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KLX Energy Services - AI Stock Analysis

Analysis generated December 6, 2024

KLX Energy Services is a diversified oilfield services company offering a broad range of services and products to the major oil and gas producing regions of the United States. The company provides solutions for the entire well-life cycle, delivering value-added expertise and customized technology solutions. KLX Energy Services operates in three segments: Northwest, Southwest, and Rocky Mountains. The company has established a strong market presence and is known for its focus on quality, safety, and customer-centric approaches.

Fundamental Analysis

The revenue for KLX Energy Services in the last quarter was $189 million. This is an increase of 4.83% compared to the quarter before, which signals positive growth. However, when compared to the same quarter last year, revenue saw a decrease of 10.64%, raising some concerns about the year-over-year performance.

Net income for the last quarter was $8.2 million, representing a decrease of 2.50% from the previous quarter and a significant year-over-year drop of 207.89%. This substantial decline could indicate underlying issues with profitability and cost management.

EBITDA for the last quarter was $1.6 million, which marks an impressive increase of 84.91% compared to the previous quarter. However, compared to the same quarter last year, EBITDA declined by 107.62%. This mixed picture suggests that while there are improvements in the short term, long-term challenges remain.

The current Price-to-Earnings (P/E) ratio is 4.59. A low P/E ratio can be an indicator of undervaluation, offering a potentially bullish outlook for the stock. However, it is essential to scrutinize other factors to confirm this perspective.

Technical Analysis

Today's stock price for KLX Energy Services is $4.93, which shows a decrease of 6.81% over the past month. This short-term downtrend could be alarming for traders. Over the long term, the stock has seen a more significant decline, decreasing by 47.10% compared to a year ago.

The trend for KLX Energy Services stock is bearish. The current 10-day Simple Moving Average (SMA10) is $5.71, lower than the previous SMA10 of $5.81, indicating a potential downward trend. The Relative Strength Index (RSI) stands at 85.8, suggesting that the stock is in an overbought condition and may face more selling pressure.

Alternative Data Analysis

In terms of job postings and employee sentiment, KLX Energy Services has 46 open positions, which have decreased by 22% in recent months. This reduction might indicate a strategic move to improve margins or cut costs, which isn't ideal for a growing company. Employee sentiment is reported to be neutral.

On the customer acquisition front, KLX Energy Services has an estimated 3,000 visitors to their website, with the number of visitors increasing by 200% in the last couple of months. This is a bullish indicator, suggesting potential growth in customer interest and engagement.

Lastly, according to AltIndex's AI score – which evaluates a company's stock price based on a combination of fundamental, technical, and alternative data analysis – KLX Energy Services has a score of 54, signaling a hold recommendation.

Conclusion and Recommendation

KLX Energy Services presents a mixed bag of signals for potential investors. The recent increase in revenue and EBITDA from the previous quarter are positive indicators. However, the significant year-over-year declines in these metrics and net income raise concerns about the company's long-term performance. The bearish trend in the stock price further complicates the picture.

Alternative data shows a positive shift in customer engagement, which might translate into future growth. However, the decrease in job postings suggests caution from the management regarding expenditures.

Given the combination of these factors, the current recommendation for KLX Energy Services is to hold. Long-term investors may want to wait for clearer signs of sustainable growth and profitability before making any commitments.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.