno datano data
Carol Ionel
VP of Human Resources and Director of Training & Change Management7.9yrsno datano data
Toufic Khalik
Managing Director of ME12.1yrsno datano data

0.8yrs

Average Tenure

47yo

Average Age

Experienced Management: ENRF.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marc Rossiter
President0.8yrsCA$2.53m0.087% CA$611.9k
William Dunn
Independent Director8.7yrsCA$253.60k0.033% CA$234.5k
Robert Boswell
Independent Director8.7yrsCA$239.97k0.050% CA$347.5k
Kevin Reinhart
Independent Director2.8yrsCA$240.67k0.024% CA$166.2k
Stephen Savidant
Independent Chairman of the Board0yrsCA$372.22k0.028% CA$195.5k
H. Marshall
Independent Director8.7yrsCA$263.13k0.11% CA$773.9k
Helen Wesley
Independent Director6.5yrsCA$242.80kno data
Juan Villegas
Director0.8yrsno data0.017% CA$118.8k
Michael Weill
Independent Director8.7yrsCA$238.11k0.0089% CA$62.5k
Maureen Jackson
Independent Director2.8yrsCA$223.48k0.0056% CA$39.1k

6.5yrs

Average Tenure

63yo

Average Age

Experienced Board: ENRF.F's board of directors are considered experienced (6.5 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

Enerflex Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Enerflex Ltd.
  • Ticker: ENRF.F
  • Exchange: OTCPK
  • Founded: 1980
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: CA$929.073m
  • Listing Market Cap: CA$701.076m
  • Shares outstanding: 89.68m
  • Website: https://www.enerflex.com

Number of Employees


Location

  • Enerflex Ltd.
  • 1331 Macleod Trail SE
  • Suite 904
  • Calgary
  • Alberta
  • T2G OK3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EFXTSX (The Toronto Stock Exchange)YesNew Common SharesCACADJun 2011
7EXDB (Deutsche Boerse AG)YesNew Common SharesDEEURJun 2011
ENRF.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDJun 2011

Biography

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, and electric power generation equipment to the oil and natural gas industry. The company provides custom and standard compression packages for reciprocating and screw compressor applications; designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, and refrigeration and waste gas systems, as well as engages in re-engineering, reconfiguration, and repackaging of compressors for various field applications. It also offers after-market mechanical, parts distribution, operation, maintenance, and overhaul services; and integrated turnkey power generation and gas processing facilities. In addition, the company rents and leases electric and processing equipment, and natural gas compressors totaling approximately 640,000 horsepower. It operates in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, Australia, the United Kingdom, the United Arab Emirates, Oman, Bahrain, Indonesia, Malaysia, Thailand, and internationally. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:53
End of Day Share Price2020/02/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.