Macroaxis Stories

Is Klx Energy (NASDAQ:KLXE) ready for a correction?

April 14, 2021  By Rifka Kats
Macroaxis Story
While many traders are getting carried away by overanalyzing energy space, it is reasonable to digest Klx Energy Services. We are going to cover the possibilities of making Klx Energy into your portfolio. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Klx Energy to give you a better outlook on taking a position in this stock.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

Klx Energy Services currently holds 243.6 M in liabilities with Debt to Equity (D/E) ratio of 3.94, implying Klx Energy greatly relies on financing operations through barrowing. The entity has a current ratio of 2.0, which is within standard range for the sector.
Our investment recommendation tool can cross-verify current analyst consensus on Klx Energy Services and to analyze the entity potential to grow in the current economic cycle.
We determine the current worth of KLX Energy Services using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of KLX Energy Services based exclusively on its fundamental and basic technical indicators. By analyzing KLX Energy's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of KLX Energy's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of KLX Energy. We calculate exposure to KLX Energy's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to KLX Energy's related companies.

KLX Energy Services Investment Alerts

KLX investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring KLX Energy Services performance across your portfolios.Please check all investment alerts for KLX

KLX Energy Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare KLX value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across KLX Energy competition to find correlations between indicators driving the intrinsic value of KLX.

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

The latest price surge of Klx Energy Services may raise some interest from shareholders. The stock closed today at a share price of 14.46 on 134,009 in trading volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in May. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.47. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Klx Energy Services partners.
 2018 2019 2020 2021 (projected)
Revenues USD495.3 M544 M625.6 M533.42 M
Revenues495.3 M544 M625.6 M533.42 M
Revenues USDRevenues

Margins Breakdown

Klx Energy profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Klx Energy itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Klx Energy profit margins.
EBITDA Margin(0.0261)
Gross Margin0.16
Profit Margin(0.22)
Klx Energy Average Assets is rather stable at the moment. Also, Klx Energy Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment.

Another 3 percent surge for Klx Energy

Latest sortino ratio is at 0.19.
As of the 14th of April 2021, Klx Energy secures the Downside Deviation of 5.12, mean deviation of 4.92, and Risk Adjusted Performance of 0.1477. 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 have analyzed and interpolated 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 some-what accurately, providing market reflects its recent price of 14.46 per share. Given that Klx Energy Services has jensen alpha of 0.9244, we recommend you to check Klx Energy's last-minute market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Klx Energy

Although 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. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Klx Energy as the current risk-reward utility is not appealing enough. 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

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. 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 Rifka Kats 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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