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CEU

CES Energy Solutions TSX:CEU Stock Report

Last Price

CA$2.65

Market Cap

CA$678.8m

7D

2.3%

1Y

72.1%

Updated

10 Aug, 2022

Data

Company Financials +
CEU fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends2/6

CEU Stock Overview

CES Energy Solutions Corp., together with its subsidiaries, designs, implements, and manufactures advanced consumable fluids and specialty chemicals.

CES Energy Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CES Energy Solutions
Historical stock prices
Current Share PriceCA$2.65
52 Week HighCA$3.11
52 Week LowCA$1.36
Beta2.6
1 Month Change16.23%
3 Month Change13.73%
1 Year Change72.08%
3 Year Change48.88%
5 Year Change-49.81%
Change since IPO137.31%

Recent News & Updates

Shareholder Returns

CEUCA Energy ServicesCA Market
7D2.3%-0.7%1.9%
1Y72.1%21.3%-1.1%

Return vs Industry: CEU exceeded the Canadian Energy Services industry which returned 22.2% over the past year.

Return vs Market: CEU exceeded the Canadian Market which returned -2% over the past year.

Price Volatility

Is CEU's price volatile compared to industry and market?
CEU volatility
CEU Average Weekly Movement9.0%
Energy Services Industry Average Movement8.7%
Market Average Movement10.8%
10% most volatile stocks in CA Market19.4%
10% least volatile stocks in CA Market4.3%

Stable Share Price: CEU is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CEU's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19861,812Ken Zingerhttps://www.cesenergysolutions.com

CES Energy Solutions Corp., together with its subsidiaries, designs, implements, and manufactures advanced consumable fluids and specialty chemicals. It provides solutions for drill-bit, point of completion and stimulation, wellhead and pump-jack, and pipeline and midstream markets. The company’s solutions include corrosion inhibitors, demulsifiers, H2S scavengers, paraffin control products, surfactants, scale inhibitors, biocides, and other specialty products.

CES Energy Solutions Fundamentals Summary

How do CES Energy Solutions's earnings and revenue compare to its market cap?
CEU fundamental statistics
Market CapCA$678.82m
Earnings (TTM)CA$55.01m
Revenue (TTM)CA$1.34b

12.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEU income statement (TTM)
RevenueCA$1.34b
Cost of RevenueCA$1.06b
Gross ProfitCA$276.15m
Other ExpensesCA$221.14m
EarningsCA$55.01m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)0.21
Gross Margin20.65%
Net Profit Margin4.11%
Debt/Equity Ratio89.6%

How did CEU perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is CEU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CEU?

Other financial metrics that can be useful for relative valuation.

CEU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA9.2x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does CEU's PE Ratio compare to its peers?

CEU PE Ratio vs Peers
The above table shows the PE ratio for CEU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.5x
TCW Trican Well Service
25.7x37.7%CA$863.4m
CMG Computer Modelling Group
18.9x10.0%CA$347.8m
NOA North American Construction Group
8.3x11.9%CA$416.9m
TVK TerraVest Industries
13.1xn/aCA$432.6m
CEU CES Energy Solutions
12.3x35.8%CA$678.8m

Price-To-Earnings vs Peers: CEU is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (16.5x).


Price to Earnings Ratio vs Industry

How does CEU's PE Ratio compare vs other companies in the North American Energy Services Industry?

Price-To-Earnings vs Industry: CEU is good value based on its Price-To-Earnings Ratio (12.3x) compared to the Canadian Energy Services industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is CEU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CEU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: CEU is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).


Share Price vs Fair Value

What is the Fair Price of CEU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CEU (CA$2.65) is trading below our estimate of fair value (CA$10.7)

Significantly Below Fair Value: CEU is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is CES Energy Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEU's forecast earnings growth (35.8% per year) is above the savings rate (1.6%).

Earnings vs Market: CEU's earnings (35.8% per year) are forecast to grow faster than the Canadian market (7.8% per year).

High Growth Earnings: CEU's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CEU's revenue (10.3% per year) is forecast to grow faster than the Canadian market (6.3% per year).

High Growth Revenue: CEU's revenue (10.3% 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 (18.5%).


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-16.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEU has a high level of non-cash earnings.

Growing Profit Margin: CEU's current net profit margins (4.1%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: CEU has become profitable over the past 5 years, growing earnings by -16.9% per year.

Accelerating Growth: CEU's earnings growth over the past year (592.9%) exceeds its 5-year average (-16.9% per year).

Earnings vs Industry: CEU earnings growth over the past year (592.9%) exceeded the Energy Services industry -8.8%.


Return on Equity

High ROE: CEU's Return on Equity (11.4%) is considered low.


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Financial Health

How is CES Energy Solutions's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CEU's short term assets (CA$694.7M) exceed its short term liabilities (CA$208.0M).

Long Term Liabilities: CEU's short term assets (CA$694.7M) exceed its long term liabilities (CA$469.7M).


Debt to Equity History and Analysis

Debt Level: CEU's net debt to equity ratio (87.1%) is considered high.

Reducing Debt: CEU's debt to equity ratio has increased from 58.3% to 89.6% over the past 5 years.

Debt Coverage: CEU's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CEU's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CEU's dividend (2.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.93%).

High Dividend: CEU's dividend (2.42%) is low compared to the top 25% of dividend payers in the Canadian market (5.39%).


Stability and Growth of Payments

Stable Dividend: CEU's dividend payments have been volatile in the past 10 years.

Growing Dividend: CEU's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.2%), CEU's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: CEU is paying a dividend but the company has no free cash flows.


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Management

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

3.8yrs

Average management tenure


CEO

Ken Zinger

0.83

Tenure

CA$3,395,786

Compensation

Mr. Kenneth E. Zinger, also known as Ken, has been President and Chief Executive Officer at CES Energy Solutions Corp. since October 15, 2021 and also has been its Director since October 29, 2021. He serve...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD2.66M) is above average for companies of similar size in the Canadian market ($USD1.19M).

Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CEU's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CEU's board of directors are considered experienced (4.3 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 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
  • Implied Market Cap: CA$678.821m
  • Shares outstanding: 256.16m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.