Enerflex (EFX) AI Stock Analysis

• Market Cap: C$2.17B
• Dividend Yield: 0.8%
• Average Volume (3M): 427.95K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.34
• 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): 0.42
• Shares Outstanding: 122,247,230
• 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$22.13
• Price Target Upside: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$19.50 ▲(3.67% Upside)

Enerflex's overall stock score of 71 reflects a solid financial performance with strong technical indicators and positive earnings call highlights. The company's strategic initiatives and improved profitability metrics are significant strengths, although challenges in revenue growth and cash flow generation need attention. The technical analysis suggests strong momentum, but caution is advised due to potential overbought conditions.

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 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: 18.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 18.81 is above the 20-day moving average (MA) of 16.87, above the 50-day MA of 15.68, and above the 200-day MA of 12.21, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 73.10 is Negative, neither overbought nor oversold. The STOCH value of 70.18 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
CEU	76 Outperform	$2.04B	11.61	23.31%	1.65%	8.36%	2.09%
TOT	76 Outperform	C$538.83M	8.37	11.66%	2.69%	14.74%	62.76%
TCW	72 Outperform	$1.12B	9.26	18.06%	3.80%	9.24%	6.35%
EFX	71 Outperform	C$2.17B	12.25	12.48%	0.80%	5.92%	―
NOA	68 Neutral	$577.27M	15.54	8.24%	2.48%	14.58%	-37.71%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
CFW	55 Neutral	C$269.69M	27.35	1.53%	―	-4.63%	-92.13%

Enerflex Corporate Events

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.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

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.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

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.

The most recent analyst rating on (TSE:EFX) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on Enerflex stock, see the TSE:EFX Stock Forecast page.

Enerflex Ltd. Reports Record EBITDA Amid Leadership Changes

Enerflex Ltd. recently held its earnings call, showcasing a robust operational and financial performance. The company reported record EBITDA figures and strong results across various business lines. While the overall sentiment was positive, challenges such as increased free cash flow usage and ongoing leadership transition were noted as areas of concern.

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.