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 26 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 is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, CEU could be worth investigating further 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 better Return On Assets (12.41%) than 80.77% of its industry peers.
CEU's Return On Equity of 23.47% is amongst the best of the industry. CEU outperforms 84.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.62%, CEU belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 23.47% | ||
| ROIC | 17.62% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CEU's Profit Margin of 8.12% is fine compared to the rest of the industry. CEU outperforms 65.38% of its industry peers.
CEU's Profit Margin has improved in the last couple of years.
CEU's Operating Margin of 11.31% is fine compared to the rest of the industry. CEU outperforms 73.08% of its industry peers.
CEU's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 24.69%, CEU is in line with its industry, outperforming 57.69% of the companies in the same industry.
CEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.31% | ||
| PM (TTM) | 8.12% | ||
| GM | 24.69% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CEU is creating value.
There is no outstanding debt for CEU. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CEU has an Altman-Z score of 3.76. This indicates that CEU is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.76, CEU belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
The Debt to FCF ratio of CEU is 2.06, which is a good value as it means it would take CEU, 2.06 years of fcf income to pay off all of its debts.
CEU's Debt to FCF ratio of 2.06 is fine compared to the rest of the industry. CEU outperforms 73.08% of its industry peers.
CEU has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, CEU perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 3.76 |
ROIC/WACC2.01
WACC8.78%
2.3 Liquidity
CEU has a Current Ratio of 3.06. This indicates that CEU is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.06, CEU belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
A Quick Ratio of 1.62 indicates that CEU should not have too much problems paying its short term obligations.
CEU has a better Quick ratio (1.62) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
CEU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.79%, which is quite impressive.
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 quite strong growth in Revenue. The Revenue has grown by 8.79% in the last year.
CEU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.22% yearly.
EPS 1Y (TTM)32.79%
EPS 3Y82.72%
EPS 5Y27.65%
EPS Q2Q%-10%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%9.38%
3.2 Future
CEU is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.50% yearly.
CEU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y38.85%
EPS Next 2Y22.56%
EPS Next 3Y18.08%
EPS Next 5Y20.5%
Revenue Next Year9.41%
Revenue Next 2Y7.06%
Revenue Next 3Y6.8%
Revenue Next 5Y4.01%
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.
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
The Price/Earnings ratio is 7.64, which indicates a rather cheap valuation of CEU.
65.38% of the companies in the same industry are more expensive than CEU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CEU to the average of the S&P500 Index (28.79), we can say CEU is valued rather cheaply.
A Price/Forward Earnings ratio of 6.76 indicates a rather cheap valuation of CEU.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CEU indicates a somewhat cheap valuation: CEU is cheaper than 69.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CEU to the average of the S&P500 Index (21.38), we can say CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.76 |
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 ratio is a bit cheaper when compared to the industry. CEU is cheaper than 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.56 | ||
| EV/EBITDA | 5.16 |
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.
The decent profitability rating of CEU may justify a higher PE ratio.
A more expensive valuation may be justified as CEU's earnings are expected to grow with 18.08% in the coming years.
PEG (NY)0.2
PEG (5Y)0.28
EPS Next 2Y22.56%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, CEU has a reasonable but not impressive dividend return.
In the last 3 months the price of CEU has falen by -31.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CEU's Dividend Yield is a higher than the industry average which is at 21.34.
CEU's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
14.06% 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.
DP14.06%
EPS Next 2Y22.56%
EPS Next 3Y18.08%
TSX:CEU (4/25/2025, 7:00:00 PM)
6.19
+0.05 (+0.81%)
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 Cap1.39B
Analysts80
Price Target11.41 (84.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.09
Dividend Growth(5Y)15.17%
DP14.06%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.95%
Min EPS beat(2)-14.11%
Max EPS beat(2)4.22%
EPS beat(4)3
Avg EPS beat(4)17.7%
Min EPS beat(4)-14.11%
Max EPS beat(4)44.13%
EPS beat(8)6
Avg EPS beat(8)15.92%
EPS beat(12)9
Avg EPS beat(12)15.82%
EPS beat(16)13
Avg EPS beat(16)123.86%
Revenue beat(2)2
Avg Revenue beat(2)1.23%
Min Revenue beat(2)0.17%
Max Revenue beat(2)2.29%
Revenue beat(4)4
Avg Revenue beat(4)1.9%
Min Revenue beat(4)0.17%
Max Revenue beat(4)4.17%
Revenue beat(8)6
Avg Revenue beat(8)1.01%
Revenue beat(12)10
Avg Revenue beat(12)2.7%
Revenue beat(16)14
Avg Revenue beat(16)4.04%
PT rev (1m)-0.83%
PT rev (3m)2.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.87%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.59 | ||
| P/FCF | 6.56 | ||
| P/OCF | 4.56 | ||
| P/B | 1.71 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)0.81
EY13.09%
EPS(NY)0.92
Fwd EY14.8%
FCF(TTM)0.94
FCFY15.23%
OCF(TTM)1.36
OCFY21.94%
SpS10.49
BVpS3.63
TBVpS3.22
PEG (NY)0.2
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.41% | ||
| ROE | 23.47% | ||
| ROCE | 21.68% | ||
| ROIC | 17.62% | ||
| ROICexc | 17.62% | ||
| ROICexgc | 19.04% | ||
| OM | 11.31% | ||
| PM (TTM) | 8.12% | ||
| GM | 24.69% | ||
| FCFM | 8.99% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score8
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.14 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 3.96% | ||
| Interest Coverage | 7.81 | ||
| Cash Conversion | 86.56% | ||
| Profit Quality | 110.7% | ||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 3.76 |
F-Score8
WACC8.78%
ROIC/WACC2.01
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)32.79%
EPS 3Y82.72%
EPS 5Y27.65%
EPS Q2Q%-10%
EPS Next Y38.85%
EPS Next 2Y22.56%
EPS Next 3Y18.08%
EPS Next 5Y20.5%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%9.38%
Revenue Next Year9.41%
Revenue Next 2Y7.06%
Revenue Next 3Y6.8%
Revenue Next 5Y4.01%
EBIT growth 1Y19.31%
EBIT growth 3Y57.05%
EBIT growth 5Y29.5%
EBIT Next Year39.23%
EBIT Next 3Y15.05%
EBIT Next 5Y9.85%
FCF growth 1Y-3.97%
FCF growth 3YN/A
FCF growth 5Y10.43%
OCF growth 1Y0.96%
OCF growth 3YN/A
OCF growth 5Y10.22%