CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD
Taking everything into account, CEU scores 7 out of 10 in our fundamental rating. CEU was compared to 26 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 is not valued too expensively and it also shows a decent 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.
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
With an excellent Return On Assets value of 11.33%, CEU belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.79%, CEU belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.30%, CEU belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CEU is above the industry average of 10.82%.
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
The Profit Margin of CEU (7.53%) is better than 61.54% of its industry peers.
In the last couple of years the Profit Margin of CEU has grown nicely.
The Operating Margin of CEU (11.17%) is better than 69.23% of its industry peers.
In the last couple of years the Operating Margin of CEU has grown nicely.
The Gross Margin of CEU (24.25%) 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for CEU has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.86 indicates that CEU is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.86, 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 2.63, 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.
The Debt to FCF ratio of CEU (2.63) is better than 73.08% of its industry peers.
CEU has a Debt/Equity ratio of 0.50. This is a neutral value indicating CEU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, CEU is in line with its industry, outperforming 42.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.86 |
ROIC/WACC2.03
WACC8.51%
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.
CEU has a better Current ratio (2.92) than 92.31% of its industry peers.
A Quick Ratio of 1.60 indicates that CEU should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.60, CEU is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| 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
The Revenue has grown by 9.26% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 18.04% on average over the next years. This is quite good.
CEU is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.34% yearly.
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
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.
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 9.49.
CEU's Price/Earnings ratio is a bit cheaper when compared to the industry. CEU is cheaper than 69.23% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. CEU is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.28, which indicates a rather cheap valuation of CEU.
61.54% 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 (35.33), we can say CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
CEU's Enterprise Value to EBITDA ratio is in line with the industry average.
CEU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.31 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
CEU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CEU 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)1.05
PEG (5Y)0.19
EPS Next 2Y8.89%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
CEU has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 10.80, CEU pays a bit more dividend than its industry peers.
CEU's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
On average, the dividend of CEU grows each year by 14.06%, which is quite nice.
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
15.36% 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 earnings are growing more, so the dividend growth is sustainable.
DP15.36%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
TSX:CEU (7/14/2025, 7:00:00 PM)
7.31
-0.04 (-0.54%)
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 Cap1.62B
Analysts80
Price Target9.75 (33.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)-11.17%
Min EPS beat(2)-14.11%
Max EPS beat(2)-8.23%
EPS beat(4)2
Avg EPS beat(4)4.61%
Min EPS beat(4)-14.11%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)15.28%
EPS beat(12)8
Avg EPS beat(12)14.85%
EPS beat(16)12
Avg EPS beat(16)120.31%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.31%
Min Revenue beat(4)0.17%
Max Revenue beat(4)2.29%
Revenue beat(8)7
Avg Revenue beat(8)1.24%
Revenue beat(12)10
Avg Revenue beat(12)2.67%
Revenue beat(16)14
Avg Revenue beat(16)3.85%
PT rev (1m)0%
PT rev (3m)-14.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-1.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.28 | ||
| P/S | 0.67 | ||
| P/FCF | 9.31 | ||
| P/OCF | 5.79 | ||
| P/B | 1.95 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 5.78 |
EPS(TTM)0.77
EY10.53%
EPS(NY)1
Fwd EY13.74%
FCF(TTM)0.79
FCFY10.74%
OCF(TTM)1.26
OCFY17.26%
SpS10.85
BVpS3.75
TBVpS3.33
PEG (NY)1.05
PEG (5Y)0.19
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 | 3.86 |
F-Score6
WACC8.51%
ROIC/WACC2.03
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%