Q: I've only owned Enerflex a very short time, but it's already appreciated well. Could you please comment on your outlook of holding this 3-5 years. Also, do you see them increasing their dividend in the coming year?
5i Research Answer:
EFX increased the dividend in November, and with yield only at 0.54% we think there is certainly room for another hike this year. The stock is up 49% YTD. The sector is doing well and EPS is expected to rise in the 70% range this year. The balance sheet is a bit leveraged but the valuation is OK at 16x earnings (considering the high growth rate). We would be quite comfortable holding this for 1 to 3 years.