Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 8, 2019

Article Excerpt

ENERFLEX LTD., $19.20, symbol EFX on Toronto, serves natural gas producers by leasing and selling them equipment. That includes compression and processing systems, refrigeration gear and power generators. The company’s revenue rose 7.7% in the quarter ended December 31, 2018, to $466.8 million from $450.1 million a year earlier. Stronger gas production in the U.S. offset weakness in Canada. Earnings jumped 21.7%, to $32.5 million, or $0.37 a share, from $26.7 million, or $0.30. Enerflex’s balance sheet is sound: its debt of $444.7 million is a manageable 26% of its market cap, and it holds $326.9 million in cash. New orders remain very strong, especially from U.S. and international customers, who have begun to increase their gas production. On December 31, 2018, Enerflex’s order backlog was $1.42 billion—up 111.8% from $670.8 million at the end of 2017. The company’s outlook is strong, based on continued strength in the U.S. industry, early signs of a recovery for Canadian gas producers, and multiple large opportunities internationally…

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