CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
Canada - TSX:CEU - CA15713J1049 - Common Stock
8.67 CAD
-0.12 (-1.37%)
We assign a fundamental rating of 7 out of 10 to CEU. CEU was compared to 28 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 not valued too expensively and it also shows a decent growth rate. These ratings could make CEU a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year CEU was profitable.
In the past year CEU had a positive cash flow from operations.
CEU had positive earnings in 4 of the past 5 years.
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 12.01%, CEU belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
With an excellent Return On Equity value of 23.36%, CEU belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.76%, CEU belongs to the top of the industry, outperforming 92.86% 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 11.19%.
The 3 year average ROIC (15.43%) for CEU is below the current ROIC(17.76%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.01% | ||
| ROE | 23.36% | ||
| ROIC | 17.76% |
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
Looking at the Profit Margin, with a value of 7.63%, CEU is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CEU has grown nicely.
The Operating Margin of CEU (11.19%) is better than 78.57% of its industry peers.
CEU's Operating Margin has improved in the last couple of years.
The Gross Margin of CEU (23.78%) is comparable to the rest of the industry.
CEU's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.78% |
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.
Compared to 1 year ago, CEU has less shares outstanding
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 4.26 indicates that CEU is not in any danger for bankruptcy at the moment.
CEU has a Altman-Z score of 4.26. This is amongst the best in the industry. CEU outperforms 85.71% of its industry peers.
The Debt to FCF ratio of CEU is 3.13, which is a good value as it means it would take CEU, 3.13 years of fcf income to pay off all of its debts.
CEU has a better Debt to FCF ratio (3.13) than 71.43% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CEU is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, CEU is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | 4.26 |
ROIC/WACC2.07
WACC8.59%
2.3 Liquidity
A Current Ratio of 3.12 indicates that CEU has no problem at all paying its short term obligations.
CEU has a Current ratio of 3.12. This is amongst the best in the industry. CEU outperforms 92.86% of its industry peers.
CEU has a Quick Ratio of 1.69. This is a normal value and indicates that CEU is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.69, CEU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.56% 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
CEU shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.36%.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)2.56%
EPS 3Y62.17%
EPS 5Y49%
EPS Q2Q%15%
Revenue 1Y (TTM)8.36%
Revenue growth 3Y25.3%
Revenue growth 5Y13%
Sales Q2Q%3.76%
3.2 Future
The Earnings Per Share is expected to grow by 14.26% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y1.53%
EPS Next 2Y5.06%
EPS Next 3Y14.67%
EPS Next 5Y14.26%
Revenue Next Year3.71%
Revenue Next 2Y5.52%
Revenue Next 3Y4.95%
Revenue Next 5Y3.15%
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
CEU is valuated reasonably with a Price/Earnings ratio of 10.84.
CEU's Price/Earnings ratio is in line with the industry average.
CEU is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
CEU is valuated reasonably with a Price/Forward Earnings ratio of 9.26.
CEU's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CEU is cheaper than 60.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.26 |
4.2 Price Multiples
60.71% of the companies in the same industry are cheaper than CEU, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CEU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.56 | ||
| EV/EBITDA | 6.45 |
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.
CEU has an outstanding profitability rating, which may justify a higher PE ratio.
CEU's earnings are expected to grow with 14.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.08
PEG (5Y)0.22
EPS Next 2Y5.06%
EPS Next 3Y14.67%
5. Dividend
5.1 Amount
CEU has a Yearly Dividend Yield of 1.93%.
CEU's Dividend Yield is a higher than the industry average which is at 3.18.
Compared to an average S&P500 Dividend Yield of 2.38, CEU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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
CEU pays out 16.36% of its income as dividend. This is a sustainable payout ratio.
CEU's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP16.36%
EPS Next 2Y5.06%
EPS Next 3Y14.67%
TSX:CEU (9/19/2025, 7:00:00 PM)
8.67
-0.12 (-1.37%)
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 Cap1.89B
Analysts81.67
Price Target10.2 (17.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Yearly Dividend0.12
Dividend Growth(5Y)14.06%
DP16.36%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.53%
Min EPS beat(2)-8.23%
Max EPS beat(2)15.3%
EPS beat(4)2
Avg EPS beat(4)-0.71%
Min EPS beat(4)-14.11%
Max EPS beat(4)15.3%
EPS beat(8)6
Avg EPS beat(8)14.87%
EPS beat(12)8
Avg EPS beat(12)10.71%
EPS beat(16)12
Avg EPS beat(16)22.19%
Revenue beat(2)1
Avg Revenue beat(2)0.5%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)1.79%
Revenue beat(4)3
Avg Revenue beat(4)1.19%
Min Revenue beat(4)-0.79%
Max Revenue beat(4)2.29%
Revenue beat(8)6
Avg Revenue beat(8)1.23%
Revenue beat(12)9
Avg Revenue beat(12)1.73%
Revenue beat(16)13
Avg Revenue beat(16)3.54%
PT rev (1m)2.24%
PT rev (3m)4.58%
EPS NQ rev (1m)4.71%
EPS NQ rev (3m)-7.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.26 | ||
| P/S | 0.78 | ||
| P/FCF | 12.56 | ||
| P/OCF | 7.24 | ||
| P/B | 2.39 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 6.45 |
EPS(TTM)0.8
EY9.23%
EPS(NY)0.94
Fwd EY10.8%
FCF(TTM)0.69
FCFY7.96%
OCF(TTM)1.2
OCFY13.81%
SpS11.11
BVpS3.63
TBVpS3.15
PEG (NY)7.08
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.01% | ||
| ROE | 23.36% | ||
| ROCE | 21.85% | ||
| ROIC | 17.76% | ||
| ROICexc | 17.76% | ||
| ROICexgc | 19.37% | ||
| OM | 11.19% | ||
| PM (TTM) | 7.63% | ||
| GM | 23.78% | ||
| FCFM | 6.21% |
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-Score4
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 116.36% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 81.49% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 4.26 |
F-Score4
WACC8.59%
ROIC/WACC2.07
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)2.56%
EPS 3Y62.17%
EPS 5Y49%
EPS Q2Q%15%
EPS Next Y1.53%
EPS Next 2Y5.06%
EPS Next 3Y14.67%
EPS Next 5Y14.26%
Revenue 1Y (TTM)8.36%
Revenue growth 3Y25.3%
Revenue growth 5Y13%
Sales Q2Q%3.76%
Revenue Next Year3.71%
Revenue Next 2Y5.52%
Revenue Next 3Y4.95%
Revenue Next 5Y3.15%
EBIT growth 1Y10.11%
EBIT growth 3Y57.05%
EBIT growth 5Y29.5%
EBIT Next Year40.73%
EBIT Next 3Y17.51%
EBIT Next 5Y9.83%
FCF growth 1Y32.27%
FCF growth 3YN/A
FCF growth 5Y10.43%
OCF growth 1Y40.88%
OCF growth 3YN/A
OCF growth 5Y10.22%