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CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis

NASDAQ:CECO - Nasdaq - US1251411013 - Common Stock - Currency: USD

24.145  -0.73 (-2.95%)

Fundamental Rating

4

CECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of CECO while its profitability can be described as average. CECO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year CECO was profitable.
In the past year CECO had a positive cash flow from operations.
CECO had positive earnings in each of the past 5 years.
CECO had a positive operating cash flow in each of the past 5 years.
CECO Yearly Net Income VS EBIT VS OCF VS FCFCECO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.71%, CECO is in line with its industry, outperforming 56.10% of the companies in the same industry.
CECO has a Return On Equity (5.23%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.99%, CECO is in line with its industry, outperforming 53.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CECO is below the industry average of 10.06%.
Industry RankSector Rank
ROA 1.71%
ROE 5.23%
ROIC 5.99%
ROA(3y)2.43%
ROA(5y)1.92%
ROE(3y)6.31%
ROE(5y)4.73%
ROIC(3y)6.39%
ROIC(5y)5.34%
CECO Yearly ROA, ROE, ROICCECO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10 -15 -20

1.3 Margins

CECO has a Profit Margin (2.32%) which is comparable to the rest of the industry.
CECO's Profit Margin has declined in the last couple of years.
CECO has a Operating Margin (7.45%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CECO has grown nicely.
CECO has a Gross Margin (35.37%) which is in line with its industry peers.
CECO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.45%
PM (TTM) 2.32%
GM 35.37%
OM growth 3Y24.13%
OM growth 5Y5.02%
PM growth 3Y75.18%
PM growth 5Y-14.81%
GM growth 3Y4.29%
GM growth 5Y1.11%
CECO Yearly Profit, Operating, Gross MarginsCECO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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2

2. Health

2.1 Basic Checks

CECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CECO has more shares outstanding
The number of shares outstanding for CECO has been reduced compared to 5 years ago.
CECO has a worse debt/assets ratio than last year.
CECO Yearly Shares OutstandingCECO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
CECO Yearly Total Debt VS Total AssetsCECO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

CECO has an Altman-Z score of 2.08. This is not the best score and indicates that CECO is in the grey zone with still only limited risk for bankruptcy at the moment.
CECO has a Altman-Z score (2.08) which is comparable to the rest of the industry.
CECO has a debt to FCF ratio of 29.57. This is a negative value and a sign of low solvency as CECO would need 29.57 years to pay back of all of its debts.
CECO's Debt to FCF ratio of 29.57 is on the low side compared to the rest of the industry. CECO is outperformed by 60.98% of its industry peers.
CECO has a Debt/Equity ratio of 0.88. This is a neutral value indicating CECO is somewhat dependend on debt financing.
CECO has a worse Debt to Equity ratio (0.88) than 62.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 29.57
Altman-Z 2.08
ROIC/WACC0.72
WACC8.3%
CECO Yearly LT Debt VS Equity VS FCFCECO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.35 indicates that CECO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.35, CECO is doing worse than 60.98% of the companies in the same industry.
A Quick Ratio of 0.89 indicates that CECO may have some problems paying its short term obligations.
CECO's Quick ratio of 0.89 is on the low side compared to the rest of the industry. CECO is outperformed by 75.61% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 0.89
CECO Yearly Current Assets VS Current LiabilitesCECO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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6

3. Growth

3.1 Past

CECO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.00%.
The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
CECO shows a small growth in Revenue. In the last year, the Revenue has grown by 2.39%.
CECO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.29% yearly.
EPS 1Y (TTM)-4%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%-3.57%
Revenue 1Y (TTM)2.39%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%3.16%

3.2 Future

CECO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 40.31% yearly.
CECO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.37% yearly.
EPS Next Y61.26%
EPS Next 2Y48.34%
EPS Next 3Y40.31%
EPS Next 5YN/A
Revenue Next Year24.49%
Revenue Next 2Y16.67%
Revenue Next 3Y14.37%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CECO Yearly Revenue VS EstimatesCECO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
CECO Yearly EPS VS EstimatesCECO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.53, CECO can be considered very expensive at the moment.
CECO's Price/Earnings ratio is in line with the industry average.
CECO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.98, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.79, which indicates a rather expensive current valuation of CECO.
Based on the Price/Forward Earnings ratio, CECO is valued a bit cheaper than 65.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CECO to the average of the S&P500 Index (22.66), we can say CECO is valued inline with the index average.
Industry RankSector Rank
PE 33.53
Fwd PE 20.79
CECO Price Earnings VS Forward Price EarningsCECO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CECO's Enterprise Value to EBITDA is on the same level as the industry average.
63.41% of the companies in the same industry are cheaper than CECO, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 113.22
EV/EBITDA 18.74
CECO Per share dataCECO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

CECO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CECO's earnings are expected to grow with 40.31% in the coming years.
PEG (NY)0.55
PEG (5Y)8.25
EPS Next 2Y48.34%
EPS Next 3Y40.31%

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0

5. Dividend

5.1 Amount

CECO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CECO ENVIRONMENTAL CORP

NASDAQ:CECO (3/3/2025, 3:53:35 PM)

24.145

-0.73 (-2.95%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)02-25 2025-02-25/bmo
Earnings (Next)04-28 2025-04-28/bmo
Inst Owners88.76%
Inst Owner Change-99.96%
Ins Owners9%
Ins Owner Change0.02%
Market Cap844.59M
Analysts80
Price Target36.92 (52.91%)
Short Float %6.29%
Short Ratio6.61
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-13.65%
Min EPS beat(2)-28.66%
Max EPS beat(2)1.35%
EPS beat(4)2
Avg EPS beat(4)-1.36%
Min EPS beat(4)-28.66%
Max EPS beat(4)23.84%
EPS beat(8)5
Avg EPS beat(8)3.75%
EPS beat(12)9
Avg EPS beat(12)32.85%
EPS beat(16)11
Avg EPS beat(16)19.86%
Revenue beat(2)0
Avg Revenue beat(2)-8.39%
Min Revenue beat(2)-14.09%
Max Revenue beat(2)-2.69%
Revenue beat(4)0
Avg Revenue beat(4)-7.86%
Min Revenue beat(4)-14.09%
Max Revenue beat(4)-2.69%
Revenue beat(8)4
Avg Revenue beat(8)-0.91%
Revenue beat(12)8
Avg Revenue beat(12)2.96%
Revenue beat(16)10
Avg Revenue beat(16)2.37%
PT rev (1m)0%
PT rev (3m)8.6%
EPS NQ rev (1m)-13.04%
EPS NQ rev (3m)28.21%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.19%
Revenue NQ rev (1m)2.17%
Revenue NQ rev (3m)5.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
Industry RankSector Rank
PE 33.53
Fwd PE 20.79
P/S 1.51
P/FCF 113.22
P/OCF 34.02
P/B 3.41
P/tB N/A
EV/EBITDA 18.74
EPS(TTM)0.72
EY2.98%
EPS(NY)1.16
Fwd EY4.81%
FCF(TTM)0.21
FCFY0.88%
OCF(TTM)0.71
OCFY2.94%
SpS15.95
BVpS7.08
TBVpS-3.02
PEG (NY)0.55
PEG (5Y)8.25
Profitability
Industry RankSector Rank
ROA 1.71%
ROE 5.23%
ROCE 8.07%
ROIC 5.99%
ROICexc 6.46%
ROICexgc 24.64%
OM 7.45%
PM (TTM) 2.32%
GM 35.37%
FCFM 1.34%
ROA(3y)2.43%
ROA(5y)1.92%
ROE(3y)6.31%
ROE(5y)4.73%
ROIC(3y)6.39%
ROIC(5y)5.34%
ROICexc(3y)7.22%
ROICexc(5y)6.02%
ROICexgc(3y)29.86%
ROICexgc(5y)24.41%
ROCE(3y)8.61%
ROCE(5y)7.19%
ROICexcg growth 3Y24.08%
ROICexcg growth 5Y-0.02%
ROICexc growth 3Y22.84%
ROICexc growth 5Y2.33%
OM growth 3Y24.13%
OM growth 5Y5.02%
PM growth 3Y75.18%
PM growth 5Y-14.81%
GM growth 3Y4.29%
GM growth 5Y1.11%
F-Score5
Asset Turnover0.73
Health
Industry RankSector Rank
Debt/Equity 0.88
Debt/FCF 29.57
Debt/EBITDA 3.9
Cap/Depr 119.59%
Cap/Sales 3.11%
Interest Coverage 3.12
Cash Conversion 44.25%
Profit Quality 57.58%
Current Ratio 1.35
Quick Ratio 0.89
Altman-Z 2.08
F-Score5
WACC8.3%
ROIC/WACC0.72
Cap/Depr(3y)72.83%
Cap/Depr(5y)56.98%
Cap/Sales(3y)1.82%
Cap/Sales(5y)1.5%
Profit Quality(3y)163.14%
Profit Quality(5y)251.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-4%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%-3.57%
EPS Next Y61.26%
EPS Next 2Y48.34%
EPS Next 3Y40.31%
EPS Next 5YN/A
Revenue 1Y (TTM)2.39%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%3.16%
Revenue Next Year24.49%
Revenue Next 2Y16.67%
Revenue Next 3Y14.37%
Revenue Next 5YN/A
EBIT growth 1Y4.67%
EBIT growth 3Y48.77%
EBIT growth 5Y15.83%
EBIT Next Year113.39%
EBIT Next 3Y43.22%
EBIT Next 5YN/A
FCF growth 1Y-79.43%
FCF growth 3Y-11.27%
FCF growth 5Y10.3%
OCF growth 1Y-44.39%
OCF growth 3Y23.13%
OCF growth 5Y19.4%