Klx Energy Stock Story

KLXE -  USA Stock  

USD 3.09  0.41  11.71%

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 65.45 Million. The current year Invested Capital is expected to grow to about 496.6 M, whereas Earnings before Tax are forecasted to decline to (358 M). As many investors are getting excited about energy space, it is fair to digest Klx Energy Services. We will check if it is still possible for Klx Energy to minimize net losses this year. Here I will also expose some primary fundamental factors affecting Klx Energy's services, and outline how it will impact the outlook for investors this year.
Published over a month ago
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Is Klx Energy about to turn this around?
The company reported the previous year's revenue of 284.6 M. Net Loss for the year was (125.9 M) with loss before overhead, payroll, taxes, and interest of (34.6 M). About 57.0% of the company outstanding shares are owned by corporate insiders. Klx Energy Services recorded a loss per share of 16.96. The entity had not issued any dividends in recent years. The firm had 1-5 split on the 28th of July 2020.

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. Please check the breakdown between Klx Energy's total debt and its cash.

How Klx Energy utilizes its cash?

To perform a cash flow analysis of Klx Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Klx Energy is receiving and how much cash it distributes out in a given period. The Klx Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Klx Energy Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (64.9 Million)

Details

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Klx Energy has an asset utilization ratio of 48.65 percent. This indicates that the company is making $0.49 for each dollar of assets. An increasing asset utilization means that Klx Energy Services is more efficient with each dollar of assets it utilizes for everyday operations.

Over 3 percent surge for Klx Energy. What does it mean for shareholders?

The standard deviation is down to 6.52 as of today. 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.

Our Final Perspective on Klx Energy

Although some firms in the oil & gas equipment & services industry are either recovering or due for a correction, Klx Energy may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Klx Energy as the current risk-reward utility is not appealing enough. 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.

Editorial Staff

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 Ellen Johnson 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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