CES Energy Solutions (CEU) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: 1.84%
• Average Volume (3M): 553.53K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.06
• Revenue Growth: 8.36%
• EPS Growth: 2.09%
• Country: CA
• Employees: 2,532
• Sector: Energy
• Sector Strength: 49
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.23
• Shares Outstanding: 219,037,280
• 10 Day Avg. Volume: 583,173
• 30 Day Avg. Volume: 553,526
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 3.40
• Enterprise Value/Ebitda: 5.32
• 1Y Price Target: $10.98
• Price Target Upside: 36.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: ―

CES Energy Solutions demonstrates robust financial performance with solid revenue growth and improved margins, supported by a strong earnings call. Despite attractive valuation and enhanced liquidity from recent corporate events, technical indicators suggest caution due to bearish trends. The stock presents a balanced opportunity with both strengths and risks.

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

CES Energy Solutions shows strong revenue growth and improved profitability, with a notable recovery in its financial performance. The balance sheet indicates better leverage management, though high debt levels remain a concern. Cash flow improvements support operational stability.

Income Statement

CES Energy Solutions has demonstrated strong revenue growth, with a significant increase from $888 million in 2020 to $2.35 billion in 2024. Gross profit margin improved from 18.6% in 2020 to 24.7% in 2024, indicating better efficiency in managing costs. Net profit margin also increased from negative in 2020 to 8.1% in 2024. EBIT and EBITDA margins showed positive trends, reflecting improved operational performance. These strengths highlight the company's robust recovery and growth trajectory.

Balance Sheet

The debt-to-equity ratio has been decreasing from 0.89 in 2020 to 0.54 in 2024, signifying improved leverage management. Return on equity has increased, reaching 23.5% in 2024, indicating efficient use of equity to generate profits. The equity ratio has been stable, showcasing a balanced financial structure. However, the company still maintains a significant level of debt, which could pose risks if growth falters.

Cash Flow

Operating cash flow has shown a positive trend, with a notable increase from negative in 2021 to $304 million in 2024. Free cash flow also improved, reflecting strong cash generation capabilities. The operating cash flow to net income ratio indicates healthy cash conversion. However, fluctuations in free cash flow in earlier years suggest some volatility in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.42B	2.35B	2.16B	1.92B	1.20B	888.05M
Gross Profit	574.98M	581.08M	479.35M	396.95M	261.08M	165.62M
EBITDA	368.22M	357.94M	307.76M	232.69M	141.86M	-177.18M
Net Income	184.43M	191.11M	154.64M	95.22M	49.88M	-222.90M
Balance Sheet
Total Assets	1.54B	1.54B	1.38B	1.41B	1.09B	857.89M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-59.65M	-42.02M	18.25M
Total Debt	470.65M	436.78M	463.72M	551.13M	437.20M	317.10M
Total Liabilities	745.46M	725.10M	719.27M	801.95M	600.92M	402.23M
Stockholders Equity	789.59M	814.23M	658.00M	609.05M	486.68M	455.66M
Cash Flow
Free Cash Flow	153.35M	211.55M	227.88M	-55.91M	-101.83M	130.92M
Operating Cash Flow	261.18M	304.66M	301.78M	-2.74M	-74.41M	156.68M
Investing Cash Flow	-120.64M	-95.22M	-71.83M	-46.79M	-12.76M	-16.89M
Financing Cash Flow	-140.53M	-209.45M	-229.95M	49.53M	68.91M	-120.14M

CES Energy Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.06 is above the 20-day moving average (MA) of 7.58, above the 50-day MA of 7.22, and above the 200-day MA of 7.72, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 80.18 is Negative, 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	79 Outperform	C$457.76M	7.11	11.66%	3.01%	14.74%	62.76%
CEU	76 Outperform	$1.72B	9.61	23.31%	1.84%	8.36%	2.09%
PSI	70 Outperform	C$875.06M	12.06	15.38%	4.64%	9.33%	-36.51%
Sector *	65 Neutral	$14.81B	7.14	3.01%	5.53%	4.29%	-62.49%
CFW	52 Neutral	C$288.59M	29.62	1.53%	―	-4.63%	-92.13%
TOLWF	―	$735.60M	10.53	20.50%	3.30%	―	―
STEP	54 Neutral	C$309.71M	151.92	-5.02%	―	-6.25%	-129.86%

CES Energy Solutions Corporate Events

CES Energy Solutions Expands Credit Facility to C$550 Million

CES Energy Solutions Corp. has announced an amendment and extension to its credit facility, increasing the total size to approximately C$550 million. This upsized facility, led by the Bank of Nova Scotia and a syndicate of major banks, provides CES with enhanced liquidity and flexibility to manage its capital and refinance senior notes. The extension reflects CES’s increased scale and credit profile, offering strategic financial options over the coming years.

Spark’s Take on TSE:CEU Stock

According to Spark, TipRanks’ AI Analyst, TSE:CEU is a Outperform.

CES Energy Solutions demonstrates a robust financial performance with significant revenue and profitability improvements. The company’s valuation is appealing, with a low P/E ratio and a strong dividend yield. However, technical indicators point to potential short-term bearish trends, warranting caution. The positive guidance and strategic actions discussed in the earnings call bolster confidence in future growth, despite some challenges. Overall, the stock presents a balanced opportunity with both strengths and risks.

To see Spark’s full report on TSE:CEU stock, click here.

CES Energy Solutions to Discuss Q1 2025 Financial Results in Upcoming Conference Call

CES Energy Solutions Corp. announced it will host a conference call on May 9, 2025, to discuss its Q1 2025 financial results, which will be released the previous day. This event will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders’ perspectives on CES’s market positioning and operational strategies.

Spark’s Take on TSE:CEU Stock

According to Spark, TipRanks’ AI Analyst, TSE:CEU is a Outperform.

CES Energy Solutions is on a positive growth trajectory, driven by strong financial performance and strategic actions. However, technical indicators show bearish trends, and debt levels need careful management. Positive earnings call results and valuation suggest potential upside but with caution due to market conditions.

To see Spark’s full report on TSE:CEU stock, click here.

CES Energy Solutions to Announce 2024 Financial Results in Upcoming Conference Call

CES Energy Solutions Corp. announced a conference call for March 7, 2025, to discuss its financial results for Q4 and the year ended December 31, 2024, to be released after the market closes the previous day. The call, hosted by President and CEO Ken Zinger, will provide insights into the company’s performance and its strategic positioning, potentially impacting stakeholders’ views on its market standing and operational efficiency.