CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CEU • CA15713J1049
14.2 CAD
-0.05 (-0.35%)
Last: Jan 30, 2026, 07:00 PM
Overall CEU gets a fundamental rating of 6 out of 10. We evaluated CEU against 27 industry peers in the Energy Equipment & Services industry. CEU gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, CEU is valued expensive at the moment. With these ratings, CEU could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- In the past year CEU was profitable.
- In the past year CEU had a positive cash flow from operations.
- CEU had positive earnings in 4 of the past 5 years.
- In multiple years CEU reported negative operating cash flow during the last 5 years.
1.2 Ratios
- The Return On Assets of CEU (10.98%) is better than 85.19% of its industry peers.
- CEU has a Return On Equity of 22.06%. This is amongst the best in the industry. CEU outperforms 85.19% of its industry peers.
- CEU has a better Return On Invested Capital (16.80%) than 92.59% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CEU is significantly below the industry average of 169.81%.
- The last Return On Invested Capital (16.80%) for CEU is above the 3 year average (15.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.98% | ||
| ROE | 22.06% | ||
| ROIC | 16.8% |
ROA(3y)10.13%
ROA(5y)1.8%
ROE(3y)20.87%
ROE(5y)4.79%
ROIC(3y)15.43%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of CEU (7.32%) is better than 74.07% of its industry peers.
- CEU's Profit Margin has improved in the last couple of years.
- The Operating Margin of CEU (10.95%) is better than 74.07% of its industry peers.
- CEU's Operating Margin has improved in the last couple of years.
- CEU has a Gross Margin (23.68%) which is comparable to the rest of the industry.
- CEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.95% | ||
| PM (TTM) | 7.32% | ||
| GM | 23.68% |
OM growth 3Y25.33%
OM growth 5Y14.6%
PM growth 3Y24.88%
PM growth 5Y28.07%
GM growth 3Y4.59%
GM growth 5Y2.9%
2. Health
2.1 Basic Checks
- CEU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- CEU has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CEU has been reduced compared to 5 years ago.
- Compared to 1 year ago, CEU has an improved debt to assets ratio.
2.2 Solvency
- CEU has an Altman-Z score of 4.88. This indicates that CEU is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.88, CEU belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- CEU has a debt to FCF ratio of 3.64. This is a good value and a sign of high solvency as CEU would need 3.64 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.64, CEU is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
- CEU has a Debt/Equity ratio of 0.57. This is a neutral value indicating CEU is somewhat dependend on debt financing.
- CEU's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. CEU outperforms 40.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.64 | ||
| Altman-Z | 4.88 |
ROIC/WACC2.08
WACC8.06%
2.3 Liquidity
- A Current Ratio of 3.02 indicates that CEU has no problem at all paying its short term obligations.
- The Current ratio of CEU (3.02) is better than 92.59% of its industry peers.
- A Quick Ratio of 1.74 indicates that CEU should not have too much problems paying its short term obligations.
- CEU's Quick ratio of 1.74 is fine compared to the rest of the industry. CEU outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- CEU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.02%.
- Measured over the past years, CEU shows a very strong growth in Earnings Per Share. The EPS has been growing by 49.08% on average per year.
- The Revenue has been growing slightly by 5.79% in the past year.
- The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)-6.02%
EPS 3Y62.15%
EPS 5Y49.08%
EPS Q2Q%-10%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y25.3%
Revenue growth 5Y13%
Sales Q2Q%2.75%
3.2 Future
- Based on estimates for the next years, CEU will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.19% on average per year.
- CEU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.62% yearly.
EPS Next Y3.49%
EPS Next 2Y10.94%
EPS Next 3Y11.98%
EPS Next 5Y13.19%
Revenue Next Year4.89%
Revenue Next 2Y5.7%
Revenue Next 3Y5.83%
Revenue Next 5Y5.62%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.21, CEU is valued on the expensive side.
- CEU's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of CEU to the average of the S&P500 Index (28.32), we can say CEU is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.24, which indicates a correct valuation of CEU.
- CEU's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. CEU is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 14.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CEU is valued expensively inside the industry as 81.48% of the companies are valued cheaper.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CEU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.12 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CEU does not grow enough to justify the current Price/Earnings ratio.
- CEU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.21
PEG (5Y)0.37
EPS Next 2Y10.94%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.19%, CEU has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.16, CEU pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.83, CEU is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
- On average, the dividend of CEU grows each year by 14.06%, which is quite nice.
- CEU has been paying a dividend for at least 10 years, so it has a reliable track record.
- CEU has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)14.06%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- CEU pays out 18.25% of its income as dividend. This is a sustainable payout ratio.
- CEU's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.25%
EPS Next 2Y10.94%
EPS Next 3Y11.98%
CES ENERGY SOLUTIONS CORP / CEU.CA FAQ
What is the fundamental rating for CEU stock?
ChartMill assigns a fundamental rating of 6 / 10 to CEU.CA.
What is the valuation status of CES ENERGY SOLUTIONS CORP (CEU.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to CES ENERGY SOLUTIONS CORP (CEU.CA). This can be considered as Overvalued.
How profitable is CES ENERGY SOLUTIONS CORP (CEU.CA) stock?
CES ENERGY SOLUTIONS CORP (CEU.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of CES ENERGY SOLUTIONS CORP (CEU.CA) stock?
The Price/Earnings (PE) ratio for CES ENERGY SOLUTIONS CORP (CEU.CA) is 18.21 and the Price/Book (PB) ratio is 3.75.
What is the earnings growth outlook for CES ENERGY SOLUTIONS CORP?
The Earnings per Share (EPS) of CES ENERGY SOLUTIONS CORP (CEU.CA) is expected to grow by 3.49% in the next year.