CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CEU - CA15713J1049 - Common Stock
14.19 CAD
-0.11 (-0.77%)
Overall CEU gets a fundamental rating of 6 out of 10. We evaluated CEU against 27 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make CEU suitable for 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.
- In multiple years CEU reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.98%, CEU belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
- The Return On Equity of CEU (22.06%) is better than 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 3 year average ROIC (15.43%) for CEU is below the current ROIC(16.80%), indicating increased profibility in the last year.
| 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.
- In the last couple of years the Operating Margin of CEU has grown nicely.
- CEU has a Gross Margin of 23.68%. This is comparable to the rest of the industry: CEU outperforms 59.26% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CEU 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.
- CEU has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.88 indicates that CEU is not in any danger for bankruptcy at the moment.
- CEU has a better Altman-Z score (4.88) than 88.89% of its industry peers.
- The Debt to FCF ratio of CEU is 3.64, which is a good value as it means it would take CEU, 3.64 years of fcf income to pay off all of its debts.
- CEU has a Debt to FCF ratio of 3.64. This is in the better half of the industry: CEU outperforms 74.07% of its industry peers.
- 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/WACC2.09
WACC8.04%
2.3 Liquidity
- CEU has a Current Ratio of 3.02. This indicates that CEU is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.02, CEU belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
- CEU has a Quick Ratio of 1.74. 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 Quick ratio of 1.74. This is in the better half 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.
- Looking at the last year, CEU shows a small growth in Revenue. The Revenue has grown by 5.79% in the last year.
- CEU shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.00% yearly.
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
- The Earnings Per Share is expected to grow by 13.19% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.62% on average over the next years.
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
- 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
- Based on the Price/Earnings ratio of 18.19, the valuation of CEU can be described as rather expensive.
- CEU's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. CEU is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 14.23, the valuation of CEU can be described as correct.
- CEU's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of CEU to the average of the S&P500 Index (25.98), we can say CEU is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.19 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CEU is valued more expensive than 81.48% of the companies in the same industry.
- CEU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.1 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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 1.18, CEU pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, 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
- 18.25% of the earnings are spent on dividend by CEU. This is a low number and 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 18.19 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.