Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ChampionX Corporation (CHX)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$11.42 - $16.68$13.96
Multi-Stage$19.60 - $21.55$20.55
Blended Fair Value$17.26
Current Price$29.80
Upside-42.09%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.360.340.240.000.000.003.810.160.440.00
YoY Growth--8.54%42.52%0.00%0.00%0.00%-100.00%2,261.37%-62.98%0.00%0.00%
Dividend Yield--1.22%0.95%0.87%0.00%0.00%0.00%9.14%0.42%1.15%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)293.14
(-) Cash Dividends Paid (M)72.39
(=) Cash Retained (M)220.75
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)58.6336.6421.99
Cash Retained (M)220.75220.75220.75
(-) Cash Required (M)-58.63-36.64-21.99
(=) Excess Retained (M)162.12184.10198.76
(/) Shares Outstanding (M)193.49193.49193.49
(=) Excess Retained per Share0.840.951.03
LTM Dividend per Share0.370.370.37
(+) Excess Retained per Share0.840.951.03
(=) Adjusted Dividend1.211.331.40
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate-2.00%-1.00%0.00%
Fair Value$11.42$13.96$16.68
Upside / Downside-61.68%-53.16%-44.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)293.14290.21287.31284.43281.59278.77287.14
Payout Ratio24.70%37.76%50.82%63.88%76.94%90.00%92.50%
Projected Dividends (M)72.39109.57146.00181.69216.65250.90265.60

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.40%8.40%8.40%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)100.06101.08102.10
Year 2 PV (M)121.75124.25126.77
Year 3 PV (M)138.36142.63147.00
Year 4 PV (M)150.65156.90163.33
Year 5 PV (M)159.32167.61176.25
PV of Terminal Value (M)3,122.193,284.773,454.05
Equity Value (M)3,792.323,977.244,169.51
Shares Outstanding (M)193.49193.49193.49
Fair Value$19.60$20.55$21.55
Upside / Downside-34.23%-31.02%-27.69%

High-Yield Dividend Screener

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