The company currently holds 249.9
M in liabilities with Debt to Equity (D/E) ratio of 7.79, indicating Klx Energy may have difficulties to generate enough cash to satisfy its financial obligations. Klx Energy Services has a current ratio of 1.55, which is within standard range for the sector.
The company secures a Beta (Market Risk) of 2.2129, which conveys a somewhat significant risk relative to the market. Let's try to break down what Klx Energy's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Klx Energy will likely underperform. Even though it is essential to pay attention to
Klx Energy Services price patterns, it is always good to be careful when utilizing equity historical
price patterns. Our philosophy towards estimating any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Klx Energy exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Klx Energy Services has an expected return of -0.54%. Please be advised to verify Klx Energy Services
downside variance, as well as the
relationship between the accumulation distribution and
market facilitation index to decide if
Klx Energy Services performance from the past will be repeated at some point in the near future.
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.
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.
The big decline in price over the last few months for Klx Energy Servicesmay raise some interest from shareholders. The stock closed today at a share price of
6.12 on
23,251 in trading volume. The company executives failed to add value to investors and positioning the firm supply of money to exploit market volatility in
August. However, diversifying your holdings with Klx Energy or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.72. 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) |
Current Assets | 308.3 M | 228.5 M | 150.7 M | 173.57 M | Total Assets | 672.8 M | 623.4 M | 362.7 M | 438.42 M |
Will Klx Energy latest surge continue?
The information ratio is down to -0.15 as of today. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Klx Energy's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Klx Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Klx Energy
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. In closing, as of the 9th of September 2021, we believe that at this point, Klx Energy is relatively risky with
average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our final 90 days 'Buy-Sell' recommendation on the firm is
Cautious Hold.
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Try AI Portfolio ArchitectVlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of KLX Energy Services. Please refer to our
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