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  5. EFX: Peter and His Wonder Team I have been watching this stock for some time. [Enerflex Ltd.]
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Q: Peter and His Wonder Team
I have been watching this stock for some time.The 4thQ.
looks positive from my amateur perspective. Do you think it looks solid and would be a good buy at this price? Thanks for your professional analysis!
Asked by Ernest on February 29, 2024
5i Research Answer:

4Q revenue was $782M, 1.3% ahead of estimates. Revenue rose 13%. But a large net loss caused profit to miss estimates by a wide margin. Bookings fell 21%. Backlog is $1.5B. The loss reflects a goodwill impairment, and other than this the results look good. 25%+ earnings growth is expected into 2025. Leverage remains our main concern here; we would like to see a stronger balance sheet. But the stock is cheap, and has done well recently. We would give it an OK rating today. Not a strong buy, due to its small size and leverage.