CECO ENVIRONMENTAL CORP (CECO)
US1251411013 - Common Stock
Taking everything into account, CECO scores 5 out of 10 in our fundamental rating. CECO was compared to 84 industry peers in the Commercial Services & Supplies industry. CECO has a medium profitability rating, but doesn't score so well on its financial health evaluation. CECO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
CECO had positive earnings in the past year.
CECO had a positive operating cash flow in the past year.
Each year in the past 5 years CECO has been profitable.
Each year in the past 5 years CECO had a positive operating cash flow.
1.2 Ratios
CECO has a Return On Assets (1.92%) which is in line with its industry peers.
CECO has a Return On Equity (4.96%) which is in line with its industry peers.
CECO has a better Return On Invested Capital (7.48%) than 67.86% of its industry peers.
CECO had an Average Return On Invested Capital over the past 3 years of 5.28%. This is below the industry average of 9.90%.
The last Return On Invested Capital (7.48%) for CECO is above the 3 year average (5.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.96% | ||
| ROIC | 7.48% |
ROA(3y)1.98%
ROA(5y)2.44%
ROE(3y)4.8%
ROE(5y)5.52%
ROIC(3y)5.28%
ROIC(5y)5%
1.3 Margins
The Profit Margin of CECO (2.16%) is comparable to the rest of the industry.
CECO's Profit Margin has declined in the last couple of years.
The Operating Margin of CECO (7.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CECO has grown nicely.
With a decent Gross Margin value of 35.10%, CECO is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Gross Margin of CECO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.67% | ||
| PM (TTM) | 2.16% | ||
| GM | 35.1% |
OM growth 3Y9.12%
OM growth 5Y11.84%
PM growth 3Y-2.98%
PM growth 5YN/A
GM growth 3Y-1.86%
GM growth 5Y-0.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CECO 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.
The debt/assets ratio for CECO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.89 indicates that CECO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.89, CECO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
CECO has a debt to FCF ratio of 5.62. This is a neutral value as CECO would need 5.62 years to pay back of all of its debts.
CECO has a Debt to FCF ratio of 5.62. This is in the better half of the industry: CECO outperforms 65.48% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that CECO is somewhat dependend on debt financing.
CECO has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: CECO outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 2.89 |
ROIC/WACC0.85
WACC8.79%
2.3 Liquidity
A Current Ratio of 1.30 indicates that CECO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, CECO is doing worse than 65.48% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that CECO may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, CECO is not doing good in the industry: 82.14% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
CECO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.35%.
The Earnings Per Share has been growing by 21.78% on average over the past years. This is a very strong growth
Looking at the last year, CECO shows a quite strong growth in Revenue. The Revenue has grown by 8.96% in the last year.
The Revenue has been growing by 10.07% on average over the past years. This is quite good.
EPS 1Y (TTM)7.35%
EPS 3Y10.23%
EPS 5Y21.78%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y19.91%
Revenue growth 5Y10.07%
Sales Q2Q%-9.29%
3.2 Future
The Earnings Per Share is expected to grow by 25.98% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.57% on average over the next years. This is quite good.
EPS Next Y4.99%
EPS Next 2Y25.17%
EPS Next 3Y25.98%
EPS Next 5YN/A
Revenue Next Year7.33%
Revenue Next 2Y13.39%
Revenue Next 3Y11.57%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.37, which means the current valuation is very expensive for CECO.
Compared to the rest of the industry, the Price/Earnings ratio of CECO is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, CECO is valued a bit more expensive.
CECO is valuated quite expensively with a Price/Forward Earnings ratio of 25.70.
Based on the Price/Forward Earnings ratio, CECO is valued a bit cheaper than 61.90% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CECO to the average of the S&P500 Index (23.82), we can say CECO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.37 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CECO indicates a slightly more expensive valuation: CECO is more expensive than 60.71% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CECO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.93 | ||
| EV/EBITDA | 20.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CECO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CECO's earnings are expected to grow with 25.98% in the coming years.
PEG (NY)8.29
PEG (5Y)1.9
EPS Next 2Y25.17%
EPS Next 3Y25.98%
5. Dividend
5.1 Amount
No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CECO ENVIRONMENTAL CORP
NASDAQ:CECO (11/21/2024, 8:18:55 PM)
After market: 30.2 0 (0%)30.2
+0.23 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.37 | ||
| Fwd PE | 25.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)8.29
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.67% | ||
| PM (TTM) | 2.16% | ||
| GM | 35.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.35%
EPS 3Y10.23%
EPS 5Y
EPS Q2Q%
EPS Next Y4.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.96%
Revenue growth 3Y19.91%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y