CES ENERGY SOLUTIONS CORP (CEU.CA) Stock Fundamental Analysis
TSX:CEU - Toronto Stock Exchange - CA15713J1049 - Common Stock - Currency: CAD
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. CEU has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CEU may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make CEU a good candidate for value and 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.
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 11.34%, CEU belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
CEU has a Return On Equity of 21.81%. This is in the better half of the industry: CEU outperforms 78.57% of its industry peers.
With an excellent Return On Invested Capital value of 17.30%, CEU belongs to the best of the industry, outperforming 92.86% 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 10.72%.
The last Return On Invested Capital (17.30%) for CEU is above the 3 year average (15.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 21.81% | ||
| 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
Looking at the Profit Margin, with a value of 7.54%, CEU is in line with its industry, outperforming 57.14% 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 (11.17%) is better than 64.29% of its industry peers.
In the last couple of years the Operating Margin of CEU has grown nicely.
CEU has a Gross Margin (24.25%) which 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 | 11.17% | ||
| PM (TTM) | 7.54% | ||
| 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
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
CEU has an Altman-Z score of 3.67. This indicates that CEU is financially healthy and has little risk of bankruptcy at the moment.
CEU has a Altman-Z score of 3.67. This is amongst the best in the industry. CEU outperforms 82.14% 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.
With a decent Debt to FCF ratio value of 2.63, CEU is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that CEU is somewhat dependend on debt financing.
CEU has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 3.67 |
ROIC/WACC2.07
WACC8.34%
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.
The Current ratio of CEU (2.92) is better than 92.86% 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 has a better Quick ratio (1.60) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
CEU shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.45%, which is quite good.
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.
Measured over the past years, CEU shows a quite strong growth in Revenue. The Revenue has been growing by 13.00% on average per year.
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 17.06% on average over the next years. This is quite good.
Based on estimates for the next years, CEU will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y8.18%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
EPS Next 5Y17.06%
Revenue Next Year4.22%
Revenue Next 2Y3.79%
Revenue Next 3Y4.21%
Revenue Next 5Y2.44%
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
Based on the Price/Earnings ratio of 7.96, the valuation of CEU can be described as very cheap.
CEU's Price/Earnings ratio is a bit cheaper when compared to the industry. CEU is cheaper than 67.86% of the companies in the same industry.
CEU is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
CEU is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
Based on the Price/Forward Earnings ratio, CEU is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CEU to the average of the S&P500 Index (21.76), we can say CEU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CEU.
The rest of the industry has a similar Price/Free Cash Flow ratio as CEU.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 5.11 |
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.
CEU has a very decent profitability rating, which 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)0.97
PEG (5Y)0.16
EPS Next 2Y8.89%
EPS Next 3Y14.73%
5. Dividend
5.1 Amount
CEU has a Yearly Dividend Yield of 2.75%.
In the last 3 months the price of CEU has falen by -26.94%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CEU's Dividend Yield is a higher than the industry average which is at 19.79.
Compared to an average S&P500 Dividend Yield of 2.39, CEU has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
5.2 History
The dividend of CEU is nicely growing with an annual growth rate of 14.06%!
CEU has been paying a dividend for at least 10 years, so it has 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 15.35% of its income as dividend. This is a sustainable payout ratio.
The dividend of CEU is growing, but earnings are growing more, so the dividend growth is sustainable.
DP15.35%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
TSX:CEU (5/23/2025, 7:00:00 PM)
6.13
+0.06 (+0.99%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners39.26%
Inst Owner ChangeN/A
Ins Owners3.47%
Ins Owner ChangeN/A
Market Cap1.38B
Analysts80
Price Target10.55 (72.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend0.12
Dividend Growth(5Y)14.06%
DP15.35%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-14.78%
Min EPS beat(2)-15.45%
Max EPS beat(2)-14.11%
EPS beat(4)2
Avg EPS beat(4)2.81%
Min EPS beat(4)-15.45%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)14.37%
EPS beat(12)8
Avg EPS beat(12)14.25%
EPS beat(16)12
Avg EPS beat(16)119.86%
Revenue beat(2)2
Avg Revenue beat(2)0.92%
Min Revenue beat(2)0.17%
Max Revenue beat(2)1.67%
Revenue beat(4)4
Avg Revenue beat(4)1.28%
Min Revenue beat(4)0.17%
Max Revenue beat(4)2.29%
Revenue beat(8)7
Avg Revenue beat(8)1.22%
Revenue beat(12)10
Avg Revenue beat(12)2.66%
Revenue beat(16)14
Avg Revenue beat(16)3.85%
PT rev (1m)-7.54%
PT rev (3m)-8.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)2.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 6.1 | ||
| P/S | 0.57 | ||
| P/FCF | 7.94 | ||
| P/OCF | 4.94 | ||
| P/B | 1.66 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 5.11 |
EPS(TTM)0.77
EY12.56%
EPS(NY)1
Fwd EY16.38%
FCF(TTM)0.77
FCFY12.6%
OCF(TTM)1.24
OCFY20.24%
SpS10.69
BVpS3.69
TBVpS3.28
PEG (NY)0.97
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.34% | ||
| ROE | 21.81% | ||
| ROCE | 21.29% | ||
| ROIC | 17.3% | ||
| ROICexc | 17.3% | ||
| ROICexgc | 18.67% | ||
| OM | 11.17% | ||
| PM (TTM) | 7.54% | ||
| GM | 24.25% | ||
| FCFM | 7.23% |
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 | 115.83% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 9.56 | ||
| Cash Conversion | 77.67% | ||
| Profit Quality | 95.88% | ||
| Current Ratio | 2.92 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 3.67 |
F-Score6
WACC8.34%
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)8.45%
EPS 3Y62.17%
EPS 5Y49%
EPS Q2Q%-17.39%
EPS Next Y8.18%
EPS Next 2Y8.89%
EPS Next 3Y14.73%
EPS Next 5Y17.06%
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 5Y2.44%
EBIT growth 1Y11.18%
EBIT growth 3Y57.05%
EBIT growth 5Y29.5%
EBIT Next Year39.23%
EBIT Next 3Y13.37%
EBIT Next 5Y9.85%
FCF growth 1Y567.04%
FCF growth 3YN/A
FCF growth 5Y10.43%
OCF growth 1Y235.72%
OCF growth 3YN/A
OCF growth 5Y10.22%