DCF Tool

CHX

ChampionX Corporation – Oil and Gas Field Machinery and Equipment Manufacturing
ChampionX (formerly known as Apergy Corporation) is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX's products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells.
Analysis Results
Intrinsic Value $46.06
Latest Price $28.29
Relative Value 39% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 23.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 319 294
2023 394 335
2024 486 382
2025 600 434
2026 741 495
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11800 million. This corresponds to a present value of 7240 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1940 million. Adding in the terminal value gives a total present value of 9180 million.

There are presently 199.0 million outstanding shares, so the intrinsic value per share is 46.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,460,900,000
Current Cash 251,678,000
Current Liabilities 802,325,000
Current Debt 26,850,000
Non-Cash Working Capital (NCWC) 433,747,000
Change in NCWC -34,967,000
EBIT 172,918,000
Tax Provision 38,445,000
Depreciation and Amortization 237,285,000
Capital Expenditure -84,464,000
Unlevered Free Cash Flow 247,232,474
Current Assets 1,265,845,000
Current Cash 201,421,000
Current Liabilities 622,560,000
Current Debt 26,850,000
Non-Cash Working Capital (NCWC) 468,714,000
Change in NCWC 205,400,000
EBIT -54,595,000
Tax Provision -20,396,000
Depreciation and Amortization 214,362,000
Capital Expenditure -45,163,000
Unlevered Free Cash Flow 320,004,000
Current Assets 493,440,000
Current Cash 35,290,000
Current Liabilities 199,681,000
Current Debt 4,845,000
Non-Cash Working Capital (NCWC) 263,314,000
Change in NCWC -23,169,000
EBIT 101,090,000
Tax Provision 6,226,000
Depreciation and Amortization 119,938,000
Capital Expenditure -39,780,000
Unlevered Free Cash Flow 147,444,959

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