CES ENERGY SOLUTIONS CORP (CEU.CA)
CA15713J1049 - Common Stock
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. Both the health and profitability get an excellent rating, making CEU a very profitable company, without any liquidiy or solvency issues. CEU has a correct valuation and a medium growth rate. 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.
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's Return On Assets of 13.46% is fine compared to the rest of the industry. CEU outperforms 78.57% of its industry peers.
CEU has a better Return On Equity (26.59%) than 85.71% of its industry peers.
The Return On Invested Capital of CEU (17.81%) is better than 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 12.24%.
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
CEU has a better Profit Margin (8.62%) than 67.86% of its industry peers.
In the last couple of years the Profit Margin of CEU has grown nicely.
CEU has a better Operating Margin (11.33%) than 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 24.34%, 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 4.44 indicates that CEU is not in any danger for bankruptcy at the moment.
CEU has a better Altman-Z score (4.44) than 85.71% of its industry peers.
CEU has a debt to FCF ratio of 2.22. This is a good value and a sign of high solvency as CEU would need 2.22 years to pay back of all of its debts.
CEU has a Debt to FCF ratio of 2.22. This is in the better half of the industry: CEU outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that CEU is somewhat dependend on debt financing.
CEU has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: CEU outperforms 42.86% of its industry peers.
Even though the debt/equity ratio score it not favorable for CEU, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 4.44 |
ROIC/WACC2.33
WACC7.65%
2.3 Liquidity
A Current Ratio of 2.82 indicates that CEU has no problem at all paying its short term obligations.
CEU's Current ratio of 2.82 is amongst the best of the industry. CEU outperforms 92.86% of its industry peers.
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 67.86% 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.
Looking at the last year, CEU shows a small growth in Revenue. The Revenue has grown by 5.94% in the last 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
Based on estimates for the next years, CEU will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.48% on average per year.
Based on estimates for the next years, CEU will show a small growth in Revenue. The Revenue will grow by 5.27% on average per year.
EPS Next Y39.08%
EPS Next 2Y22.56%
EPS Next 3Y19.24%
EPS Next 5Y19.48%
Revenue Next Year9.41%
Revenue Next 2Y6.78%
Revenue Next 3Y6.8%
Revenue Next 5Y5.27%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CEU is valuated reasonably with a Price/Earnings ratio of 11.65.
The rest of the industry has a similar Price/Earnings ratio as CEU.
When comparing the Price/Earnings ratio of CEU to the average of the S&P500 Index (26.92), we can say CEU is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.55, the valuation of CEU can be described as very reasonable.
CEU's Price/Forward Earnings is on the same level as the industry average.
CEU's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CEU is valued a bit more expensive than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CEU is valued a bit cheaper than 60.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
CEU's 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 19.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)0.42
EPS Next 2Y22.56%
EPS Next 3Y19.24%
5. Dividend
5.1 Amount
CEU has a Yearly Dividend Yield of 1.20%.
Compared to an average industry Dividend Yield of 12.96, CEU pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.20, CEU pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
The dividend of CEU is nicely growing with an annual growth rate of 15.17%!
CEU has paid a dividend for at least 10 years, which is 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
13.11% of the earnings are spent on dividend by CEU. This is a low number and sustainable payout ratio.
CEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.11%
EPS Next 2Y22.56%
EPS Next 3Y19.24%
CES ENERGY SOLUTIONS CORP
TSX:CEU (1/10/2025, 7:00:00 PM)
9.67
-0.11 (-1.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners40.73%
Inst Owner ChangeN/A
Ins Owners3.58%
Ins Owner ChangeN/A
Market Cap2.18B
Analysts78.33
Price Target11.12 (14.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)2.95%
PT rev (3m)8.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.55 | ||
| P/S | 0.95 | ||
| P/FCF | 11.34 | ||
| P/OCF | 7.75 | ||
| P/B | 2.93 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)0.83
EY8.58%
EPS(NY)0.92
Fwd EY9.47%
FCF(TTM)0.85
FCFY8.82%
OCF(TTM)1.25
OCFY12.9%
SpS10.19
BVpS3.3
TBVpS2.93
PEG (NY)0.3
PEG (5Y)0.42
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 | 4.44 |
F-Score7
WACC7.65%
ROIC/WACC2.33
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 3Y19.24%
EPS Next 5Y19.48%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%13.05%
Revenue Next Year9.41%
Revenue Next 2Y6.78%
Revenue Next 3Y6.8%
Revenue Next 5Y5.27%
EBIT growth 1Y20.56%
EBIT growth 3YN/A
EBIT growth 5Y24.04%
EBIT Next Year79.57%
EBIT Next 3Y25.26%
EBIT Next 5Y17.07%
FCF growth 1Y247.35%
FCF growth 3Y19.72%
FCF growth 5YN/A
OCF growth 1Y447.69%
OCF growth 3Y24.42%
OCF growth 5Y31.21%