About Enerflex Ltd.
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EFXT operates in the Manufacturing | General Industrial Machinery & Equipment | approximately 4,600 employees | led by CEO Marc E. Rossiter.
$1.2 billion 38.5x P/E 1.2x P/B 7.0x EV/EBITDA 3.0% ROE 3.0% rev. growth 0.9% yield
Enerflex Ltd. earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #18 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 91/100, which places EFXT in the top 9 percent of all stocks on this measure. momentum at 83/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, EFXT ranks 9th out of 50 peers, placing it in the 82nd percentile. At $1.2 billion, the company is a small-cap stock with higher potential but also higher risk.
Quality Analysis
Enerflex Ltd.'s quality score of 80/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 3.0% exceeds the sector median of -2.0%. Gross margins of 20.9% suggest a commodity-like business with thin pricing power. Operating margins of 7.3% sit above the 3.0% sector average.
Net margins of 1.3% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 91/100 puts EFXT in the top 9 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 38.5x, an EV/EBITDA of 7.0x, a price-to-book of 1.2x, a price-to-sales of 0.5x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
Enerflex Ltd.'s momentum score of 83/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 83 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of 3.0% provides a moderate fundamental underpinning. A beta of 0.90 means Enerflex Ltd. moves roughly in line with the broader market.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support Enerflex Ltd.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
Enerflex Ltd. earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #18 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position EFXT above the majority of the market.
Explore the full EFXT analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
