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How much will Klx Energy owe in April?

March 4, 2022  By Vlad Skutelnik
Macroaxis Story
The upcoming quarterly report is expected on the 13th of April 2022. The stock experiences an active upward rally. Klx Energy Average Equity is projected to decrease significantly based on the last few years of reporting. The past year's Average Equity was at 58.91 Million. The current year Enterprise Value is expected to grow to about 246.7 M, whereas Earnings before Tax are forecasted to decline to (411.7 M). As many investors are getting excited about energy space, it is fair to digest Klx Energy Services as an investment option. I will address a few possible reasons shareholders do not currently respect this stock.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The company currently holds 284.7 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 1.57, which is within standard range for the sector. The company has Profit Margin (PM) of (25.91) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (17.2) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.17.
KLX Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of KLX Energy, including all of KLX Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of KLX Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall KLX Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding KLX Total Liabilities

KLX Energy Services liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. KLX Energy Services has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on KLX Energy balance sheet include debt obligations and money owed to different KLX Energy vendors, workers, and loan providers. Below is the chart of KLX short long-term liabilities accounts currently reported on its balance sheet.
You can use KLX Energy Services financial leverage analysis tool to get a better grip on understanding its financial position

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.

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 entity reported the previous year's revenue of 428.4 M. Net Loss for the year was (111 M) with loss before overhead, payroll, taxes, and interest of (34.6 M).

Liabilities Breakdown

81.9 M
Current Liabilities
239.8 M
Long-Term Liabilities
Total Liabilities321.69 Million
Current Liabilities81.92 Million
Long-Term Liabilities239.77 Million

Are Klx Energy technical ratios showing a reversion?

Klx Energy latest risk adjusted performance ascents over 0.22. 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.

Klx Energy Implied Volatility

Klx Energy's implied volatility exposes the market's sentiment of Klx Energy Services stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Klx Energy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Klx Energy stock will not fluctuate a lot when Klx Energy's options are near their expiration.

Our Conclusion on Klx Energy

Although other companies within the 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 shareholders. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Klx Energy nor drop 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

Vlad 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 Terms of Use for any information regarding our disclosure principles.

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