Enerflex (EFX) AI Stock Analysis

• Market Cap: C$2.57B
• Dividend Yield: 0.73%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.31
• Revenue Growth: 5.92%
• EPS Growth: N/A
• Country: CA
• Employees: 4,600
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.41
• Shares Outstanding: 121,801,780
• 10 Day Avg. Volume: 399,228
• 30 Day Avg. Volume: 427,946
• 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$22.83
• Price Target Upside: 8.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: C$22.50 ▲(6.58% Upside)

Enerflex's strong financial performance and technical indicators are the primary drivers of its solid stock score. The company's strategic initiatives and leadership changes are promising, though cash flow challenges and potential margin compression warrant attention. The stock's valuation is fair, supporting its growth trajectory in the Oil & Gas Equipment & Services industry.

Positive Factors

Revenue Growth

The significant revenue increase indicates strong demand for Enerflex's products and services, driven by successful project execution, enhancing long-term growth prospects.

Record Adjusted EBITDA

Record adjusted EBITDA reflects improved operational efficiency and profitability, supporting sustained financial health and competitive positioning.

Strategic Contract Wins

Securing major contracts strengthens Enerflex's market position and ensures a steady revenue stream, contributing to long-term business stability.

Negative Factors

Revenue Decline

A decline in revenue growth poses challenges in maintaining market share and could impact future profitability if not addressed.

Free Cash Flow Decline

Decreasing free cash flow limits Enerflex's ability to invest in growth opportunities and manage financial obligations, affecting long-term financial flexibility.

Supply Chain Constraints

Supply chain issues could delay project execution and impact revenue realization, posing risks to operational efficiency and customer satisfaction.

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 generates revenue through several key streams, primarily from the design, manufacture, and installation of natural gas processing and compression equipment. The company also earns money through service contracts related to the operation and maintenance of its systems, which provide ongoing support to clients. Additionally, Enerflex engages in project development and engineering services that contribute to its revenue. Significant partnerships with major energy companies and a focus on long-term contracts help stabilize its income. The demand for cleaner energy solutions and the growing natural gas sector further enhance its financial performance.

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 10.7% revenue decline and a 13.3% drop in free cash flow growth.

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	2.81B	2.41B	3.16B	1.78B	960.16M	1.22B
Gross Profit	646.33M	504.00M	555.50M	322.72M	219.55M	298.18M
EBITDA	480.93M	369.00M	266.04M	93.24M	141.91M	204.14M
Net Income	150.48M	32.00M	-110.92M	-100.94M	-18.45M	69.07M
Balance Sheet
Total Assets	3.97B	4.01B	3.91B	4.27B	2.19B	2.18B
Cash, Cash Equivalents and Short-Term Investments	89.05M	132.27M	140.51M	253.78M	172.76M	95.68M
Total Debt	1.00B	1.12B	1.32B	1.48B	388.44M	451.64M
Total Liabilities	2.37B	2.50B	2.52B	2.73B	837.69M	782.88M
Stockholders Equity	1.61B	1.51B	1.39B	1.54B	1.35B	1.40B
Cash Flow
Free Cash Flow	219.00M	341.12M	185.00M	-96.07M	167.81M	86.50M
Operating Cash Flow	279.00M	324.00M	273.31M	19.77M	225.16M	220.25M
Investing Cash Flow	-86.00M	-59.00M	-158.89M	43.25M	-63.53M	-137.76M
Financing Cash Flow	-220.00M	-263.00M	-200.49M	11.85M	-83.89M	-82.05M

Enerflex Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 21.11 is above the 20-day moving average (MA) of 20.49, above the 50-day MA of 18.85, and above the 200-day MA of 13.37, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 58.01 is Neutral, neither overbought nor oversold. The STOCH value of 43.97 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
EFX	80 Outperform	C$2.57B	13.55	12.48%	0.73%	5.92%	―
TCW	78 Outperform	C$1.23B	10.29	18.06%	3.57%	9.24%	6.35%
TOT	78 Outperform	C$560.76M	9.42	10.51%	2.59%	15.58%	47.55%
CEU	76 Outperform	C$2.58B	15.31	22.50%	1.29%	5.79%	-5.08%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	64 Neutral	C$3.54B	38.47	15.90%	0.43%	50.38%	25.63%
STEP	56 Neutral	C$400.15M	-49.68	-1.94%	―	-9.19%	-119.27%

Enerflex Corporate Events

Enerflex Announces $400 Million Senior Notes Offering to Optimize Financial Structure

Enerflex Ltd. has announced the pricing of a $400 million senior unsecured notes offering, with the notes due in 2031. This financial move is aimed at redeeming the company’s outstanding 9.000% Senior Secured Notes due 2027, which will be replaced by the new 6.875% notes. The offering is expected to close on December 11, 2025, and is part of Enerflex’s strategy to optimize its financial structure, potentially impacting its market positioning and stakeholder interests by reducing interest expenses and extending debt maturity.

Enerflex Announces $400 Million Senior Notes Offering to Optimize Debt Structure

Enerflex Ltd. has announced a $400 million private offering of senior unsecured notes due 2031, which will be used to redeem its existing 9.000% Senior Secured Notes due 2027. This strategic financial move aims to optimize the company’s debt structure, potentially enhancing its financial flexibility and market positioning.

Enerflex Appoints Céline Gerson as Independent Director to Strengthen Board Expertise

Enerflex Ltd. has appointed Céline Gerson as a new independent director to its Board of Directors. Gerson brings 25 years of experience with Fortune 500 companies, enhancing the Board’s skillset as Enerflex continues to execute its strategy. Her appointment is expected to contribute to the company’s focus on creating sustainable shareholder value and strengthening its position as a global leader in energy infrastructure solutions.

Enerflex Reports Record Q3 2025 Results and Leadership Change

Enerflex Ltd. reported strong financial results for the third quarter of 2025, with record adjusted EBITDA and return on capital employed. The company generated $777 million in revenue, driven by the commencement of the Bisat-C Expansion Facility, and increased its quarterly dividend to CAD$0.0425 per share. Despite a decrease in free cash flow due to working capital investments, Enerflex achieved a new record ROCE of 16.9%, reflecting improved operational efficiencies and cost-saving initiatives. The appointment of Paul E. Mahoney as President and CEO marks a strategic leadership change aimed at enhancing the company’s global operations.

Enerflex to Announce Q3 Financial Results on November 6, 2025

Enerflex Ltd. announced it will release its financial results and operating highlights for the third quarter on November 6, 2025. The release will be followed by a conference call and webcast where senior management will discuss the results, providing stakeholders with insights into the company’s performance and strategic direction.

Enerflex Ltd. Appoints Paul Mahoney as New CEO to Drive Strategic Growth

Enerflex Ltd. has appointed Paul E. Mahoney as its new President, CEO, and Director, effective September 29, 2025, following a comprehensive global search. Mahoney, with over 30 years of experience in the industrial and energy sectors, is expected to drive Enerflex’s strategic priorities, including enhancing core operations’ profitability and capitalizing on natural gas demand. His leadership is anticipated to bring fresh insights and energy to the company, benefiting shareholders, clients, and employees.