The Company in a Nutshell
- The company operates in 50 locations across 17 countries.
- Enerflex offers “build-own-operate-maintain” (BOOM) project for customers.
- EFX surfs on high demand for natural gas.
- We do not cover Enerflex at the moment.
Date Reviewed | N/A |
Company Name | Enerflex Ltd |
Symbol | EFX.TO |
Sector | Energy |
Industry | Oil & Gas Equipment & Services |
Beta | 1.714 |
PRO Rating | 2 |
Dividend Safety | 2 |
Business Model
Enerflex Ltd. is a Canada-based integrated global provider of energy infrastructure and energy transition solutions, delivering natural gas processing, compression, power generation, refrigeration, cryogenic, and produced water solutions. The Company's North America segment is engaged in manufacturing natural gas infrastructure under contract, refrigeration, processing, and electric power equipment, including custom and standard compression packages and modular natural gas processing equipment, refrigeration systems and produced water treatment services. Its Latin America segment operates its energy infrastructure assets under take-or-pay contracts, providing after-market services. The Company's Eastern Hemisphere segment operates its energy infrastructure assets under take-or-pay contracts, manufacturing, after-market services, including parts and components, as well as operations, maintenance, and overhaul services, and rentals of compression and processing equipment.
Current price | 7.86 |
ROE | -7.50 % |
ROIC | 0.00 % |
Shareholder Yield | 0.90 % |
5-Yr Total Return | -34.25 % |
1-Yr Total Return | -3.55 % |
Next Earnings Date | 11-06-24 |
Latest Quarter Information
What the CEO said:
We are beginning the year with strong operational results, as the Energy Infrastructure and After-market Services business lines continue to deliver solid and steady performance. Visibility across the Company’s business remains strong, supported by approximately $1.6 billion of contracted revenue that will be recognized over the coming years from our Energy Infrastructure assets. This will be supplemented by the recurring nature of our After-market Services business and a $1.3 billion Engineered Systems backlog. Our focus remains on further enhancing the profitability of core operations to enable continued debt reduction.
What we say:
06-23-2024, Enerflex reported a revenue growth of 4.6% driven by the Energy Infrastructure product line. Gross margin was 19% of revenue, compared to 26% in 1Q'23 and adjusted EBITDA was $69M compared to $90M in 1Q'23. In Q1, Enerflex's cash provided by operating activities was $101M, which included a net working capital recovery of $83M and it invested $17M in the business, including $8M of growth investments. The company recorded bookings of $420M in Engineered Systems and ended the quarter with a total backlog of $1.3B. The utilization rate was 93% in Enerflex’s U.S. contract compression business. It repaid $72M of long-term debt and had a net debt balance of $743M at Q1-end.
Investment Thesis
Dividend Triangle
5-Yr Rev. Growth | 14.70 % |
5-Yr EPS Growth | 0.00 % |
5-Yr Div Growth | -23.85 % |
Potential Risks
Debt/Equity | 0.95 |
Financial Debt to EBITDA (TTM) | 2.55 |
Current Ratio (Quarterly) | 1.25 |
Credit Score | 9 |
Dividend Growth Perspective
Dividend ($) | 0.1 |
Dividend Yield Fwd | 1.30 % |
Dividend Frequency | Quarterly |
Average 5-Yr Yield | 1.35 % |
Payout Ratio (%) | 0.00 |
Cash Payout Ratio (%) | 3.70 |
DGR 1-Yr | 1.20 |
DGR 3-Yr | -16.20 |
DGR 5-Yr | -23.85 |
DGR Streak | |
Chowder Score | -22.55 |
Next DVD PMT | 10-02-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
Market Cap | 940.00 M |
PE Ratio | 0.00 |
Fwd PE | 16.25 |
Price to Book Ratio | 0.70 |
DDM Valuation | N/A |
Average 5-Yr PE | 8.92 |
Value Score | 80 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.