Enerflex (EFX) AI Stock Analysis

• Market Cap: C$1.85B
• Dividend Yield: 0.98%
• Average Volume (3M): 428.26K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 1.48
• Revenue Growth: -0.41%
• EPS Growth: N/A
• Country: CA
• Employees: 4,600
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.68
• Shares Outstanding: 122,247,230
• 10 Day Avg. Volume: 508,098
• 30 Day Avg. Volume: 428,259
• PEG Ratio: -0.28
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 3.64
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$17.06
• Price Target Upside: 9.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 74 Outperform
• Price Target: C$14.50 ▼(-6.69% Downside)

Enerflex's overall stock score is driven by strong technical indicators and positive earnings call sentiment, reflecting operational efficiency and strategic growth. While financial performance shows stability, challenges in revenue and cash flow need addressing. The valuation suggests the stock is attractively priced, supporting a favorable investment outlook.

Positive Factors

Operational Efficiency

Enerflex's reduction in SG&A expenses through cost-saving initiatives enhances operational efficiency, supporting long-term profitability.

Strong EBITDA Growth

Record-breaking EBITDA growth reflects Enerflex's ability to capitalize on its core business strengths, indicating robust financial health.

Healthy Backlog

A strong backlog in Engineered Systems ensures future revenue streams and demonstrates sustained demand for Enerflex's offerings.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market penetration or competitive pressures, potentially affecting long-term growth prospects.

Free Cash Flow Challenges

Negative free cash flow due to increased capital spending may strain financial resources, impacting liquidity and investment capacity.

Net Working Capital Impact

Increased accounts receivable and inventory investments can tie up cash, affecting operational flexibility and cash flow management.

Enerflex Business Overview & Revenue Model

Company Description

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, 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; and designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, refrigeration systems, and electric power solutions, as well as engages in re-engineering, re-configuration, and re-packaging of compressors for various field applications; and modular processing equipment and waste gas systems for natural gas facilities. It also offers after-market services, parts distribution, operations and maintenance solutions, equipment optimization and maintenance programs, manufacturer warranties, exchange components, long-term service agreements, and technical services. In addition, the company rents natural gas compressors totaling approximately 800,000 horsepower. It serves small to large independent producers, integrated oil and natural gas companies, midstream and petrochemical companies, power generation companies, users of natural gas-fired electric power, and carbon capture players in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, the United Kingdom, Bahrain Kuwait, Oman, the United Arab Emirates, Australia, New Zealand, Indonesia, Malaysia, and Thailand. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

How the Company Makes Money

Enerflex makes money primarily through the sale and servicing of its energy infrastructure products and solutions. The company's revenue model includes equipment sales, where it designs and manufactures custom-engineered products for natural gas and oil applications. Additionally, Enerflex generates revenue through its aftermarket services, which include maintenance, repair, and operational support for its installed equipment base. These services often result in long-term contracts and recurring revenue streams. The company also engages in long-term lease agreements and rental arrangements for its equipment, providing flexibility and financial benefits to its clients. Enerflex's earnings are further supported by strategic partnerships and alliances with industry players, enabling it to expand its market reach and enhance its service offerings.

Enerflex Financial Statement Overview

Summary

Enerflex demonstrates a stable financial position with improved profitability metrics and manageable debt levels. However, challenges in revenue growth and cash flow generation persist, as indicated by a decline in revenue and free cash flow.

Income Statement

Enerflex's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 20.9%, but the net profit margin is relatively low at 2.7%. Revenue has declined by 10.7% in the TTM, indicating challenges in maintaining growth. However, EBIT and EBITDA margins have improved compared to previous years, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 0.74, indicating manageable leverage. Return on equity has improved to 6.2% in the TTM, showing better profitability. The equity ratio remains healthy, suggesting a stable capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.3% in the TTM, which is a concern. However, the operating cash flow to net income ratio is 0.40, indicating decent cash generation relative to net income. The free cash flow to net income ratio of 0.87 suggests that the company is generating sufficient cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	2.41B	3.16B	1.78B	960.16M	1.22B
Gross Profit	498.82M	504.00M	555.50M	322.72M	219.55M	298.18M
EBITDA	446.00M	369.00M	269.70M	93.24M	124.81M	204.14M
Net Income	129.00M	32.00M	-110.92M	-100.94M	-18.45M	69.07M
Balance Sheet
Total Assets	2.88B	4.01B	3.91B	4.27B	2.19B	2.18B
Cash, Cash Equivalents and Short-Term Investments	74.00M	132.27M	140.51M	253.78M	172.76M	95.68M
Total Debt	753.00M	1.12B	1.32B	1.48B	388.44M	451.64M
Total Liabilities	1.76B	2.50B	2.52B	2.73B	837.69M	782.88M
Stockholders Equity	1.13B	1.51B	1.39B	1.54B	1.35B	1.40B
Cash Flow
Free Cash Flow	261.89M	341.12M	185.00M	-96.07M	167.81M	86.50M
Operating Cash Flow	337.53M	324.00M	273.31M	19.77M	225.16M	220.25M
Investing Cash Flow	-71.00M	-59.00M	-158.89M	43.25M	-63.53M	-137.76M
Financing Cash Flow	-324.16M	-263.00M	-200.49M	11.85M	-83.89M	-82.05M

Enerflex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EFX, the sentiment is Positive. The current price of 15.54 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 13.16, and above the 200-day MA of 11.87, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 71.70 is Negative, neither overbought nor oversold. The STOCH value of 77.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EFX.

Enerflex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCW	79 Outperform	1.30B	11.24	21.71%	3.26%	-2.14%	-6.88%
TOT	79 Outperform	532.13M	8.27	11.34%	2.66%	14.74%	62.76%
CEU	76 Outperform	1.96B	11.03	―	1.60%	8.36%	2.09%
EFX	74 Outperform	C$1.85B	10.44	12.21%	0.98%	-0.41%	―
NOA	61 Neutral	561.45M	15.11	7.63%	2.50%	14.58%	-37.71%
CFW	52 Neutral	294.60M	30.05	1.50%	―	-4.63%	-92.13%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Enerflex Corporate Events

Enerflex Achieves Record Q2 2025 EBITDA Amid Strong Market Positioning

Enerflex Ltd. reported a record adjusted EBITDA of $130 million for the second quarter of 2025, reflecting improved operational efficiencies and cost-saving initiatives. The company’s financial results show steady revenue growth, a strong backlog in engineered systems and energy infrastructure contracts, and a significant return on capital employed. Enerflex’s strategic investments in growth opportunities and its U.S. contract compression business, driven by rising natural gas production, underscore its robust market positioning and future revenue potential.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Extends Credit Facility and Schedules Q2 Results Release

Enerflex Ltd. announced an extension of its revolving credit facility, maintaining an $800 million availability and extending the maturity date to July 2028, which enhances its liquidity and supports long-term growth and value creation for shareholders. The company will release its second-quarter financial results on August 7, 2025, with a conference call to follow, indicating a commitment to transparency and stakeholder engagement.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.