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Wild options for KLX Energy shareholders

December 7, 2020  By Ellen Johnson
Macroaxis Story
KLX Energy Gross Margin is projected to increase slightly based on the last few years of reporting. The past year's Gross Margin was at 0.14. The current year Net Cash Flow from Operations is expected to grow to about 62.7 M, whereas Earnings before Tax are forecasted to decline to (113.2 M). As many investors are getting excited about energy space, it is fair to digest KLX Energy Services. I will take a closer look at this stock and the latest sentiment generated by shareholders. This post is to show some fundamental factors affecting KLX Energy's products and services. I will also exhibit how it may impact the investing outlook for KLX Energy in January.
Published over a year ago
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Reviewed by Michael Smolkin

About 39.0% of KLX Energy outstanding shares are owned by corporate insiders. Insiders ownership of KLX Energy Services refers to the amount of KLX Energy Services equity owned by KLX Energy officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of KLX Energy, including its current ownership diagnostics.
The performance of KLX Energy Services in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence KLX Energy's stock prices. When investing in KLX Energy, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, KLX Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as KLX Energy carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

How important is KLX Energy's Liquidity

KLX Energy financial leverage refers to using borrowed capital as a funding source to finance KLX Energy Services ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KLX Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to KLX Energy's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of KLX Energy's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between KLX Energy's total debt and its cash.

How does KLX utilize its cash?

At present, KLX Energy's Stock Based Compensation is projected to increase significantly based on the last few years of reporting. . To perform a cash flow analysis of KLX Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash KLX Energy is receiving and how much cash it distributes out in a given period. The KLX Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

KLX Energy Gross Profit

KLX Energy Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing KLX Energy previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show KLX Energy Gross Profit growth over the last 10 years. Please check KLX Energy's gross profit and other fundamental indicators for more details.

Details

KLX Energy Services holds a total of 8.4 Million outstanding shares. KLX Energy Services holds noticeable amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Ownership Breakdown

Retail Investors
31.75%		Insiders
39.06%		Institutions
29.19%
Retail Investors31.75
Insiders39.06
Institutions29.19

KLX Energy has a small chance to finish above $8.08 in 2 months

Latest maximum drawdown is at 32.0. KLX Energy Services is displaying above-average volatility over the selected time horizon. Investors should scrutinize KLX Energy Services independently to ensure intended market timing strategies are aligned with expectations about KLX Energy volatility.

Our Takeaway on KLX Energy Investment

Although few other entities under the oil & gas equipment & services industry are still a bit expensive, KLX Energy may offer a potential longer-term growth to shareholders. The inconsistency in the assessment between current KLX Energy valuation and our trade advice on KLX Energy is due to the recent market swings and your selection of investing horizon. 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.

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Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of KLX Energy Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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