olivLaw · US equity research
Enerflex Ltd. EFXT
General Industrial Machinery & Equipment · SIC 3560 · Vertical: General Industrial Machinery & Equipment (SIC 3560)
Enerflex Ltd. is a Canadian company supplying gas compression, processing and power equipment to clients in the oil and natural gas industry. The company files its annual report with the SEC on Form 40-F as a foreign private issuer, and 2025 was marked by the planned divestiture of most of its Asia Pacific operations.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Enerflex Ltd. (EFXT) stock was 20.45 USD (−12.38% on the day), with market capitalisation 2.5 bn USD, P/E 39.3 on diluted EPS of 0.52 USD over the last 12 months, dividend yield 0.68%, beta 1.12, 52-week range 12.65–28.39 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 37.7
- weak (30–45)
- Bollinger (20, 2)
- 21.25 – 26.77
- below the lower band · %B -0.15 · band width 23.0%
- SMA 50 / 200
- 23.14 / 22.75
- mixed trend
- MACD (12, 26, 9)
- -0.29 / 0.09
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −18.3% | −1.1% | −17.2 pp | — |
| 3 months | −7.0% | −0.5% | −6.6 pp | — |
| 6 months | −24.4% | +4.4% | −28.8 pp | — |
| Year to date | +32.5% | +12.3% | +20.2 pp | — |
| 1 year | +62.2% | +13.5% | +48.6 pp | +12.6% |
| 3 years | +370.1% | +76.4% | +293.7 pp | +46.8% |
| 5 years | +190.5% | +63.7% | +126.8 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 2-quarter history (min 29.7, median 34.0, max 38.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | unavailable | unavailable | 2.3 bn | 2.4 bn | 2.6 bn |
| Revenue YoY | unavailable | unavailable | unavailable | +3.0% | +6.5% |
| Net income | unavailable | unavailable | -83.0 m | 32.0 m | 64.0 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | +100.0% |
| Diluted EPS | -0.21 | -1.04 | -0.67 | 0.26 | 0.52 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | +100.0% |
| net % | unavailable | unavailable | -3.5% | 1.3% | 2.5% |
| Free cash flow | unavailable | unavailable | 190.0 m | 308.0 m | 326.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 81.0 m USD
- Financial debt
- 582.0 m USD
- Net debt
- 501.0 m USD
- Equity
- 1.1 bn USD
- Total assets
- 2.7 bn USD
- Debt / equity
- 0.53x
- Current ratio
- 1.13x
- ROE
- 6.0%
- ROA
- 2.3%
- FCF margin
- 12.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Revenue | — | — | 2.3 bn | 2.4 bn | 2.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | — | — | 1.9 bn | 1.9 bn | 2.0 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | — | — | 457.0 m | 504.0 m | 582.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | — | — | 121.0 m | 173.0 m | 306.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 87.6 m | 128.3 m | — | — | — | SEC (XBRL)· 02 Mar 2023verified |
| Interest expense | — | — | 118.0 m | 103.0 m | 124.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | — | — | -52.0 m | 81.0 m | 163.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | — | — | 31.0 m | 49.0 m | 99.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | — | — | -83.0 m | 32.0 m | 64.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | -0.21 | -1.04 | -0.67 | 0.26 | 0.52 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 89.7 m | 97.0 m | 123.8 m | 124.2 m | 123.1 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | — | — | 0.07 | 0.07 | 0.14 | SEC (XBRL)· 26 Feb 2026derived |
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Cash | — | 187.0 m | 95.0 m | 92.0 m | 81.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | — | 337.0 m | 398.0 m | 398.0 m | 345.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | — | 273.0 m | 294.0 m | 258.0 m | 280.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | — | 1.1 bn | 1.1 bn | 1.0 bn | 992.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | — | 113.0 m | 104.0 m | 96.0 m | 102.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | — | 498.0 m | 433.0 m | 422.0 m | 430.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | — | 76.0 m | 55.0 m | 37.0 m | 29.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | — | 3.1 bn | 3.0 bn | 2.8 bn | 2.7 bn | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | — | 20.0 m | 40.0 m | 0 | — | SEC (XBRL)· 27 Feb 2025verified |
| Long-term debt | — | 1.0 bn | 879.0 m | 708.0 m | 582.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | — | 839.0 m | 868.0 m | 911.0 m | 879.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | — | 2.0 bn | 1.9 bn | 1.7 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | — | 1.1 bn | 1.1 bn | 1.0 bn | 1.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Shares outstanding at year end | — | 123.7 m | 124.0 m | 124.1 m | 121.8 m | SEC (XBRL)· 26 Feb 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|
| Operating cash flow | — | — | 206.0 m | 324.0 m | 345.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | — | — | 16.0 m | 16.0 m | 19.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | — | — | 190.0 m ≈ | 308.0 m ≈ | 326.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | — | — | -119.0 m | -59.0 m | -103.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | — | — | -149.0 m | -263.0 m | -250.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | — | — | 9.0 m | 9.0 m | 17.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 45 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 2.5 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet20
- Returns46
- Quality50
- Valuation51
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.83 – 82.71 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)49.63 – 82.71 (Mid 62.05)WACC 8.5% · starting FCFF 430.2 m USD · terminal value share of EV 76%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E7.51 – 13.64 (Mid 12.32)7 companies used · median multiple 23.7x · quartiles 14.4x – 26.2xGTEC, GTES, IR, ITW, TWIN, ZBRA, ZWS
- Dividend discount (DDM)1.83 – 2.47 (Mid 2.10)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 45/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 15.8% | 50 (vs peers) | 17% |
| Net margin · Quality | 2.5% | 0 (vs peers) | 10% |
| FCF conversion · Quality | 509.4% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.5x | 15 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.1x | 27 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 39.3x | 13 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 13.1% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.7% | 10 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 5.2% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet20/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality50/100 · 3/3 factors with a value
- Returns46/100 · 2/2 factors with a value
- Valuation51/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Enerflex Ltd (EFXT). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 2.6 bn USD in 2025; YoY growth 6.5%; net margin 2.5%; ROE 6.0%.
The estimated value range is 7.51–13.64 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 12.32 USD, the price of 20.45 USD leaves a potential of -39.8% (value / price − 1) and a margin of safety of -66.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 45/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 509.4%
- FCF yield: 13.1%
- Payout ratio (FCF): 5.2%
What contradicts it
- Net margin: 2.5%
- Interest coverage: 2.5x
- Current ratio: 1.1x
- P/E (TTM): 39.3x
- Shareholder yield (distributions): 0.7%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
General Industrial Machinery & Equipment (SIC 3560) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ITWIllinois Tool Works Inc | 83.4 bn | 26.1 | 101.7% | 19.4% | +0.9% | +18% / +21% |
| IRIngersoll Rand Inc. | 32.3 bn | 23.7 | 13.4% | 17.2% | +5.7% | +5% / +18% |
| ZBRAZebra Technologies Corporation | 15.7 bn | 26.8 | 16.5% | 9.8% | +8.3% | +32% / +40% |
| ZWSZurn Elkay Water Solutions Corporation | 7.5 bn | 26.3 | 17.7% | 15.9% | +8.3% | −5% / +53% |
| GTESGates Industrial Corporation Ltd. | 6.1 bn | 17.0 | 10.6% | 10.4% | +1.0% | +7% / +100% |
| EFXTEnerflex Ltd | 2.5 bn | 39.3 | 6.0% | 2.5% | +6.5% | +62% / +370% |
| GHMGraham Corporation | 816.0 m | 67.1 | 7.5% | 4.5% | +16.9% | +21% / +275% |
| TWINTwin Disc, Incorporated | 370.7 m | 11.9 | 16.3% | 8.0% | +11.9% | +64% / +86% |
| GTECGreenland Technologies Holding Corporation | 10.7 m | 0.9 | 16.0% | 12.3% | +8.0% | −51% / −79% |
1- and 3-year price returns: for EFXT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 12.46 Total return -39% · Per year -39% | 22.01 Total return 8% · Per year 8% | 33.12 Total return 63% · Per year 63% |
| 3 years | 12.58 Total return -37% · Per year -14% | 24.96 Total return 24% · Per year 8% | 41.18 Total return 104% · Per year 27% |
| 5 years | 12.71 Total return -35% · Per year -8% | 28.32 Total return 43% · Per year 7% | 51.20 Total return 156% · Per year 21% |
- Exit P/E± 6.24
- Net margin± 4.37
- Annual revenue growth± 3.52
- Annual dilution± 0.37
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 26 Feb 2026; since then the company filed 6-K (29 Oct 2026), 6-K (27 Oct 2026), 6-K (13 Oct 2026), 6-K (07 Oct 2026), 6-K (01 Oct 2026).
In brief
Enerflex Ltd. is a Canadian company supplying gas compression, processing and power equipment to clients in the oil and natural gas industry. The company files its annual report with the SEC on Form 40-F as a foreign private issuer, and 2025 was marked by the planned divestiture of most of its Asia Pacific operations.
SWOT
Strengths
- The company has a client base spread across several regions and a backlog that gives visibility into the engineered systems business.
- Long-term energy infrastructure contracts bring recurring revenue that could support cash flows.
- The company maintains a governance structure that meets exchange and regulatory requirements, according to the filing.
Weaknesses
- The engineered systems business is cyclical and tied to clients' investment decisions in the energy industry.
- Reliance on certain suppliers could lead to added costs and project delays.
- International operations carry risks tied to cultural, political and economic factors in foreign jurisdictions.
Opportunities
- Growth in North American LNG exports could generate new orders for compression and processing.
- Infrastructure investment in the Middle East, Africa and Latin America could widen the product offering.
- Expanded gas egress capacity in Canada could open opportunities for the engineered systems division.
Threats
- Tariffs could weigh on costs and margins if mitigation measures do not succeed.
- Competitive pressure could limit the company's ability to hold pricing and margins.
- Regulatory changes and climate-related requirements could raise compliance costs.
Risks
- Completion of the Asia Pacific divestiturehigh
The transaction depends on satisfying conditions and obtaining regulatory approvals within the expected timeframes. If these are not met, the expected benefits could be delayed.
- Recovery of amounts from a terminated projectmedium
The company could fail to fully recover amounts owed in connection with an international project whose contract was terminated in 2024.
- Supply and tariff risksmedium
The loss of certain suppliers could increase costs and delay projects, with effects on client relationships.
- Currency riskmedium
Exchange rate fluctuations could affect results if the hedging policy does not offset adverse movements.
- Health, safety and environmental riskshigh
Catastrophic events could affect human health, local communities and the environment, and remediation costs could be high.
Investment thesis
What would need to be true (bull case)
- If LNG exports from North America keep growing, demand for compression and processing could support order growth.
- Long-term infrastructure contracts could stabilize cash flows and reduce dependence on investment cycles.
- If the Asia Pacific divestiture closes, the company could focus its resources on markets with the greatest potential.
What would break the thesis
- If tariffs persist, supply costs could stay high and compress margins.
- The engineered systems business remains cyclical, and a fall in client investment could quickly weigh on new orders.
- If the Asia Pacific divestiture faces delays or additional conditions, uncertainty over the company's structure could persist.
What to watch
- Completion of the Asia Pacific operations divestiture and its effects on the company's structure2026
- Development of the engineered systems order backlognext 10-K
- Recovery of amounts from the international project terminated in 20242026
- Effects of tariffs and supplier diversification on marginsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 26 Feb 2026; since then the company filed 6-K (29 Oct 2026), 6-K (27 Oct 2026), 6-K (13 Oct 2026), 6-K (07 Oct 2026), 6-K (01 Oct 2026).
The business
Enerflex designs, manufactures and services natural gas compression systems, processing systems and power solutions for clients in the oil and gas sector. Activity is organized into three product lines: Engineered Systems, Energy Infrastructure and After-Market Services. The company reports in US dollars and is listed on the Toronto Stock Exchange (TSX) and the NYSE.
Segments
Engineered Systems
This line delivers custom-built compression and processing equipment and systems. According to the report, the backlog gives management strong visibility for this business, and expanded gas egress capacity in Canada could open new opportunities.
Energy Infrastructure
This line includes energy infrastructure assets supplied under long-term contracts. Management states that investments in long-term infrastructure in the Eastern Hemisphere could increase the recurring nature of the business, and existing contracts are expected to be extended or renewed on substantially similar commercial terms.
After-Market Services
After-Market Services covers maintenance and support for installed equipment. Management describes this line as one that could stabilize long-term cash flows and reduce the cyclicality of the business.
Market context
Demand for Enerflex equipment depends on investment in natural gas production and transport. The report points to rising domestic demand and a growing liquefied natural gas export industry in North America, as well as opportunities in Latin America and in the Middle East and Africa. Management believes natural gas will play a critical role in the energy transition.
Trends
- Growth of liquefied natural gas exportstailwind
Development of the North American LNG export industry could generate additional demand for compression and processing equipment.
- Divestiture of Asia Pacific operationsmixed
Completion of the divestiture of most Asia Pacific operations depends on approvals and conditions that are not yet assured, and the effects on the company's structure could be significant.
- Tariffs and supply chainsheadwind
Tariffs and supply chain risks could raise costs and delay projects if the company's mitigation measures fall short.
- Energy transitiontailwind
Management expects energy demand to keep outpacing supply from new renewable capacity, which could support the role of natural gas.
Competitive position
The report does not name direct competitors in detail, but it lists competitive pressures and the ability to meet them within a reasonable cost structure as risk factors. The company aims to maintain its position through long-term contracts and relationships with clients and suppliers.
- Gas compression equipment manufacturers
The report refers generically to competition in natural gas equipment without naming companies.
- Gas processing system suppliers
Competition in this segment is mentioned among risk factors, without identifying specific companies.
- Regional after-market service providers
Maintenance services could attract local competitors, according to the risk factors the company presents.
- Energy system builders in the Middle East and Africa
Competition in these growing markets is noted in the company's outlook, without naming firms.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)29 Oct 2026
- Current report (foreign issuer)27 Oct 2026
- Current report (foreign issuer)13 Oct 2026
- Current report (foreign issuer)13 Oct 2026
- Current report (foreign issuer)07 Oct 2026
- Current report (foreign issuer)01 Oct 2026
- Current report (foreign issuer)30 Sept 2026
- Current report (foreign issuer)06 Aug 2026
- Current report (foreign issuer)13 Jul 2026
- Current report (foreign issuer)06 Jul 2026
Sources
- [1] Form 40-F, fiscal year ended 2025-12-31 · SEC / Enerflex Ltd. · 26 Feb 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.