CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CEU - CA15713J1049 - Common Stock
13.99 CAD
-0.2 (-1.41%)
Taking everything into account, CEU scores 6 out of 10 in our fundamental rating. CEU was compared to 27 industry peers in the Energy Equipment & Services industry. CEU scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CEU is quite expensive at the moment. It does show a decent growth rate. These ratings could make CEU a good candidate for 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.
- CEU had positive earnings in 4 of the past 5 years.
- 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 10.98%. This is amongst the best in the industry. CEU outperforms 85.19% of its industry peers.
- CEU has a Return On Equity of 22.06%. This is amongst the best in the industry. CEU outperforms 85.19% of its industry peers.
- With an excellent Return On Invested Capital value of 16.80%, CEU belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital 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
- CEU has a better Profit Margin (7.32%) than 74.07% of its industry peers.
- CEU's Profit Margin has improved in the last couple of years.
- CEU has a better Operating Margin (10.95%) than 74.07% of its industry peers.
- CEU's Operating Margin has improved in the last couple of years.
- CEU has a Gross Margin (23.68%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of CEU has grown nicely.
| 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.
- CEU has less shares outstanding than it did 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.
- With an excellent Altman-Z score value of 4.88, CEU belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- 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.
- CEU's Current ratio of 3.02 is amongst the best of the industry. CEU outperforms 92.59% of its industry peers.
- A Quick Ratio of 1.74 indicates that CEU should not have too much problems paying 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
- The earnings per share for CEU have decreased by -6.02% in the last year.
- The Earnings Per Share has been growing by 49.08% on average over the past years. This is a very strong growth
- Looking at the last year, CEU shows a small growth in Revenue. The Revenue has grown by 5.79% in the last year.
- The Revenue has been growing by 13.00% on average over the past years. This is quite good.
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
- CEU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.19% yearly.
- Based on estimates for the next years, CEU will show a small growth in Revenue. The Revenue will grow by 5.62% on average per year.
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
- 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
- With a Price/Earnings ratio of 17.94, CEU is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as CEU.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, CEU is valued a bit cheaper.
- CEU is valuated correctly with a Price/Forward Earnings ratio of 14.03.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CEU is on the same level as its industry peers.
- CEU's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.94 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CEU indicates a rather expensive valuation: CEU more expensive than 81.48% of the companies listed in the same industry.
- CEU's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 9.63 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CEU does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of CEU may justify a higher PE ratio.
PEG (NY)5.13
PEG (5Y)0.37
EPS Next 2Y10.94%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
- CEU has a Yearly Dividend Yield of 1.19%.
- CEU's Dividend Yield is a higher than the industry average which is at 1.18.
- CEU's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
- The dividend of CEU is nicely growing with an annual growth rate of 14.06%!
- 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)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.
- The dividend of CEU is growing, but the earnings are growing slower. 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 17.94 and the Price/Book (PB) ratio is 3.7.
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.