KLX Energy Services Holdings Inc. Common Stock (KLXE)

FairStock Score: 16/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and can withstand adversity. KLX Energy fails the first test. Revenue fell from $888.4 million in fiscal 2023 to $709.3 million in fiscal 2024 and $636.6 million in fiscal 2025, while net income swung from $19.2 million to -$53.0 million to -$77.1 million. That is not a moat; it is a cyclical contractor with little pricing power. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $167.3 million and a net loss of $8.4 million, or diluted EPS -$0.41. That loss is narrower than fiscal Q1 2026's -$24.0 million and fiscal Q2 2025's -$19.9 million, so operations may be stabilizing. But trailing free cash flow is -$1.9 million and FCF yield is -6.7%, so the company is not generating cash. FairStock's price-based metrics at the 2026-10-13 close of $1.34 show P/E -0.43 and EV/EBITDA 4.86. A low EV/EBITDA can look tempting, but with a FairStock Altman Z-Score of -1.99 and FairStock score of 16/100, balance-sheet risk is real. FairStock's Piotroski F-Score of 6/9 is respectable for a loss-maker, and beta of 0.71 suggests less volatility than the market, but that does not create safety. Peter Lynch would call this a turnaround because it lost money in the latest year after earlier profits. As Graham taught, a speculative turnaround is not the same as an undervalued safe asset. The stock may already discount much bad news, but without durable profits or positive cash flow, I see no margin of safety.

In plain English: KLX Energy Services provides drilling, completion, production and well intervention services and products to onshore oil and gas producers in the United States. The business has been shrinking and losing money, though the most recent reported quarter showed a smaller loss than earlier quarters. At $1.34, the stock is near its 52-week low; because profits are negative and cash flow is slightly negative, it looks like a risky turnaround rather than a plainly cheap bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer