ChampionX Corporation: The Slow Momentum Is Due For A Pickup

Jun. 16, 2022 2:47 AM ETChampionX Corporation (CHX) StockCHX
Badsha Chowdhury
1.27K Followers

Summary

  • A secular growth in North America drilling market and international market opportunities will drive ChampionX Corporation's topline growth in the near term.
  • Price hikes and additional revenues from Ecolab will boost its operating margin.
  • Cash flows turned negative in Q1, but robust liquidity ensures that the company has limited financial risks.
  • It initiated a share repurchase program in Q1, which can hold the stock price steady.

Oil worker in orange uniform and helmet on of background the pump jack and blue sky.

anatoliy_gleb/iStock via Getty Images

Value Drivers Vs. Cash Flow Woes

ChampionX Corporation (NASDAQ:CHX) benefits from Production Chemicals' business growth, especially after the Ecolab merger. The adoption of its modular fit-for-purpose technologies has accelerated among the operators. Improved productivity in the Chemical Technologies

This article was written by

1.27K Followers
I have more than 14 years of experience in analyzing and writing on stocks. I write on both long and short sides in an unbiased manner. I have been covering the energy sectors for the past 7 years, with the primary focus on the oilfield equipment services sector. I also cover the Industrial Supply industry. I occasionally co-author with Seeking Alpha contributor Thomas Prescott.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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