Enerflex Ltd. (EFX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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.

Trican Well Service Ltd.

Enerflex Ltd.

TerraVest Industries, Inc.

Ag Growth International, Inc.

Velan, Inc.

EnWave Corp.

H2O Innovation, Inc.

Why is Enerflex Ltd. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.25 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.25 times
The company has been able to generate a Return on Equity (avg) of 2.44% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CAD 388.21 MM
CASH AND EQV(HY) Lowest at CAD 176.62 MM

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 161.73%, its profits have risen by 119.8% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 76.9%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 161.73% in the last 1 year, much higher than market (S&P/TSX 60) returns of 28.13%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Enerflex Ltd. should be less than 10%
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.

161.73%

6.10

43.86%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

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)

2.54

Debt to EBITDA (avg)

2.08

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

1.33

Tax Ratio

54.34%

Dividend Payout Ratio

21.30%

Pledged Shares

Institutional Holding

76.90%

ROCE (avg)

9.72%

ROE (avg)

2.44%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

18.12%

ROE (Latest)

11.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

8What is working for the Company

NET PROFIT(9M)

At CAD 116.19 MM has Grown at 54.7%

DEBT-EQUITY RATIO (HY)

Lowest at 50.35 %

INTEREST COVERAGE RATIO(Q)

Highest at 936.36

RAW MATERIAL COST(Y)

Fallen by -10.52% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.28 times

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 388.21 MM

CASH AND EQV(HY)

Lowest at CAD 176.62 MM

Here's what is working for Enerflex Ltd.

Interest Coverage Ratio

Highest at 936.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 50.35 % 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

Net Profit

At CAD 116.19 MM has Grown at 54.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debtors Turnover Ratio

Highest at 4.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.52% (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.

Operating Cash Flow

Lowest at CAD 388.21 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Cash and Eqv

Lowest at CAD 176.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents