Macroaxis Stories

Is Klx Energy Services well positioned for February economic uncertainties?

January 4, 2022  By Gabriel Shpitalnik
Macroaxis Story
While some millenniums are indifferent towards energy space, it makes sense to digest Klx Energy Services. We will try to explain if it is still possible for Klx Energy to generate above-average margins. Is the firm valuation justified? Here I will cover 2022 perspective on the current valuation of Klx Energy Services to give you a better outlook on taking a possible position in this stock.
Published over a year ago
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Reviewed by Rifka Kats

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. Klx Energy is OVERVALUED at 3.02 per share with modest projections ahead.
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 small dip in market price for the last few months may raise some interest from shareholders. The stock closed today at a share price of 4.27 on 516,682 in trading volume. The company directors and management did not add much value to Klx Energy Services investors in December. However, diversifying your holdings with Klx Energy or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 5.44. 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.

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(1.07)
Gross Margin(0.16)
Profit Margin(1.49)
Klx Energy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is rather stable at the moment. Moreover, Klx Energy Average Assets is rather stable at the moment.

Another 3 percent surge for Klx Energy

The potential upside is down to 7.03 as of today.
As of the 4th of January, Klx Energy secures the mean deviation of 3.87, and Risk Adjusted Performance of (0.045696). 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 4.27 per share. Given that Klx Energy Services has jensen alpha of (0.65), 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

When is the right time to buy or sell Klx Energy Services? Buying stocks such as Klx Energy isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Klx Energy nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been 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.

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Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik 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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