CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD
CEU gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 27 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 has a decent growth rate and is not valued too expensively. Finally CEU also has an excellent dividend rating. This makes CEU very considerable for dividend and 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.
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
With an excellent Return On Assets value of 11.33%, CEU belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
The Return On Equity of CEU (21.79%) is better than 81.48% of its industry peers.
With an excellent Return On Invested Capital value of 17.30%, CEU belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
CEU had an Average Return On Invested Capital over the past 3 years of 15.43%. This is above the industry average of 11.00%.
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
CEU has a Profit Margin of 7.53%. This is in the better half of the industry: CEU outperforms 62.96% of its industry peers.
CEU's Profit Margin has improved in the last couple of years.
CEU's Operating Margin of 11.17% is fine compared to the rest of the industry. CEU outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CEU has grown nicely.
Looking at the Gross Margin, with a value of 24.25%, CEU is in line with its industry, outperforming 55.56% of the companies in the same industry.
CEU's Gross Margin has improved in the last couple of years.
| 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
CEU has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CEU has less shares outstanding
Compared to 5 years ago, CEU has less shares outstanding
CEU has a better debt/assets ratio than last year.
2.2 Solvency
CEU has an Altman-Z score of 3.85. This indicates that CEU is financially healthy and has little risk of bankruptcy at the moment.
CEU's Altman-Z score of 3.85 is amongst the best of the industry. CEU outperforms 85.19% of its industry peers.
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.
CEU has a better Debt to FCF ratio (2.63) than 74.07% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that CEU is somewhat dependend on debt financing.
CEU's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. CEU outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.85 |
ROIC/WACC2.12
WACC8.15%
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 92.59% of its industry peers.
CEU has a Quick Ratio of 1.60. This is a normal value and indicates that CEU is financially healthy and should not expect problems in meeting its short term obligations.
CEU's Quick ratio of 1.60 is fine compared to the rest of the industry. CEU outperforms 74.07% of its industry peers.
| 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.
CEU shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 49.00% yearly.
Looking at the last year, CEU shows a quite strong growth in Revenue. The Revenue has grown by 9.26% 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)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
CEU is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.04% yearly.
The Revenue is expected to grow by 2.34% on average over the next years.
EPS Next Y9.03%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
EPS Next 5Y18.04%
Revenue Next Year4.22%
Revenue Next 2Y2.97%
Revenue Next 3Y2.98%
Revenue Next 5Y2.34%
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
The Price/Earnings ratio is 9.47, 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 62.96% of the companies are valued more expensively.
CEU is valuated cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.26, which indicates a rather cheap valuation of CEU.
Based on the Price/Forward Earnings ratio, CEU is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CEU to the average of the S&P500 Index (35.28), we can say CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 7.26 |
4.2 Price Multiples
CEU's Enterprise Value to EBITDA is on the same level as the industry average.
CEU's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as CEU's earnings are expected to grow with 14.73% in the coming years.
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 2.34%.
CEU's Dividend Yield is rather good when compared to the industry average which is at 3.15. CEU pays more dividend than 81.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CEU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
CEU pays out 15.36% of its income as dividend. This is a sustainable payout ratio.
CEU's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.36%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
TSX:CEU (8/7/2025, 7:00:00 PM)
7.29
+0.03 (+0.41%)
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 Cap1.60B
Analysts80
Price Target9.85 (35.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)0.98%
PT rev (3m)-7.76%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.47 | ||
| Fwd PE | 7.26 | ||
| P/S | 0.67 | ||
| P/FCF | 9.25 | ||
| P/OCF | 5.76 | ||
| P/B | 1.94 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.77
EY10.56%
EPS(NY)1
Fwd EY13.78%
FCF(TTM)0.79
FCFY10.81%
OCF(TTM)1.27
OCFY17.37%
SpS10.89
BVpS3.77
TBVpS3.35
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 | 3.85 |
F-Score6
WACC8.15%
ROIC/WACC2.12
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 2Y2.97%
Revenue Next 3Y2.98%
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%