Enerflex Ltd.
Long

EFX.TO — Swing Trade Breakdown

50
💰 EFX.TO — Swing Trade Breakdown

🏢 Company Snapshot
Enerflex Ltd. is a global energy infrastructure and natural gas compression company headquartered in Calgary. Recent strength comes from cost efficiencies and improving margins post-Exterran acquisition integration.

📊 Fundamentals

Metric EFX.TO Industry Avg Notes
P/E 12.4× 16–18× Trading at a discount — modest valuation.
P/B 0.9× 1.4× Undervalued relative to peers.
Debt/Equity 0.78 0.6–0.9 Moderate leverage, manageable post-acquisition.
ROE 8.2 % 10–12 % Slightly below industry but improving.
Dividend Yield 1.8 % 2 % Balanced between growth and income.

Summary: Fundamentally solid and undervalued, with improving profitability metrics and moderate leverage.

📈 Trends & Catalysts

Revenue growth: +14 % YoY (steady recovery from 2023 lows).

EPS trend: Rebounding — margin expansion visible in recent quarters.

Balance sheet: Debt stabilizing, FCF turning positive.

Catalysts: Gas infrastructure expansion, potential LNG Canada demand, global energy capex recovery.

Risks: Commodity exposure, integration execution, and sensitivity to natural gas prices.

🪙 Industry Overview

Weekly: ↓ 1.2 % | Monthly: ↑ 4.5 %

12-mo: Energy services outperform broader TSX (+18 %).

Sentiment: Bullish — oil & gas infrastructure remains in accumulation phase.

📐 Technicals

Price: ≈ 15.08 CAD

50-SMA: 14.07 CAD

RSI(2): 1.0 → Oversold bounce zone

Pattern: Strong uptrend with short-term pullback to dynamic support (20-SMA).

Support: 14.00 – 14.30

Resistance: 16.80 – 17.20

🎯 Trade Plan

Entry: 14.90 – 15.10

Stop: 14.00

Target: 17.00

R/R: ≈ 2.1×

Alternate: If breakdown < 14.00 → wait for RSI2 reset and reclaim above 15.0 for re-entry.

🧠 My Take
RSI2 oversold within a confirmed uptrend — classic pullback entry setup. Fundamentals remain solid, valuation attractive, and momentum likely to resume once selling pressure eases.

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