CES Energy Solutions: Solid Q4 Report Prompts Upgrade To Strong Buy

2025-03-13 07:30:00 ET

Summary

• CES Energy Solutions reported a solid Q4 but missed EPS estimates by $0.02; stock is down 29% YTD but up 90% YoY.
• CES leads the market in drilling fluids and specialty chemicals in Canada and the U.S., with strong EBITDAC margins and free cash flow.
• The company is trading at 6.3X EV/EBITDA, with potential upside to $9.15 USD per share, making it a Strong Buy.
• Risks include a shrunken rig count, but CES's technology and focus on completions mitigate this concern.

Introduction

CES Energy Solutions ( OTCPK:CESDF ) (CEU:CA) reported a solid quarter for Q4, but missed analyst estimates for EPS by $-0.02. Year to date, they are down 29% to $4.84 at the close Friday, but still up about 90% YoY. A pretty good performance in their Canadian cohort, still well in positive territory for price return....

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