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Enerflex Ltd.

  • Market Cap: Small Cap
  • Industry: Industrial Manufacturing
  • ISIN: CA29269R1055
  • TSE: EFX
CAD
31.50
-0.27 (-0.85%)

Sep 21

TSE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Biorem, Inc.
Reko International Group, Inc.
Thermal Energy International, Inc.
ATS Corp.
TerraVest Industries, Inc.
Trican Well Service Ltd.
Enerflex Ltd.
EnWave Corp.
Velan, Inc.
Ag Growth International, Inc.
H2O Innovation, Inc.

Why is Enerflex Ltd. ?

1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.29 times
  • Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.29 times
  • The company has been able to generate a Return on Equity (avg) of 2.44% signifying low profitability per unit of shareholders funds
2
Flat results in Jun 26
  • INTEREST(Q) At CAD 16.61 MM has Grown at 10.1%
  • CASH AND EQV(HY) Lowest at CAD 170.58 MM
  • OPERATING PROFIT(Q) Lowest at CAD 131.52 MM
3
With ROE of 11.47%, it has a expensive valuation with a 2.76 Price to Book Value
  • The stock is trading at a premium compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 127.01%, its profits have risen by 119.8% ; the PEG ratio of the company is 0.2
4
Reducing Promoter Confidence
  • Promoters have decreased their stake in the company by -4.75% over the previous quarter and currently hold 0.51% of the company
  • Promoters decreasing their stake may signify reduced confidence in the future of the business
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Enerflex Ltd. should be less than 10%
  2. Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Enerflex Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Enerflex Ltd.
112.69%
6.36
43.95%
S&P/TSX 60
20.36%
2.51
12.02%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
27.81%
EBIT Growth (5y)
40.79%
EBIT to Interest (avg)
2.72
Debt to EBITDA (avg)
1.89
Net Debt to Equity (avg)
0.54
Sales to Capital Employed (avg)
1.36
Tax Ratio
64.33%
Dividend Payout Ratio
21.30%
Pledged Shares
0
Institutional Holding
79.26%
ROCE (avg)
10.13%
ROE (avg)
2.44%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
2.76
EV to EBIT
12.15
EV to EBITDA
7.98
EV to Capital Employed
2.20
EV to Sales
1.42
PEG Ratio
0.19
Dividend Yield
NA
ROCE (Latest)
18.12%
ROE (Latest)
11.47%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CAD 519.15 MM

DEBT-EQUITY RATIO (HY)

Lowest at 44.7 %

RAW MATERIAL COST(Y)

Fallen by -8.43% (YoY

-4What is not working for the Company
INTEREST(Q)

At CAD 16.61 MM has Grown at 10.1%

CASH AND EQV(HY)

Lowest at CAD 170.58 MM

OPERATING PROFIT(Q)

Lowest at CAD 131.52 MM

Here's what is working for Enerflex Ltd.

Debt-Equity Ratio
Lowest at 44.7 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow
Highest at CAD 519.15 MM
in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Raw Material Cost
Fallen by -8.43% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Enerflex Ltd.

Interest
At CAD 16.61 MM has Grown at 10.1%
period on period (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit
Lowest at CAD 131.52 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Cash and Eqv
Lowest at CAD 170.58 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

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