CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD
Taking everything into account, CEU scores 7 out of 10 in our fundamental rating. CEU was compared to 28 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. CEU may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make CEU suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year CEU was profitable.
CEU had a positive operating cash flow in the past year.
Of the past 5 years CEU 4 years were profitable.
The reported operating cash flow has been mixed in the past 5 years: CEU reported negative operating cash flow in multiple years.
1.2 Ratios
CEU has a Return On Assets of 13.46%. This is amongst the best in the industry. CEU outperforms 82.14% of its industry peers.
The Return On Equity of CEU (26.59%) is better than 92.86% of its industry peers.
CEU has a Return On Invested Capital of 17.81%. This is amongst the best in the industry. CEU outperforms 89.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CEU is in line with the industry average of 10.77%.
The 3 year average ROIC (11.18%) for CEU is below the current ROIC(17.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 26.59% | ||
| ROIC | 17.81% |
ROA(3y)7.52%
ROA(5y)-0.19%
ROE(3y)16.46%
ROE(5y)0.98%
ROIC(3y)11.18%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.62%, CEU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CEU has grown nicely.
CEU has a better Operating Margin (11.33%) than 71.43% of its industry peers.
CEU's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 24.34%, CEU perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Gross Margin of CEU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.33% | ||
| PM (TTM) | 8.62% | ||
| GM | 24.34% |
OM growth 3YN/A
OM growth 5Y11.52%
PM growth 3YN/A
PM growth 5Y13.75%
GM growth 3Y7.61%
GM growth 5Y-0.19%
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.
The number of shares outstanding for CEU has been reduced compared to 1 year ago.
CEU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CEU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.02 indicates that CEU is not in any danger for bankruptcy at the moment.
The Altman-Z score of CEU (4.02) is better than 85.71% of its industry peers.
The Debt to FCF ratio of CEU is 2.22, which is a good value as it means it would take CEU, 2.22 years of fcf income to pay off all of its debts.
CEU has a better Debt to FCF ratio (2.22) than 78.57% of its industry peers.
CEU has a Debt/Equity ratio of 0.53. This is a neutral value indicating CEU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, CEU is in line with its industry, outperforming 42.86% of the companies in the same industry.
Although CEU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 4.02 |
ROIC/WACC2.11
WACC8.45%
2.3 Liquidity
CEU has a Current Ratio of 2.82. This indicates that CEU is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.82, CEU belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
CEU has a Quick Ratio of 1.52. This is a normal value and indicates that CEU is financially healthy and should not expect problems in meeting its short term obligations.
CEU has a better Quick ratio (1.52) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.21% over the past year.
Measured over the past years, CEU shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.65% on average per year.
The Revenue has been growing slightly by 5.94% in the past year.
The Revenue has been growing by 11.22% on average over the past years. This is quite good.
EPS 1Y (TTM)48.21%
EPS 3Y82.72%
EPS 5Y27.65%
EPS Q2Q%33.33%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%13.05%
3.2 Future
CEU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.97% yearly.
Based on estimates for the next years, CEU will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y39.08%
EPS Next 2Y22.56%
EPS Next 3Y18.54%
EPS Next 5Y19.97%
Revenue Next Year9.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.14%
Revenue Next 5Y6.48%
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 9.11, the valuation of CEU can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CEU indicates a somewhat cheap valuation: CEU is cheaper than 60.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.75. CEU is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.25, the valuation of CEU can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEU indicates a somewhat cheap valuation: CEU is cheaper than 64.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. CEU is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CEU indicates a slightly more expensive valuation: CEU is more expensive than 64.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CEU is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | 6.23 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CEU has a very decent profitability rating, which may justify a higher PE ratio.
CEU's earnings are expected to grow with 18.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.23
PEG (5Y)0.33
EPS Next 2Y22.56%
EPS Next 3Y18.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, CEU has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 13.63, CEU pays a bit more dividend than its industry peers.
CEU's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
The dividend of CEU is nicely growing with an annual growth rate of 15.17%!
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)15.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
CEU pays out 13.11% of its income as dividend. This is a sustainable payout ratio.
The dividend of CEU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.11%
EPS Next 2Y22.56%
EPS Next 3Y18.54%
TSX:CEU (3/3/2025, 7:00:00 PM)
7.56
-0.44 (-5.5%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.26%
Inst Owner ChangeN/A
Ins Owners3.47%
Ins Owner ChangeN/A
Market Cap1.70B
Analysts78.33
Price Target11.51 (52.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.09
Dividend Growth(5Y)15.17%
DP13.11%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.39%
Min EPS beat(2)4.22%
Max EPS beat(2)36.57%
EPS beat(4)4
Avg EPS beat(4)29.98%
Min EPS beat(4)4.22%
Max EPS beat(4)44.13%
EPS beat(8)7
Avg EPS beat(8)20.03%
EPS beat(12)10
Avg EPS beat(12)23.51%
EPS beat(16)14
Avg EPS beat(16)161.93%
Revenue beat(2)2
Avg Revenue beat(2)1.64%
Min Revenue beat(2)0.98%
Max Revenue beat(2)2.29%
Revenue beat(4)4
Avg Revenue beat(4)2.33%
Min Revenue beat(4)0.98%
Max Revenue beat(4)4.17%
Revenue beat(8)6
Avg Revenue beat(8)1.54%
Revenue beat(12)10
Avg Revenue beat(12)3.62%
Revenue beat(16)14
Avg Revenue beat(16)4.64%
PT rev (1m)0%
PT rev (3m)6.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 8.25 | ||
| P/S | 0.74 | ||
| P/FCF | 8.84 | ||
| P/OCF | 6.04 | ||
| P/B | 2.28 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)0.83
EY10.98%
EPS(NY)0.92
Fwd EY12.12%
FCF(TTM)0.86
FCFY11.31%
OCF(TTM)1.25
OCFY16.55%
SpS10.22
BVpS3.31
TBVpS2.93
PEG (NY)0.23
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 26.59% | ||
| ROCE | 22.74% | ||
| ROIC | 17.81% | ||
| ROICexc | 17.81% | ||
| ROICexgc | 19.25% | ||
| OM | 11.33% | ||
| PM (TTM) | 8.62% | ||
| GM | 24.34% | ||
| FCFM | 8.36% |
ROA(3y)7.52%
ROA(5y)-0.19%
ROE(3y)16.46%
ROE(5y)0.98%
ROIC(3y)11.18%
ROIC(5y)N/A
ROICexc(3y)11.18%
ROICexc(5y)N/A
ROICexgc(3y)12.12%
ROICexgc(5y)N/A
ROCE(3y)14.27%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y18.65%
ROICexc growth 3YN/A
ROICexc growth 5Y26.22%
OM growth 3YN/A
OM growth 5Y11.52%
PM growth 3YN/A
PM growth 5Y13.75%
GM growth 3Y7.61%
GM growth 5Y-0.19%
F-Score7
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 110.53% | ||
| Cap/Sales | 3.88% | ||
| Interest Coverage | 6.28 | ||
| Cash Conversion | 82.48% | ||
| Profit Quality | 97.01% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 4.02 |
F-Score7
WACC8.45%
ROIC/WACC2.11
Cap/Depr(3y)76.12%
Cap/Depr(5y)68.46%
Cap/Sales(3y)3.03%
Cap/Sales(5y)3.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.21%
EPS 3Y82.72%
EPS 5Y27.65%
EPS Q2Q%33.33%
EPS Next Y39.08%
EPS Next 2Y22.56%
EPS Next 3Y18.54%
EPS Next 5Y19.97%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%13.05%
Revenue Next Year9.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.14%
Revenue Next 5Y6.48%
EBIT growth 1Y20.56%
EBIT growth 3YN/A
EBIT growth 5Y24.04%
EBIT Next Year79.57%
EBIT Next 3Y25.26%
EBIT Next 5Y17.54%
FCF growth 1Y247.35%
FCF growth 3Y19.72%
FCF growth 5YN/A
OCF growth 1Y447.69%
OCF growth 3Y24.42%
OCF growth 5Y31.21%