MeritValue

KLX Energy Services Holdings, Inc.

KLXEdata completeness 100%10 fiscal years on file
The thesis, from the filings

KLX Energy Services Holdings, Inc. earns about -5% on invested capital, but has diluted owners by 115% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$436.1M1$781.6M2$888.4M3$709.3M4$636.6M4
Net income−$93.8M5−$3.1M6$19.2M7−$53M8−$77.1M8
Operating cash flow−$55.6M9$15.7M10$115.6M11$54.2M12$7.5M12
Capital expenditure$11M13$35.6M14$57.1M15$65.1M16$49.1M16
Free cash flow (derived)−$66.6M9−$19.9M10$58.5M11−$10.9M12−$41.6M12
Total debt$549.6M17$566.8M18$568.6M19$572.1M20$518.5M20
Cash & equivalents$28M21$57.4M22$112.5M23$91.6M24$5.7M24
Diluted shares8.7M11.3M15.7M16.2M18.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
−$39.68
your share of equity
Profit it earned you last year
−$41.23
Free cash flow it threw off
−$22.25
Debt you’d be carrying
$277.27

10 shares is a claim on −$39.68 of net worth that earned you −$41.23 and generated −$22.25 of cash last year, against $277.27 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-5% avg · 5y
FY21 -16%FY22 5%FY23 10%FY24 -9%FY25 -14%

It earned an average -5% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+115% shares · 5y

Share count is up 115% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-12-31 · accession 0001738827-23-000014 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-12-31 · accession 0001738827-24-000038 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K · period ending 2023-12-31 · accession 0001738827-25-000041 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2024-12-31 · accession 0001738827-26-000013 (CashAndCashEquivalentsAtCarryingValue)