CES Energy Solutions (CEU) AI Stock Analysis

• Market Cap: C$3.48B
• Dividend Yield: 1.29%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.61
• Revenue Growth: 5.79%
• EPS Growth: -5.08%
• Country: CA
• Employees: 2,532
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.18
• Shares Outstanding: 209,909,640
• 10 Day Avg. Volume: 823,254
• 30 Day Avg. Volume: 1,062,624
• PEG Ratio: 0.37
• Price to Book (P/B): 2.83
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 10.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$15.50
• Price Target Upside: -9.29% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): C$2.63B

• Rating: 75 Outperform
• Price Target: C$17.00 ▼(-0.53% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong revenue growth and solid profitability, tempered by weakening cash flow and cash conversion. Technicals are supportive with a strong longer-term uptrend and positive momentum signals, while valuation is reasonable. Positive corporate updates (record quarter, dividend, and financing actions to improve capital structure) add incremental support.

Positive Factors

Strong revenue growth & profitability

Sustained, large top-line growth with healthy gross and EBITDA margins indicates the company is successfully scaling product sales while preserving operational economics. This supports durable cash generation potential, reinvestment capacity, and competitive positioning in its markets over the next several quarters.

Durable business model: specialty consumables + services

A business built on formulated, consumable chemistries plus on-site technical services creates recurring, per-job revenue and sticky customer relationships. Vertical manufacturing, distribution and field support improve customer lock-in and allow scale procurement advantages that sustain margins across cycles.

Capital actions to shore up balance sheet

Active financing and liability management that retires or refinances debt and expands liquidity reduces near-term refinancing risk and supports growth spending. These structural steps strengthen capital flexibility and can lower long-term funding costs if executed as described.

Negative Factors

Weaker cash conversion

Declining operating and free cash flow versus prior year and weak cash conversion mean earnings are not translating into commensurate cash. That constrains the firm's ability to delever, fund capex organically, or sustain distributions without continued access to external financing.

Rising leverage reduces flexibility

An upward trend in debt, even from moderate levels, increases interest and refinancing exposure and limits strategic optionality. If industry conditions soften, higher leverage would constrain the company's ability to absorb shocks, invest opportunistically, or maintain payout policies.

High exposure to upstream activity and commodity cycles

Revenue and utilization are structurally tied to upstream capex and commodity-driven activity; this cyclicality can produce sustained swings in volumes and pricing. Such exposure makes long-term revenue and margin predictability harder and forces the business to maintain cost and working-capital flexibility.

CES Energy Solutions Business Overview & Revenue Model

Company Description

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. It also designs and implements drilling fluid systems and completion solutions for oil and gas producers; 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; and operates trucks and trailers to transport products in the oil and gas industry. In addition, the company provides environmental consulting, water management services, and drilling fluids waste disposal services primarily to oil and gas producers; and laboratory services. 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.

How the Company Makes Money

CES Energy Solutions generates revenue through the sale of its specialized chemical products and services to customers in the oil and gas industry. The company’s key revenue streams include the provision of drilling fluids, production chemicals, and environmental services. These products are crucial for efficient oil and gas extraction, as they help in minimizing operational challenges and maximizing output. CES Energy Solutions also benefits from strategic partnerships and long-term contracts with major oil and gas producers, which ensure a steady flow of income. The company's earnings are further bolstered by its commitment to innovation, continuously investing in research and development to create more effective solutions tailored to the evolving needs of its clients.

CES Energy Solutions Financial Statement Overview

Summary

Strong top-line momentum (TTM revenue up ~69%) and healthy profitability (gross margin ~24%, EBITDA margin ~15%, net margin ~7%), but margin easing and slightly lower net income vs 2024. Balance sheet is generally reasonable with strong ROE (~22%) but rising debt vs 2024 reduces flexibility. Cash flow is the key drag: operating and free cash flow are down vs 2024, and FCF covers only ~58% of net income, signaling weaker cash conversion.

Income Statement

TTM (Trailing-Twelve-Months) revenue is up sharply (about 69% growth) and profitability remains solid, with gross margin around 24%, EBITDA margin around 15%, and net margin around 7%. However, margins have eased versus 2024 (net margin ~8% then ~7% TTM) and net income is slightly lower than 2024, suggesting some recent cost pressure or mix impact despite strong top-line momentum.

Balance Sheet

Leverage is moderate with debt at roughly 0.62x equity in TTM (Trailing-Twelve-Months), and returns on equity are strong (~22% TTM), reflecting good profitability. The main watch-out is debt trending higher versus 2024 alongside a modest dip in equity, which reduces balance-sheet flexibility if industry conditions weaken.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months) with operating cash flow (~$240M) and free cash flow (~$140M), but both are down versus 2024 and free cash flow growth is meaningfully negative. Cash conversion is also weaker recently, with free cash flow covering only ~58% of net income TTM, indicating higher working-capital needs and/or elevated capital spending relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.44B	2.35B	2.16B	1.92B	1.20B	888.05M
Gross Profit	576.69M	581.08M	479.35M	396.95M	261.08M	165.62M
EBITDA	368.64M	355.93M	300.59M	230.34M	141.86M	-178.42M
Net Income	178.28M	191.11M	154.64M	95.22M	49.88M	-222.90M
Balance Sheet
Total Assets	1.62B	1.54B	1.38B	1.41B	1.09B	857.89M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	0.00	0.00	18.25M
Total Debt	498.64M	436.78M	463.72M	551.13M	437.20M	317.10M
Total Liabilities	815.27M	725.10M	719.27M	801.95M	600.92M	402.23M
Stockholders Equity	808.22M	814.23M	658.00M	609.05M	486.68M	455.66M
Cash Flow
Free Cash Flow	140.28M	211.55M	227.88M	-55.91M	-101.83M	130.92M
Operating Cash Flow	239.96M	304.66M	301.78M	-2.74M	-74.41M	156.68M
Investing Cash Flow	-105.15M	-95.22M	-71.83M	-46.79M	-12.76M	-16.89M
Financing Cash Flow	-134.81M	-209.45M	-229.95M	49.53M	68.91M	-120.14M

CES Energy Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CEU, the sentiment is Positive. The current price of 17.09 is above the 20-day moving average (MA) of 16.09, above the 50-day MA of 14.32, and above the 200-day MA of 10.04, indicating a bullish trend. The MACD of 0.74 indicates Positive momentum. The RSI at 70.91 is Negative, neither overbought nor oversold. The STOCH value of 70.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CEU.

CES Energy Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOT	78 Outperform	C$690.17M	9.22	10.51%	2.57%	15.58%	47.55%
CEU	75 Outperform	C$3.48B	12.65	22.50%	1.29%	5.79%	-5.08%
EFX	75 Outperform	C$3.76B	29.07	12.48%	0.74%	5.92%	―
TCW	75 Outperform	C$1.40B	10.23	18.06%	3.57%	9.24%	6.35%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
TVK	54 Neutral	C$3.05B	26.86	15.90%	0.43%	50.38%	25.63%

CES Energy Solutions Corporate Events

CES Energy Solutions Reports Record Q3 2025 Results and Declares Dividend

CES Energy Solutions Corp. reported strong financial results for Q3 2025, achieving record revenue of $623.2 million and an adjusted EBITDAC of $103.3 million. The company’s performance was driven by a favorable product mix, recent acquisitions, and increased demand for its products, particularly in the US and Canadian markets. CES also declared a quarterly dividend and highlighted its strong market share in both regions. The company’s strategic positioning and financial performance underscore its ability to generate surplus free cash flow and maintain a conservative leverage ratio, positioning it well for future growth.

The most recent analyst rating on (TSE:CEU) stock is a Buy with a C$12.50 price target. To see the full list of analyst forecasts on CES Energy Solutions stock, see the TSE:CEU Stock Forecast page.