Enerflex (TSX:EFX) GF Value Rank : 8 (As of May. 01, 2024)

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What is Enerflex GF Value Rank?

Enerflex has the GF Value Rank of 8.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Enerflex's GF Value Rank

For the Oil & Gas Equipment & Services subindustry, Enerflex's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Enerflex's GF Value Rank Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Enerflex's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Enerflex's GF Value Rank falls into.

Enerflex GF Value Rank Related Terms

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Enerflex (TSX:EFX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Enerflex Ltd (TSX:EFX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

EFXT:USA 7EX:Germany

Address

1331 MacLeod Trail SE, Suite 904, Calgary, AB, CAN, T2G 0K3

Website

https://www.enerflex.com

Enerflex Ltd engineers, designs, manufactures and provides aftermarket support for equipment, systems, and turnkey facilities used to process and move natural gas from the wellhead to the pipeline. The company's focus is gas compression, where it offers a range of applications and gas inlet streams, from low-horsepower/low-pressure applications such as coal seam gas and solution gas vapor recovery units to high-horsepower, centralized field, or processing plant compression. Enerflex operates three business segments: the USA, the Rest of the World, and Canada. Each regional business segment has three main product lines: Engineered Systems, After?market Service, and Energy Infrastructure. The USA segment earns the majority of the revenue.