TSX:CEU

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

CES Energy Solutions

Executive Summary

CES Energy Solutions Corp., together with its subsidiaries, provides consumable chemical solutions throughout the life-cycle of the oilfield. More Details


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

CEU

-6.9%

CA Energy Services

-8.1%

CA Market


1 Year Return

-61.1%

CEU

-55.0%

CA Energy Services

-60.7%

CA Market

Return vs Industry: CEU underperformed the Canadian Energy Services industry which returned -55% over the past year.

Return vs Market: CEU matched the Canadian Market which returned -60.7% over the past year.


Shareholder returns

CEUIndustryMarket
7 Day-4.1%-6.9%-8.1%
30 Day-10.3%-1.8%-6.7%
90 Day-24.7%-7.7%-26.5%
1 Year-60.6%-61.1%-52.9%-55.0%-59.0%-60.7%
3 Year-89.8%-90.3%-75.3%-77.6%-60.3%-64.4%
5 Year-85.7%-86.6%-70.3%-74.9%-51.7%-59.4%

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

Valuation

Is CES Energy Solutions undervalued compared to its fair value and its price relative to the market?

0.4x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CEU (CA$0.7) is trading above our estimate of fair value (CA$0.41)

Significantly Below Fair Value: CEU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CEU is unprofitable, so we can't compare its PE Ratio to the CA Energy Services industry average.

PE vs Market: CEU is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CEU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CEU's PB Ratio (0.4x) is in line with the CA Energy Services industry average.


Next Steps

Future Growth

How is CES Energy Solutions forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

81.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CEU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CEU's is expected to become profitable in the next 3 years.

Revenue vs Market: CEU's revenue (7% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: CEU's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CEU is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has CES Energy Solutions performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEU is currently unprofitable.

Growing Profit Margin: CEU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CEU is unprofitable, but has reduced losses over the past 5 years at a rate of 0.5% per year.

Accelerating Growth: Unable to compare CEU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CEU is unprofitable, making it difficult to compare its past year earnings growth to the Energy Services industry (-5.1%).


Return on Equity

High ROE: CEU has a negative Return on Equity (-49.32%), as it is currently unprofitable.


Next Steps

Financial Health

How is CES Energy Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: CEU's short term assets (CA$355.9M) exceed its short term liabilities (CA$77.9M).

Long Term Liabilities: CEU's short term assets (CA$355.9M) exceed its long term liabilities (CA$306.5M).


Debt to Equity History and Analysis

Debt Level: CEU's debt to equity ratio (60.9%) is considered high.

Reducing Debt: CEU's debt to equity ratio has increased from 51.1% to 60.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CEU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CEU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 7.7% per year.


Next Steps

Dividend

What is CES Energy Solutions's current dividend yield, its reliability and sustainability?

1.02%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CEU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CEU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CEU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CEU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CEU is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CEU's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Tom Simons (50 yo)

14.58yrs

Tenure

CA$3,496,778

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 ($USD2.62M) is above average for companies of similar size in the Canadian market ($USD174.80K).

Compensation vs Earnings: Tom's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Simons
President14.58yrsCA$3.50m1.11%
CA$ 2.0m
Anthony Aulicino
Chief Financial Officer2yrsCA$1.86m0.063%
CA$ 116.1k
Kenneth Zinger
COO & President of Canadian Operations14.75yrsCA$2.72m0.65%
CA$ 1.2m
Vernon Disney
President of US Production Chemicals2.17yrsCA$2.74m0.91%
CA$ 1.7m
Richard Baxter
President of US Drilling Fluids6.75yrsCA$2.71m0.17%
CA$ 303.3k
Matthew Bell
Director of Legalno datano datano data
James Pasieka
Corporate Secretary6.75yrsno data0.016%
CA$ 28.9k

6.8yrs

Average Tenure

Experienced Management: CEU's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Simons
President14.58yrsCA$3.50m1.11%
CA$ 2.0m
Spencer Armour
Independent Director1.83yrsCA$75.00k0.030%
CA$ 54.4k
John Hooks
Independent Director14.83yrsCA$157.50k0.32%
CA$ 595.6k
Kyle Kitagawa
Independent Chairman of the Boardno dataCA$258.00k0.62%
CA$ 1.1m
Stella Cosby
Independent Director3.08yrsCA$154.00k0.048%
CA$ 87.7k
Philip Scherman
Independent Director5.42yrsCA$162.50k0.069%
CA$ 125.9k

5.4yrs

Average Tenure

62yo

Average Age

Experienced Board: CEU's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CEU insiders have bought more shares than they have sold 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$183.798m
  • Shares outstanding: 262.57m
  • Website: https://www.cesenergysolutions.com

Number of Employees


Location

  • CES Energy Solutions Corp.
  • 332-6th Avenue SW
  • Suite 1400
  • Calgary
  • Alberta
  • T2P 0B2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEUTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2006
CESD.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2006
7C4DB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2006

Biography

CES Energy Solutions Corp., together with its subsidiaries, provides consumable chemical solutions throughout the life-cycle of the oilfield. It provides solutions at the drill-bit, at the point of complet ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:24
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.