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CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis

TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD

8.91  +0.34 (+3.97%)

Fundamental Rating

7

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. 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. These ratings could make CEU a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

CEU had positive earnings in the past year.
CEU had a positive operating cash flow in the past year.
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.
CEU.CA Yearly Net Income VS EBIT VS OCF VS FCFCEU.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M 300M

1.2 Ratios

With a decent Return On Assets value of 13.46%, CEU is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Equity of CEU (26.59%) is better than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.81%, CEU belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CEU is in line with the industry average of 12.35%.
The last Return On Invested Capital (17.81%) for CEU is above the 3 year average (11.18%), which is a sign of increasing profitability.
Industry RankSector 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
CEU.CA Yearly ROA, ROE, ROICCEU.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

CEU has a Profit Margin of 8.62%. This is in the better half of the industry: CEU outperforms 67.86% of its industry peers.
CEU's Profit Margin has improved in the last couple of years.
CEU's Operating Margin of 11.33% is fine compared to the rest of the industry. CEU outperforms 67.86% of its industry peers.
CEU's Operating Margin has improved in the last couple of years.
CEU has a Gross Margin (24.34%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CEU has remained more or less at the same level.
Industry RankSector 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%
CEU.CA Yearly Profit, Operating, Gross MarginsCEU.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

8

2. Health

2.1 Basic Checks

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.
CEU.CA Yearly Shares OutstandingCEU.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
CEU.CA Yearly Total Debt VS Total AssetsCEU.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

CEU has an Altman-Z score of 4.49. This indicates that CEU is financially healthy and has little risk of bankruptcy at the moment.
CEU's Altman-Z score of 4.49 is amongst the best of the industry. CEU outperforms 85.71% of its industry peers.
The Debt to FCF ratio of CEU is 2.22, which is a good value as it means it would take CEU, 2.22 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.22, CEU is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that CEU is somewhat dependend on debt financing.
The Debt to Equity ratio of CEU (0.53) is comparable to the rest of the industry.
Although CEU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.22
Altman-Z 4.49
ROIC/WACCN/A
WACCN/A
CEU.CA Yearly LT Debt VS Equity VS FCFCEU.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

CEU has a Current Ratio of 2.82. This indicates that CEU is financially healthy and has no problem in meeting its short term obligations.
CEU has a Current ratio of 2.82. This is amongst the best in the industry. CEU outperforms 92.86% of its industry peers.
A Quick Ratio of 1.52 indicates that CEU should not have too much problems paying its short term obligations.
CEU has a Quick ratio of 1.52. This is in the better half of the industry: CEU outperforms 67.86% of its industry peers.
Industry RankSector Rank
Current Ratio 2.82
Quick Ratio 1.52
CEU.CA Yearly Current Assets VS Current LiabilitesCEU.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 48.21% over the past year.
CEU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.65% yearly.
CEU shows a small growth in Revenue. In the last year, the Revenue has grown by 5.94%.
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)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

The Earnings Per Share is expected to grow by 19.97% 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 6.48% yearly.
EPS Next Y38.14%
EPS Next 2Y22.46%
EPS Next 3Y19.24%
EPS Next 5Y19.97%
Revenue Next Year9.14%
Revenue Next 2Y6.5%
Revenue Next 3Y5.85%
Revenue Next 5Y6.48%

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.
CEU.CA Yearly Revenue VS EstimatesCEU.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B 2.5B
CEU.CA Yearly EPS VS EstimatesCEU.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.5 -0.5 1 -1 1.5

6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.73, which indicates a very decent valuation of CEU.
Based on the Price/Earnings ratio, CEU is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.35, CEU is valued rather cheaply.
A Price/Forward Earnings ratio of 9.74 indicates a reasonable valuation of CEU.
The rest of the industry has a similar Price/Forward Earnings ratio as CEU.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.00, CEU is valued rather cheaply.
Industry RankSector Rank
PE 10.73
Fwd PE 9.74
CEU.CA Price Earnings VS Forward Price EarningsCEU.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CEU.
Industry RankSector Rank
P/FCF 11.8
EV/EBITDA 7.9
CEU.CA Per share dataCEU.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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.
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 19.24% in the coming years.
PEG (NY)0.28
PEG (5Y)0.39
EPS Next 2Y22.46%
EPS Next 3Y19.24%

6

5. Dividend

5.1 Amount

CEU has a Yearly Dividend Yield of 1.35%.
CEU's Dividend Yield is a higher than the industry average which is at 13.02.
With a Dividend Yield of 1.35, CEU pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

On average, the dividend of CEU grows each year by 15.17%, 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)15.17%
Div Incr Years4
Div Non Decr Years4
CEU.CA Yearly Dividends per shareCEU.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3

5.3 Sustainability

13.11% 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.
DP13.11%
EPS Next 2Y22.46%
EPS Next 3Y19.24%
CEU.CA Yearly Income VS Free CF VS DividendCEU.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M 200M -200M
CEU.CA Dividend Payout.CEU.CA Dividend Payout, showing the Payout Ratio.CEU.CA Dividend Payout.PayoutRetained Earnings

CES ENERGY SOLUTIONS CORP

TSX:CEU (2/5/2025, 7:00:00 PM)

8.91

+0.34 (+3.97%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap0
Analysts78.33
Price Target11.51 (29.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend0.09
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)3.44%
PT rev (3m)11.76%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)6.96%
EPS NY rev (1m)-0.68%
EPS NY rev (3m)0.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.4%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.68%
Valuation
Industry RankSector Rank
PE 10.73
Fwd PE 9.74
P/S 0.99
P/FCF 11.8
P/OCF 8.06
P/B 3.04
P/tB 3.44
EV/EBITDA 7.9
EPS(TTM)0.83
EY9.32%
EPS(NY)0.91
Fwd EY10.27%
FCF(TTM)0.76
FCFY8.48%
OCF(TTM)1.11
OCFY12.4%
SpS9.03
BVpS2.93
TBVpS2.59
PEG (NY)0.28
PEG (5Y)0.39
Profitability
Industry RankSector 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 RankSector 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 4.49
F-Score7
WACCN/A
ROIC/WACCN/A
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 Y38.14%
EPS Next 2Y22.46%
EPS Next 3Y19.24%
EPS Next 5Y19.97%
Revenue 1Y (TTM)5.94%
Revenue growth 3Y34.56%
Revenue growth 5Y11.22%
Sales Q2Q%13.05%
Revenue Next Year9.14%
Revenue Next 2Y6.5%
Revenue Next 3Y5.85%
Revenue Next 5Y6.48%
EBIT growth 1Y20.56%
EBIT growth 3YN/A
EBIT growth 5Y24.04%
EBIT Next Year79.57%
EBIT Next 3Y25.26%
EBIT Next 5Y17.54%
FCF growth 1Y247.35%
FCF growth 3Y19.72%
FCF growth 5YN/A
OCF growth 1Y447.69%
OCF growth 3Y24.42%
OCF growth 5Y31.21%