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Enerflex

EFXT
43
Oil & Gas Equipment & Services · Energy
Price
$23.46
+0.00 (+0.00%)
Market Cap
$2.86B
Exchange
New York Stock Exchange
Winston Score
43
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+37.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 89.7M (2021) → 123.1M (2025)

Enerflex Ltd. is a Canadian company that builds and services equipment used to process and move natural gas. Its core products include natural gas compression systems, processing facilities, and power generation equipment. The company serves oil and gas producers around the world who need to handle gas after it comes out of the ground.

Enerflex makes money in two main ways: selling engineered equipment to customers and providing long-term services and rentals that generate recurring revenue. It operates across North America, Latin America, the Middle East, and Asia-Pacific, giving it a broad geographic footprint. The company's rental and after-market service business creates some stickiness, since customers rely on Enerflex to maintain critical equipment over many years. The main risk is that its revenue depends heavily on oil and gas producers' willingness to spend, which tends to fall sharply when energy prices drop.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+4.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+75.0% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (1%)

Research and development spending

Insider Activity

0.5%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$220M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Enerflex is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
24.3%
Thin — 24.3% gross margin
Operating Margin
11.3%
Modest — 11.3% operating margin
ROCE
3.8%
Weak — 3.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+11.5%
Steady sales growth (11.5% YoY)
EPS YoY
-11.7%
Earnings shrinking (-11.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
319%
Turns 319% of profit into real cash
FCF Margin
6.7%
Modest free cash flow (6.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.50
Conservative — low debt load (0.50)
Interest Cover
4.38x
Adequate interest coverage (4.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
44.3x
Pricey — P/E 44.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+36.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (44.3 → 8.2)

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Dividends

Dividend Yield
0.48%
Small dividend — 0.48% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+21.7%
Dividend growing fast (21.7% YoY)

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