TSX:CEU

Stock Analysis Report

CES Energy Solutions

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.


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


Market Performance


7 Day Return

-0.5%

CEU

-0.7%

CA Energy Services

1.3%

CA Market


1 Year Return

-53.4%

CEU

-32.5%

CA Energy Services

-0.1%

CA Market

CEU underperformed the Energy Services industry which returned -32.4% over the past year.

CEU underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

CEUIndustryMarket
7 Day-0.5%-0.7%1.3%
30 Day-0.5%4.6%4.2%
90 Day-12.0%-11.2%1.6%
1 Year-52.4%-53.4%-30.6%-32.5%3.4%-0.1%
3 Year-56.2%-57.6%-28.2%-33.5%19.1%8.4%
5 Year-75.6%-78.2%-69.2%-72.5%23.2%5.7%

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

1 month ago | Simply Wall St

Read This Before Buying CES Energy Solutions Corp. (TSE:CEU) For Its Dividend

Valuation

Is CES Energy Solutions undervalued based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CES Energy Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).

CES Energy Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CES Energy Solutions is overvalued based on earnings compared to the CA Energy Services industry average.

CES Energy Solutions is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

CES Energy Solutions is good value based on expected growth next year.


Price Based on Value of Assets

CES Energy Solutions is good value based on assets compared to the CA Energy Services industry average.


Next Steps

Future Growth

How is CES Energy Solutions expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CES Energy Solutions's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

CES Energy Solutions's earnings are expected to grow significantly at over 20% yearly.

CES Energy Solutions's revenue growth is positive but not above the Canada market average.

CES Energy Solutions's earnings growth is expected to exceed the Canada market average.

CES Energy Solutions's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CES Energy Solutions will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

5.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

CES Energy Solutions's year on year earnings growth rate has been positive over the past 5 years.

CES Energy Solutions's 1-year earnings growth is negative, it can't be compared to the 5-year average.

CES Energy Solutions's 1-year earnings growth is negative, it can't be compared to the CA Energy Services industry average.


Return on Equity

CES Energy Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CES Energy Solutions used its assets less efficiently than the CA Energy Services industry average last year based on Return on Assets.


Return on Capital Employed

CES Energy Solutions has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is CES Energy Solutions's financial position?


Financial Position Analysis

CES Energy Solutions is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CES Energy Solutions's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CES Energy Solutions's level of debt (58%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (83.8% vs 58% today).

Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.3x debt.


Next Steps

Dividend

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

2.93%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase CES Energy Solutions before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

CES Energy Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

CES Energy Solutions's dividend is below the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of CES Energy Solutions's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Tom Simons (49yo)

13.5yrs

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

Tom's remuneration is higher than average for companies of similar size in Canada.

Tom's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.7yrs

Average Tenure

The average tenure for the CES Energy Solutions management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.0yrs

Average Tenure

61yo

Average Age

The tenure for the CES Energy Solutions board of directors is about average.


Insider Trading

More shares have been bought than sold by CES Energy Solutions individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyCA$7,06028 Aug 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max PriceCA$1.78
BuyCA$4,02023 Aug 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.01
BuyCA$7,55919 Aug 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max PriceCA$1.96
BuyCA$3,68015 Aug 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$1.84
BuyCA$4,46005 Jul 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.23
BuyCA$4,40026 Jun 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.20
BuyCA$9,11320 Jun 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,000
Max PriceCA$2.29
BuyCA$13,05820 Jun 19
Kenneth Zinger
EntityIndividual
Role
Chief Operating Officer
COO & President of Canadian Drilling Fluids
Shares5,727
Max PriceCA$2.28
BuyCA$6,07519 Jun 19
Kenneth Zinger
EntityIndividual
Role
Chief Operating Officer
COO & President of Canadian Drilling Fluids
Shares2,700
Max PriceCA$2.25
BuyCA$4,38005 Jun 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.19
BuyCA$13,35023 May 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,000
Max PriceCA$2.23
BuyCA$23,79916 May 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares10,000
Max PriceCA$2.45
BuyCA$2,99008 Apr 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceCA$2.99
BuyCA$25,70504 Apr 19
Thomas Simons
EntityIndividual
Role
Chief Executive Officer
President
Shares8,900
Max PriceCA$2.89
SellCA$45,65603 Apr 19
Burton Ahrens
EntityIndividual
Shares16,000
Max PriceCA$2.85
BuyCA$5,58401 Apr 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.81
BuyCA$2,82528 Mar 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceCA$2.83
SellCA$83,24325 Mar 19
Jason Waugh
EntityIndividual
Role
Senior Key Executive
President of Canadian Production Chemicals
Shares29,200
Max PriceCA$2.85
BuyCA$28,90015 Mar 19
Kenneth Zinger
EntityIndividual
Role
Chief Operating Officer
COO & President of Canadian Drilling Fluids
Shares10,000
Max PriceCA$2.89
BuyCA$5,78015 Mar 19
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.89
SellCA$26,47511 Jan 19
Burton Ahrens
EntityIndividual
Shares7,500
Max PriceCA$3.53
BuyCA$5,96028 Dec 18
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$2.98
SellCA$261,85425 Dec 18
John Hooks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares80,000
Max PriceCA$3.28
BuyCA$3,06010 Dec 18
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,000
Max PriceCA$3.06
SellCA$24,24904 Dec 18
Burton Ahrens
EntityIndividual
Shares7,850
Max PriceCA$3.09
SellCA$25,30004 Dec 18
Jason Waugh
EntityIndividual
Role
Senior Key Executive
President of Canadian Production Chemicals
Shares8,500
Max PriceCA$2.98
BuyCA$6,15704 Dec 18
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,000
Max PriceCA$3.12
BuyCA$14,21319 Nov 18
Burton Ahrens
EntityIndividual
Shares4,350
Max PriceCA$3.27
BuyCA$10,29014 Nov 18
Anthony Aulicino
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,000
Max PriceCA$3.43
SellCA$18,31513 Nov 18
Burton Ahrens
EntityIndividual
Shares5,500
Max PriceCA$3.33
SellCA$101,92017 Oct 18
Jason Waugh
EntityIndividual
Role
Senior Key Executive
President of Canadian Production Chemicals
Shares26,000
Max PriceCA$3.92
SellCA$35,78616 Oct 18
Burton Ahrens
EntityIndividual
Shares9,200
Max PriceCA$3.89
SellCA$3,73610 Oct 18
Burton Ahrens
EntityIndividual
Shares950
Max PriceCA$4.02
SellCA$598,31709 Oct 18
Zandee Investments Ltd
EntityCompany
Shares149,400
Max PriceCA$4.00
SellCA$90,00027 Sep 18
Kenneth Zinger
EntityIndividual
Role
Chief Operating Officer
COO & President of Canadian Drilling Fluids
Shares20,000
Max PriceCA$4.50

Ownership Breakdown


Management Team

  • Jim Pasieka (65yo)

    Corporate Secretary

    • Tenure: 5.7yrs
  • Tom Simons (49yo)

    President

    • Tenure: 13.5yrs
    • Compensation: CA$2.96m
  • Ken Zinger

    COO & President of Canadian Drilling Fluids

    • Tenure: 13.7yrs
    • Compensation: CA$2.37m
  • Ken Zandee

    Vice President of Sales & Marketing

    • Tenure: 13.5yrs
    • Compensation: CA$413.17k
  • Jason Waugh

    President of Canadian Production Chemicals

    • Tenure: 1.1yrs
    • Compensation: CA$2.36m
  • Richard Baxter

    President of AES Drilling Fluids

    • Tenure: 5.7yrs
  • Vern Disney

    President of US Production Chemicals

    • Tenure: 1.1yrs
    • Compensation: CA$2.38m
  • Tony Aulicino

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: CA$1.25m

Board Members

  • Spencer Armour (64yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: CA$103.09k
  • John Hooks (61yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$167.00k
  • Kyle Kitagawa (58yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$265.00k
  • Tom Simons (49yo)

    President

    • Tenure: 13.5yrs
    • Compensation: CA$2.96m
  • Rod Carpenter (65yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: CA$164.00k
  • Stella Cosby (61yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: CA$157.50k
  • Phil Scherman (68yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: CA$164.00k

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$540.011m
  • Shares outstanding: 263.42m
  • Website: https://www.cesenergysolutions.com

Number of Employees


Location

  • CES Energy Solutions Corp.
  • 332-6th Avenue
  • 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. The company provides solutions at the drill-bit, at the point o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:05
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.