Executive Summary
CES Energy Solutions Corp., together with its subsidiaries, provides consumable chemical solutions throughout the life-cycle of the oilfield.
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has CES Energy Solutions's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CEU has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
CEU
-0.7%
CA Energy Services
0.7%
CA Market
1 Year Return
-39.1%
CEU
-32.9%
CA Energy Services
5.4%
CA Market
Return vs Industry: CEU underperformed the Canadian Energy Services industry which returned -32.9% over the past year.
Return vs Market: CEU underperformed the Canadian Market which returned 5.4% over the past year.
Shareholder returns
| CEU | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | -0.7% | 0.7% |
| 30 Day | -7.9% | -3.1% | 1.1% |
| 90 Day | 2.1% | 1.9% | 4.4% |
| 1 Year | -37.4%-39.1% | -30.8%-32.9% | 8.7%5.4% |
| 3 Year | -75.2%-76.3% | -54.4%-57.7% | 16.8%6.2% |
| 5 Year | -64.9%-68.3% | -55.5%-60.7% | 34.7%15.1% |
Price Volatility Vs. Market
How volatile is CES Energy Solutions's share price compared to the market and industry in the last 5 years?
Simply Wall St News
15 hours ago | Simply Wall St
Despite Its High P/E Ratio, Is CES Energy Solutions Corp. (TSE:CEU) Still Undervalued?1 week ago | Simply Wall St
Is There An Opportunity With CES Energy Solutions Corp.'s (TSE:CEU) 25% Undervaluation?3 weeks ago | Simply Wall St
CES Energy Solutions Corp. (TSE:CEU) Goes Ex-Dividend In 4 DaysValuation
Is CES Energy Solutions undervalued compared to its fair value and its price relative to the market?
25.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CEU (CA$1.98) is trading below our estimate of fair value (CA$2.67)
Significantly Below Fair Value: CEU is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CEU is poor value based on its PE Ratio (15.7x) compared to the Energy Services industry average (14.7x).
PE vs Market: CEU is good value based on its PE Ratio (15.7x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: CEU is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: CEU is overvalued based on its PB Ratio (0.8x) compared to the CA Energy Services industry average (0.7x).
Next Steps
Future Growth
How is CES Energy Solutions forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
33.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CEU's forecast earnings growth (33.6% per year) is above the savings rate (1.4%).
Earnings vs Market: CEU's earnings (33.6% per year) are forecast to grow faster than the Canadian market (10.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CEU's revenue (1.2% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: CEU's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CEU's Return on Equity is forecast to be low in 3 years time (6.8%).
Next Steps
Past Performance
How has CES Energy Solutions performed over the past 5 years?
13.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CEU has high quality earnings.
Growing Profit Margin: CEU's current net profit margins (2.6%) are lower than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: CEU's earnings have grown by 13.1% per year over the past 5 years.
Accelerating Growth: CEU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CEU had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Energy Services industry average (26.1%).
Return on Equity
High ROE: CEU's Return on Equity (4.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is CES Energy Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: CEU's short term assets (CA$515.5M) exceed its short term liabilities (CA$152.3M).
Long Term Liabilities: CEU's short term assets (CA$515.5M) exceed its long term liabilities (CA$398.8M).
Debt to Equity History and Analysis
Debt Level: CEU's debt to equity ratio (53.9%) is considered high.
Reducing Debt: CEU's debt to equity ratio has reduced from 62.7% to 53.9% over the past 5 years.
Debt Coverage: CEU's debt is well covered by operating cash flow (43.8%).
Interest Coverage: CEU's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Inventory Level: CEU has a high level of physical assets or inventory.
Debt Coverage by Assets: CEU's debt is covered by short term assets (assets are 1.4x debt).
Next Steps
Dividend
What is CES Energy Solutions's current dividend yield, its reliability and sustainability?
3.03%
Current Dividend Yield
Upcoming Dividend Payment
Purchase CES Energy Solutions before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CEU's dividend (3.03%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: CEU's dividend (3.03%) is low compared to the top 25% of dividend payers in the Canadian market (5.29%).
Stability and Growth of Payments
Stable Dividend: CEU's dividends per share have been stable in the past 10 years.
Growing Dividend: CEU's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.5%), CEU's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CEU's dividends in 3 years are forecast to be well covered by earnings (38.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Tom Simons (49yo)
13.9yrs
Tenure
CA$2,959,475
Compensation
Mr. Thomas J. Simons, also known as Tom, has been the Chief Executive Officer and President at Canadian Energy Services Inc. since March 2006 and CES Energy Solutions Corp. (formerly known as Canadian Ener ...
CEO Compensation Analysis
Compensation vs Market: Tom's total compensation ($USD2.24M) is above average for companies of similar size in the Canadian market ($USD986.64K).
Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.9yrs | CA$2.96m | 0.94% CA$4.9m | |
| Chief Financial Officer | 1.3yrs | CA$1.25m | 0.034% CA$179.7k | |
| COO & President of Canadian Drilling Fluids | 14.1yrs | CA$2.37m | 0.55% CA$2.9m | |
| President of Canadian Production Chemicals | 1.5yrs | CA$2.36m | no data | |
| President of US Production Chemicals | 1.5yrs | CA$2.38m | 0.90% CA$4.7m | |
| Vice President of Sales & Marketing | 13.9yrs | CA$413.17k | 0.022% CA$115.1k | |
| Corporate Secretary | 6.1yrs | no data | 0.016% CA$81.7k | |
| President of AES Drilling Fluids | 6.1yrs | no data | 0.085% CA$443.8k |
6.1yrs
Average Tenure
Experienced Management: CEU's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.9yrs | CA$2.96m | 0.94% CA$4.9m | |
| Independent Director | 1.2yrs | CA$103.09k | 0.015% CA$79.3k | |
| Independent Director | 14.2yrs | CA$167.00k | 0.52% CA$2.7m | |
| Independent Chairman of the Board | 0yrs | CA$265.00k | 0.61% CA$3.2m | |
| Independent Director | 14.2yrs | CA$164.00k | 2.24% CA$11.7m | |
| Independent Director | 2.4yrs | CA$157.50k | 0.031% CA$160.3k | |
| Independent Director | 4.8yrs | CA$164.00k | 0.051% CA$268.0k |
9.5yrs
Average Tenure
61yo
Average Age
Experienced Board: CEU's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CEU insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CES Energy Solutions Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CES Energy Solutions Corp.
- Ticker: CEU
- Exchange: TSX
- Founded: 1986
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: CA$522.633m
- Shares outstanding: 263.96m
- Website: https://www.cesenergysolutions.com
Number of Employees
Location
- CES Energy Solutions Corp.
- 332-6th Avenue
- Suite 1400
- Calgary
- Alberta
- T2P 0B2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CEU | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Mar 2006 |
| CESD.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Mar 2006 |
| 7C4 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 2006 |
Biography
CES Energy Solutions Corp., together with its subsidiaries, provides consumable chemical solutions throughout the life-cycle of the oilfield. The company provides solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and through to the pipeline and midstream market. Its solutions include corrosion inhibitors, demulsifiers, H2S scavengers, paraffin control products, surfactants, scale inhibitors, biocides, and other specialty products. The company also designs and implements drilling fluid systems and completion solutions for oil and gas producers; and designs and manufactures production and specialty chemicals for use in the oil and natural gas production markets, the stimulation and fracturing markets, and the pipeline and midstream markets. In addition, it provides environmental consulting, water management services, and drilling fluids waste disposal services primarily to oil and gas producers; and trucks and trailers to transport products in the oil and gas industry. It serves oil and natural gas industry, including multinational producers, intermediate oil and natural gas operators, independent juniors, and joint ventures, as well as pipeline and mid-stream markets in western Canada and the United States. The company was formerly known as Canadian Energy Services & Technology Corp. and changed its name to CES Energy Solutions Corp. in June 2017. CES Energy Solutions Corp. was incorporated in 1986 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 02:39 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.