CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to CEU. CEU was compared to 28 industry peers in the Energy Equipment & Services industry. CEU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CEU scores decently on growth, while it is valued quite cheap. This could make an interesting combination. CEU also has an excellent dividend rating. These ratings would make CEU suitable for value and dividend and quality investing!
1. Profitability
1.1 Basic Checks
CEU had positive earnings in the past year.
In the past year CEU had a positive cash flow from operations.
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
The Return On Assets of CEU (11.33%) is better than 82.14% of its industry peers.
CEU has a Return On Equity of 21.79%. This is amongst the best in the industry. CEU outperforms 82.14% of its industry peers.
CEU has a better Return On Invested Capital (17.30%) than 92.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CEU is above the industry average of 10.68%.
The 3 year average ROIC (15.43%) for CEU is below the current ROIC(17.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 21.79% | ||
| ROIC | 17.3% |
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
CEU has a better Profit Margin (7.53%) than 64.29% of its industry peers.
CEU's Profit Margin has improved in the last couple of years.
CEU's Operating Margin of 11.17% is fine compared to the rest of the industry. CEU outperforms 67.86% of its industry peers.
In the last couple of years the Operating Margin of CEU has grown nicely.
With a Gross Margin value of 24.25%, 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 grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.17% | ||
| PM (TTM) | 7.53% | ||
| GM | 24.25% |
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.
Compared to 5 years ago, CEU has less shares outstanding
CEU has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.78 indicates that CEU is not in any danger for bankruptcy at the moment.
CEU has a better Altman-Z score (3.78) than 85.71% of its industry peers.
The Debt to FCF ratio of CEU is 2.63, which is a good value as it means it would take CEU, 2.63 years of fcf income to pay off all of its debts.
CEU has a Debt to FCF ratio of 2.63. This is in the better half of the industry: CEU outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that CEU is somewhat dependend on debt financing.
CEU has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.78 |
ROIC/WACC2.32
WACC7.46%
2.3 Liquidity
CEU has a Current Ratio of 2.92. This indicates that CEU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CEU (2.92) is better than 92.86% of its industry peers.
A Quick Ratio of 1.60 indicates that CEU should not have too much problems paying its short term obligations.
The Quick ratio of CEU (1.60) is better than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.45% over the past year.
The Earnings Per Share has been growing by 49.00% on average over the past years. This is a very strong growth
CEU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.26%.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)8.45%
EPS 3Y62.17%
EPS 5Y49%
EPS Q2Q%-17.39%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y25.3%
Revenue growth 5Y13%
Sales Q2Q%7.45%
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 18.04% yearly.
The Revenue is expected to grow by 2.34% on average over the next years.
EPS Next Y9.03%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
EPS Next 5Y18.04%
Revenue Next Year4.22%
Revenue Next 2Y3.79%
Revenue Next 3Y4.21%
Revenue Next 5Y2.34%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
CEU is valuated reasonably with a Price/Earnings ratio of 8.78.
CEU's Price/Earnings ratio is a bit cheaper when compared to the industry. CEU is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.28, CEU is valued rather cheaply.
CEU is valuated cheaply with a Price/Forward Earnings ratio of 6.73.
67.86% of the companies in the same industry are more expensive than CEU, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CEU to the average of the S&P500 Index (21.76), we can say CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 6.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CEU.
CEU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | 5.51 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
CEU's earnings are expected to grow with 14.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)0.18
EPS Next 2Y8.89%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
CEU has a Yearly Dividend Yield of 2.56%. Purely for dividend investing, there may be better candidates out there.
CEU's Dividend Yield is rather good when compared to the industry average which is at 17.16. CEU pays more dividend than 82.14% of the companies in the same industry.
CEU's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 15.36% of its income as dividend. This is a sustainable payout ratio.
CEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.36%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
TSX:CEU (7/2/2025, 7:00:00 PM)
6.76
+0.13 (+1.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.08%
Inst Owner ChangeN/A
Ins Owners3.12%
Ins Owner ChangeN/A
Market Cap1.52B
Analysts80
Price Target9.75 (44.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.12
Dividend Growth(5Y)14.06%
DP15.36%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.78%
Min EPS beat(2)-15.45%
Max EPS beat(2)-14.11%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-15.45%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)14.37%
EPS beat(12)8
Avg EPS beat(12)14.25%
EPS beat(16)12
Avg EPS beat(16)119.86%
Revenue beat(2)2
Avg Revenue beat(2)0.92%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.67%
Revenue beat(4)4
Avg Revenue beat(4)1.28%
Min Revenue beat(4)0.17%
Max Revenue beat(4)2.29%
Revenue beat(8)7
Avg Revenue beat(8)1.22%
Revenue beat(12)10
Avg Revenue beat(12)2.66%
Revenue beat(16)14
Avg Revenue beat(16)3.85%
PT rev (1m)-7.55%
PT rev (3m)-15.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.79%
EPS NY rev (3m)-0.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.78 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.63 | ||
| P/FCF | 8.74 | ||
| P/OCF | 5.44 | ||
| P/B | 1.83 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)0.77
EY11.39%
EPS(NY)1
Fwd EY14.86%
FCF(TTM)0.77
FCFY11.44%
OCF(TTM)1.24
OCFY18.38%
SpS10.69
BVpS3.69
TBVpS3.28
PEG (NY)0.97
PEG (5Y)0.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.33% | ||
| ROE | 21.79% | ||
| ROCE | 21.29% | ||
| ROIC | 17.3% | ||
| ROICexc | 17.3% | ||
| ROICexgc | 18.67% | ||
| OM | 11.17% | ||
| PM (TTM) | 7.53% | ||
| GM | 24.25% | ||
| FCFM | 7.24% |
ROA(3y)10.13%
ROA(5y)1.8%
ROE(3y)20.87%
ROE(5y)4.79%
ROIC(3y)15.43%
ROIC(5y)N/A
ROICexc(3y)15.43%
ROICexc(5y)N/A
ROICexgc(3y)16.67%
ROICexgc(5y)N/A
ROCE(3y)18.99%
ROCE(5y)N/A
ROICexcg growth 3Y41.3%
ROICexcg growth 5Y18.11%
ROICexc growth 3Y42.21%
ROICexc growth 5Y25.93%
OM growth 3Y25.33%
OM growth 5Y14.6%
PM growth 3Y24.88%
PM growth 5Y28.07%
GM growth 3Y4.59%
GM growth 5Y2.9%
F-Score6
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 116.33% | ||
| Cap/Sales | 4.39% | ||
| Interest Coverage | 9.73 | ||
| Cash Conversion | 77.83% | ||
| Profit Quality | 96.09% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.78 |
F-Score6
WACC7.46%
ROIC/WACC2.32
Cap/Depr(3y)97.3%
Cap/Depr(5y)74.9%
Cap/Sales(3y)3.5%
Cap/Sales(5y)3.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.45%
EPS 3Y62.17%
EPS 5Y49%
EPS Q2Q%-17.39%
EPS Next Y9.03%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
EPS Next 5Y18.04%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y25.3%
Revenue growth 5Y13%
Sales Q2Q%7.45%
Revenue Next Year4.22%
Revenue Next 2Y3.79%
Revenue Next 3Y4.21%
Revenue Next 5Y2.34%
EBIT growth 1Y11.04%
EBIT growth 3Y57.05%
EBIT growth 5Y29.5%
EBIT Next Year34.17%
EBIT Next 3Y13.77%
EBIT Next 5Y9.19%
FCF growth 1Y567.91%
FCF growth 3YN/A
FCF growth 5Y10.43%
OCF growth 1Y236.11%
OCF growth 3YN/A
OCF growth 5Y10.22%