One-glance verdict
Within fair range
$16.17 our estimate vs market $22.39
Wall Street consensus: $30.25 (87.0% higher than our fair-value estimate)
38% above our estimate
Fundamentals snapshot
Enerflex Ltd.
EFXT · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$22.39
52-week range
$10.57 - $29.15
Market cap
$2.73B
Balance sheet
Stretched
3.80x Stretched
Net debt $523.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.5% last year.
- Reward Returns 4.6% on equity, ahead of 33% of its peers.
- Risk Stock trades 49.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.5% (peer median: 2.1%).
What this company does
Enerflex Ltd.
Enerflex builds and services the large, essential equipment used to process natural gas, generate power, and treat water for the energy industry. A significant portion of its money comes from long-term contracts to operate and maintain this equipment, which provides recurring revenue (predictable income that comes in regularly, like a subscription). This steady service income helps balance out the less predictable sales of new, large-scale energy projects.
How the company got here
Founded in Calgary, Canada, in 1980, Enerflex started by manufacturing equipment for the natural gas industry. Over the years, it grew by acquiring other companies, which added new technologies and expanded its reach around the world. A major turning point came in 2022 when Enerflex bought a company called Exterran, a move that doubled its size and significantly boosted its capabilities. This history of combining different companies has made Enerflex a large, global player in the energy services field.
What it actually does
Enerflex builds and services the massive, complex equipment that energy companies use to handle natural gas, generate electricity, and treat water. Think of them as the company that provides the custom-built factories and machinery needed to take raw natural gas from a well, clean it, and prepare it for use. They don't just sell the equipment; they also offer maintenance, parts, and operational services to keep it all running smoothly for their customers.
Engineered Systems
This is the company's design-and-build division, where they create custom equipment from the ground up. Customers, like large energy producers, pay Enerflex to engineer and manufacture modular systems for processing natural gas, compressing it for transport, generating power, or treating water. The health of this business is often measured by its backlog (the total value of confirmed orders that have not yet been built and delivered), which gives an idea of future work.
After-Market Services
This part of the business takes care of the equipment after it has been installed and is running in the field. It's like the service and parts department for the massive systems Enerflex builds, providing everything from spare parts and routine maintenance to full operational crews. This segment provides a steady and predictable stream of revenue (money earned from sales and services) because customers need these ongoing services to keep their facilities operating efficiently.
Energy Infrastructure
In this business, instead of just selling the equipment, Enerflex sometimes owns and operates it for their clients. They build a natural gas processing or compression facility and then charge their customer a fee to use it over a long-term contract. This is a significant business for Enerflex, as these long-term agreements provide a reliable and consistent source of income for many years.
What management is betting on now
The company's current strategy is to simplify its operations, optimize its efficiency, and grow in key markets like North America, Latin America, and the Middle East. Management is focused on improving how the business runs day-to-day to generate more cash and be more profitable. They see major opportunities in the growing global demand for natural gas and in providing power generation equipment, including for energy-hungry data centers. A key priority is disciplined capital allocation (the process of deciding where to spend money to get the best return) to create more value for its investors.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $16.17 vs current price $22.39
Wall Street consensus is the average analyst price target: $30.25 (87.0% higher than our fair-value estimate).
Our most-likely fair value is $16.17 a share — about 27.8% away from today's price of $22.39, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $523.0M. Interest coverage 3.8x.
Net debt
$523.00M
Interest coverage
3.80x
Enerflex Ltd.'s profit covers its interest bill about 3.8 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
EFXT
BASELINE
Enerflex Ltd.
Total debt $597.00M Interest coverage 3.80x This is the baseline the peer rows are being compared against.
Total debt $2.36B Interest coverage 3.48x -8% vs EFXT Has roughly the same debt cushion as EFXT.
Total debt $2.82B Interest coverage 2.06x -46% vs EFXT Carries about 1.9x less debt cushion than EFXT.
Total debt $2.96B Interest coverage 1.70x -55% vs EFXT Carries about 2.2x less debt cushion than EFXT.
Total debt $2.33B Interest coverage 6.41x +68% vs EFXT Carries about 1.7x more debt cushion than EFXT.
Total debt $1.62B Interest coverage 5.43x +43% vs EFXT Carries about 1.4x more debt cushion than EFXT.
What you should know
The case for and against EFXT
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.5% last year.
-
Returns 4.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 49.7% above its 5-year average P/E.
-
Insider ownership is only 0.5% (peer median: 2.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
50.89x
Forward P/E
11.83x
P/B
2.34x
P/S
1.06x
EV/EBITDA
8.06x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
23.4%
Operating margin
10.8%
Net margin
2.1%
ROE
4.6%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.51x
Current ratio
1.19x
Quick ratio
0.70x
Total debt
$597.00M
Total cash
$74.00M
Growth
How the business has been compounding
Revenue TTM
$2.57B
Revenue 5Y CAGR
25.2%
EPS TTM
0.44
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$345.00M
Free CF TTM
$230.00M
FCF margin
8.9%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
27.0%
Last ex-div date
2026-08-19