ChampionX Corporation
ChampionX Corporation Fundamental Analysis
ChampionX Corporation (CHX) shows weak financial fundamentals with a PE ratio of 29.27, profit margin of 9.49%, and ROE of 8.96%. The company generates $1.8B in annual revenue with weak year-over-year growth of -3.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CHX's fundamental strength across five key dimensions:
Efficiency Score
WeakCHX struggles to generate sufficient returns from assets.
Valuation Score
ModerateCHX shows balanced valuation metrics.
Growth Score
WeakCHX faces weak or negative growth trends.
Financial Health Score
ExcellentCHX maintains a strong and stable balance sheet.
Profitability Score
WeakCHX struggles to sustain strong margins.
Key Financial Metrics
Is CHX Expensive or Cheap?
P/E Ratio
CHX trades at 29.27 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CHX's PEG of -3.51 indicates potential undervaluation.
Price to Book
The market values ChampionX Corporation at 2.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.98 times EBITDA. This signals the market has high growth expectations.
How Well Does CHX Make Money?
Net Profit Margin
For every $100 in sales, ChampionX Corporation keeps $9.49 as profit after all expenses.
Operating Margin
Core operations generate 13.60 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.96 in profit for every $100 of shareholder equity.
ROA
ChampionX Corporation generates $4.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ChampionX Corporation produces operating cash flow of $274.47M, showing steady but balanced cash generation.
Free Cash Flow
ChampionX Corporation generates strong free cash flow of $203.21M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.06 in free cash annually.
FCF Yield
CHX converts 4.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.27
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CHX Stacks Against Its Sector Peers
| Metric | CHX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.27 | 21.17 | Worse (Expensive) |
| ROE | 8.96% | 943.00% | Weak |
| Net Margin | 9.49% | -75302.00% (disorted) | Weak |
| Debt/Equity | 0.34 | -0.48 (disorted) | Distorted |
| Current Ratio | 2.25 | 6.33 | Strong Liquidity |
| ROA | 4.82% | -10948340.00% (disorted) | Weak |
CHX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ChampionX Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.51%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
149.44%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
53.67%
Industry Style: Cyclical, Value, Commodity
High Growth