One-glance verdict
Within fair range
$25.70 our estimate vs market $19.40
Wall Street consensus: $41.00 (59.6% higher than our fair-value estimate)
25% below our estimate
Fundamentals snapshot
Enerflex Ltd.
EFXT · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$19.40
52-week range
$12.57 - $29.15
Market cap
$2.37B
Balance sheet
Stretched
3.80x Stretched
Net debt $380.00M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 6.5% last year.
- Reward Returns 6.0% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Insider ownership is only 0.5% (peer median: 2.1%).
What this company does
Enerflex Ltd.
Enerflex Ltd. provides equipment and services for natural gas processing and power generation, helping companies handle gas and produce electricity. Much of their money comes from long-term contracts for this equipment and services, which provides a steady stream of income (recurring revenue – money that comes in predictably over time). This matters because these contracts mean Enerflex can rely on consistent earnings even when the economy is up and down.
How the company got here
Enerflex Ltd. was founded in 1980 and has grown through strategic acquisitions and technological advancements. The company's history is marked by a transformation from equipment manufacturing to offering a broader range of services, including aftermarket support, water treatment, and international operations. This evolution has positioned Enerflex as a significant player in the energy infrastructure sector, adapting to changing market demands and expanding its capabilities over the decades. The company has a legacy of over a century, building on the foundations of various organizations that contributed to its engineering and operational expertise.
What it actually does
Enerflex designs, manufactures, installs, operates, and maintains energy infrastructure solutions. They provide modular systems and services for natural gas processing, power generation, and treated water. Essentially, Enerflex helps other companies in the energy sector manage and process resources from the initial extraction point all the way to the pipeline, ensuring efficiency and reliability throughout the process. Their offerings span the entire lifecycle of equipment and facilities, from initial design to ongoing maintenance and support.
North America
This segment of Enerflex's business focuses on providing its range of natural gas, power technology, and treated water solutions within Canada and the United States. It encompasses the company's operations in these key energy-producing regions, serving customers involved in natural gas processing and midstream sectors. This segment is a significant part of Enerflex's overall business, leveraging its extensive branch network for rapid deployment and local support.
Latin America
Enerflex's operations in Latin America cover countries like Mexico and South America, where it offers its specialized energy infrastructure solutions. This region is a core focus for the company, with strategic investments and growth opportunities. The business here involves providing natural gas processing, compression, and treated water equipment and services tailored to the specific needs of the local energy markets.
Eastern Hemisphere
This segment includes Enerflex's international operations across Europe, Africa, the Middle East, Australia, and Asia. The company provides its full suite of modular natural gas, power technology, and treated water solutions in these diverse global markets. Enerflex's presence in the Eastern Hemisphere allows it to serve a wide range of customers and capitalize on energy development in various countries.
Engineered Systems
This business line involves the engineering, design, and manufacturing of critical equipment and systems for the energy industry. These systems include solutions for gas processing, compression, cryogenic applications (which involve very low temperatures), and electric power generation. Essentially, Enerflex designs and builds the specialized machinery that energy companies need to process and handle natural gas and other energy resources.
After-Market Services
This part of Enerflex's business focuses on supporting its customers after the initial sale of equipment. It includes providing comprehensive mechanical services, distributing replacement parts, offering operations and maintenance solutions, and managing equipment optimization programs. These services are crucial for ensuring that the equipment runs efficiently and reliably over its entire lifespan, generating recurring revenue for Enerflex.
What management is betting on now
Enerflex's current strategy centers on operational excellence and disciplined growth within attractive, growing markets like natural gas, LNG exports, and power generation. Management is focused on competing intentionally, improving relentlessly, and capitalizing on opportunities where the company has a clear advantage. They aim to increase profitability through operational improvements, targeted growth in key regions like North America and the Middle East, and disciplined capital allocation to drive shareholder value. The company is also emphasizing its role in the energy transition by offering low-carbon solutions.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $25.70 vs current price $19.40
Wall Street consensus is the average analyst price target: $41.00 (59.6% higher than our fair-value estimate).
Our most-likely fair value is $25.70 a share — about 32.5% away from today's price of $19.40, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $380.0M. Interest coverage 3.8x.
Net debt
$380.00M
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 $607.00M Interest coverage 3.80x This is the baseline the peer rows are being compared against.
Total debt $2.35B 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 — Interest coverage 1.70x -55% vs EFXT Carries about 2.2x less debt cushion than EFXT.
Total debt $2.32B Interest coverage 6.41x +68% vs EFXT Carries about 1.7x more debt cushion than EFXT.
Total debt $1.63B 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
1 Risk
Rewards
-
Revenue grew 6.5% last year.
-
Returns 6.0% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
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)
32.88x
Forward P/E
9.73x
P/B
1.94x
P/S
0.98x
EV/EBITDA
7.25x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
23.6%
Operating margin
12.8%
Net margin
2.9%
ROE
6.0%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.50x
Current ratio
1.23x
Quick ratio
0.80x
Total debt
$607.00M
Total cash
$227.00M
Growth
How the business has been compounding
Revenue TTM
$2.42B
Revenue 5Y CAGR
25.2%
EPS TTM
0.59
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$345.00M
Free CF TTM
$230.00M
FCF margin
9.5%
Dividend
Shareholder payout
Yield
0.6%
Payout ratio
20.8%
Last ex-div date
2026-11-12