KLX Energy ascents over 7 percent despite modest market dip

KLX Energy Services secures negative usage of assets of -0.41 %, realizing only $0.0041 for each dollar of assets held by the firm. Unsuccessful asset utilization conveys that the company is being less competent with each dollar of assets it secures. Strictly speaking asset utilization of KLX Energy Services shows how unproductive it operates for each dollar spent on its assets. The entity has a beta of -0.1479. Let's try to break down what KLX Energy's beta means in this case. The returns on MARKET and KLX Energy are completely uncorrelated. The beta indicator helps investors understand whether KLX Energy moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if KLX Energy deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported previous year revenue of 544 M. Net Loss for the year was (96.4 M) with profit before overhead, payroll, taxes, and interest of 81.2 M. KLX Energy Average Equity is rather stable at the moment. Also, KLX Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 6 years.

	2017	2018	2019 (projected)
Revenues USD	320.5 M	495.3 M	544 M
Revenues	320.5 M	495.3 M	544 M

Possible reversal in July 2020

As of the 24th of June, KLX Energy secures the market risk adjusted performance of (22.06), risk adjusted performance of 0.4376, and mean deviation of 12.94. KLX Energy Services technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for KLX Energy, which can be compared to its peers in the industry. Please verify KLX Energy Services jensen alpha and downside variance to decide if KLX Energy Services is priced more or less accurately, providing market reflects its recent price of 2.86 per share. Please also check out KLX Energy total risk alpha, which is currently at 0.5849 to check the company can sustain itself at some point in the future.

Our Final Take On KLX Energy

While many of the other players under oil & gas equipment & services industry are still a little expensive, even after the recent corrections, KLX Energy may offer a potential longer-term growth to investors. To conclude, as of 24th of June 2020, our ongoing 30 days buy-sell advice on the firm is Strong Sell. We believe KLX Energy is overvalued with close to average chance of bankruptcy for the next two years. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to short some or all of your KLX Energy holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to KLX Energy.