What is KLX Energy Services Holdings Predictability Rank?
Not Rated
Warren Buffett said many times that the companies he likes are:
1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.
It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.
GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.
KLX Energy Services Holdings Predictability Rank Calculation
In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.
Our study may be subject to these biases and assumptions:
Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.
The correlation between business predictability and investment returns of a company is showed below.
Correlation Between Business Predictability and Investment Returns
| Predictables | Non-Predictable | All stocks |
|---|
| Total Number of stocks | 570 | 1833 | 2403 |
| Total Lost Money | 61 | 830 | 891 |
| Total Lost More Than 50% | 18 | 412 | 430 |
| Total Lost More Than 90% | 4 | 86 | 90 |
| Average Gain | 260.6% | 100.0% | 138.1% |
| Median Gain | 150.0% | 13.0% | 39.0% |
| Maximum Gain | 2852.0% | 11483.0% | 11483.0% |
| Maximum Loss | -100.0% | -100.0% | -100.0% |
| Annualized Average Gain | 12.7% | 6.7% | 8.4% |
| Annualized Median Gain | 8.9% | 1.1% | 3.1% |
For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.
| Predictability Rank | 5-Star | 4.5-Star | 4-Star | 3.5-Star | 3-Star | 2.5-Star | 2-Star | 1-Star (non-predictable) | Average among all |
|---|
| % Out of All 2403 Stocks |
3.3% |
2.9% |
3.7% |
3.3% |
3.3% |
3.7% |
3.3% |
76.3% |
100% |
| % that are in Loss (10y) |
3% |
10% |
8% |
9% |
11% |
18% |
16% |
45% |
37% |
| Average Gain (10y) |
364.6% |
330.9% |
278.0% |
235.1% |
243.5% |
227.8% |
154.8% |
100.0% |
138.1% |
| Median Gain (10y) |
238.5% |
193.5% |
171.0% |
159.0% |
132.5% |
113.5% |
87.0% |
13.0% |
39.0% |
| Maximum Gainer |
2228.0% |
2547.0% |
2452.0% |
2852.0% |
2432.0% |
1892.0% |
1807.0% |
11483.0% |
11483.0% |
| Maximum Loser |
-82.0% |
-53.0% |
-67.0% |
-100.0% |
-83.0% |
-100.0% |
-78.0% |
-100.0% |
-100.0% |
| Annualized Average Gain |
15.4% |
14.6% |
13.2% |
12.0% |
12.2% |
11.7% |
9.1% |
6.7% |
8.4% |
| Annualized Median Gain |
12.1% |
10.6% |
9.8% |
9.3% |
8.2% |
7.3% |
6.0% |
1.1% |
3.1% |
For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank
Also read:
Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety
KLX Energy Services Holdings (KLX Energy Services Holdings) Business Description
Traded in Other Exchanges
Address
3040 Post Oak Boulevard, 15th Floor, Houston, TX, USA, 77056
KLX Energy Services Holdings Inc is a provider of completion, intervention and production services and products to the onshore oil and gas producing regions of the United States. It serves the companies engaged in the exploration and development of North American onshore conventional and unconventional oil and natural gas reserves. Its products and services offerings include surface facilities and equipment, pressure control services, wireline services, fishing services, and engineered products. The company's segments include Southwest; Rocky Mountains and Northeast/Mid-Con region.
Executives
| Christopher J. Baker |
officer: See Remarks |
C/O QUINTANA ENERGY SERVICES, 1415 LOUISIANA STREET, SUITE 2900, HOUSTON TX 77002 |
| Keefer Mcgovern Lehner |
officer: See Remarks |
C/O QUINTANA ENERGY SERVICES, 1415 LOUISIANA STREET, SUITE 2400, HOUSTON TX 77002 |
| Geoffrey C Stanford |
officer: Chief Accouting Officer |
4400 POST OAK PARKWAY, SUITE 1000, HOUSTON TX 77027 |
| Max Bouthillette |
officer: See Remarks |
C/O QUINTANA ENERGY SERVICES, 1415 LOUISIANA STREET, SUITE 2400, HOUSTON TX 77002 |
| Denham Capital Management Gp Llc |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Denham Capital Management Lp |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Denham Iv Continuation Fund Gp Lp |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Stuart D Porter |
10 percent owner |
200 CLARENDON ST, 25TH FLOOR, BOSTON MA 02116 |
| Denham Iv Continuation Gp Llc |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Greene's Investment Holdings Llc |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Denham Iv Continuation Fund Lp |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Greene's Holding Corp |
10 percent owner |
185 DARTMOUTH STREET, BOSTON MA 02116 |
| Robertson Corbin J Jr |
director, 10 percent owner, other: Member of 10% owner group |
601 JEFFERSON STE 3600, HOUSTON TX 77002 |
| John T Whates |
director |
1400 CORPORATE CENTER WAY, WELLINGTON FL 33414 |
| John T Collins |
director |
THE COLLINS GROUP, 60 STATE ST, SUITE 700, BOSTON MA 02109 |
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