ChampionX Earnings: Seasonal Headwinds Weigh on Year-End Performance; Shares Fairly Valued

ChampionX closed out 2023 on solid footing and exited the year near the midpoint of management guidance for fourth-quarter performance. Revenue held flat sequentially and contracted about 4% year over year. The firmwide adjusted EBITDA margin also held flat sequentially but expanded nearly 300 basis points year over year. We’re maintaining our no moat rating and $32 fair value estimate following results. At the time of writing, shares trade at a roughly 10% discount to our fair value estimate.