CECO ENVIRONMENTAL CORP (CECO)
US1251411013 - Common Stock
Taking everything into account, CECO scores 4 out of 10 in our fundamental rating. CECO was compared to 83 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year CECO was profitable.
CECO had a positive operating cash flow in the past year.
CECO had positive earnings in each of the past 5 years.
In the past 5 years CECO always reported a positive cash flow from operatings.
1.2 Ratios
CECO has a Return On Assets (1.92%) which is in line with its industry peers.
The Return On Equity of CECO (4.96%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 7.48%, CECO is doing good in the industry, outperforming 63.86% 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 10.00%.
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
CECO has a Profit Margin (2.16%) which is in line with its industry peers.
In the last couple of years the Profit Margin of CECO has declined.
With a Operating Margin value of 7.67%, CECO perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
CECO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.10%, CECO perfoms like the industry average, outperforming 59.04% of the companies in the same industry.
CECO's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CECO is destroying value.
The number of shares outstanding for CECO has been increased compared to 1 year ago.
Compared to 5 years ago, CECO has less shares outstanding
Compared to 1 year ago, CECO has a worse debt to assets ratio.
2.2 Solvency
CECO has an Altman-Z score of 2.87. 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 of 2.87. This is comparable to the rest of the industry: CECO outperforms 59.04% of its industry peers.
The Debt to FCF ratio of CECO is 5.62, which is a neutral value as it means it would take CECO, 5.62 years of fcf income to pay off 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 65.06% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that CECO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, CECO is in line with its industry, outperforming 46.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.62 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.84
WACC8.92%
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 63.86% of the companies in the same industry.
CECO has a Quick Ratio of 1.30. This is a bad value and indicates that CECO is not financially healthy enough and could expect problems in meeting its short term obligations.
CECO has a Quick ratio of 0.80. This is amonst the worse of the industry: CECO underperforms 81.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.35% over the past year.
CECO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.78% yearly.
The Revenue has grown by 8.96% in the past year. This is quite good.
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
CECO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.61% yearly.
Based on estimates for the next years, CECO will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
EPS Next Y4.99%
EPS Next 2Y25.17%
EPS Next 3Y25.98%
EPS Next 5Y27.61%
Revenue Next Year7.33%
Revenue Next 2Y13.39%
Revenue Next 3Y11.57%
Revenue Next 5Y11.67%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 40.40, which means the current valuation is very expensive for CECO.
CECO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, CECO is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 25.10, the valuation of CECO can be described as expensive.
60.24% of the companies in the same industry are more expensive than CECO, based on the Price/Forward Earnings ratio.
CECO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.4 | ||
| Fwd PE | 25.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CECO.
The rest of the industry has a similar Price/Free Cash Flow ratio as CECO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.9 | ||
| EV/EBITDA | 19.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CECO does not grow enough to justify the current Price/Earnings ratio.
CECO's earnings are expected to grow with 25.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)8.09
PEG (5Y)1.85
EPS Next 2Y25.17%
EPS Next 3Y25.98%
5. Dividend
5.1 Amount
CECO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CECO ENVIRONMENTAL CORP
NASDAQ:CECO (12/20/2024, 8:01:07 PM)
After market: 29.49 0 (0%)29.49
-0.01 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners77.09%
Inst Owner Change-99.96%
Ins Owners9.06%
Ins Owner Change0.02%
Market Cap1.03B
Analysts81.67
Price Target34 (15.29%)
Short Float %6.67%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-2.41%
Min EPS beat(2)-28.66%
Max EPS beat(2)23.84%
EPS beat(4)2
Avg EPS beat(4)1.7%
Min EPS beat(4)-28.66%
Max EPS beat(4)23.84%
EPS beat(8)5
Avg EPS beat(8)7.52%
EPS beat(12)9
Avg EPS beat(12)34.25%
EPS beat(16)11
Avg EPS beat(16)22.87%
Revenue beat(2)0
Avg Revenue beat(2)-10.01%
Min Revenue beat(2)-14.09%
Max Revenue beat(2)-5.93%
Revenue beat(4)1
Avg Revenue beat(4)-6.49%
Min Revenue beat(4)-14.09%
Max Revenue beat(4)2.78%
Revenue beat(8)5
Avg Revenue beat(8)0.5%
Revenue beat(12)9
Avg Revenue beat(12)3.94%
Revenue beat(16)11
Avg Revenue beat(16)2.77%
PT rev (1m)-0.99%
PT rev (3m)-0.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.4 | ||
| Fwd PE | 25.1 | ||
| P/S | 1.87 | ||
| P/FCF | 42.9 | ||
| P/OCF | 27.03 | ||
| P/B | 4.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.87 |
EPS(TTM)0.73
EY2.48%
EPS(NY)1.18
Fwd EY3.98%
FCF(TTM)0.69
FCFY2.33%
OCF(TTM)1.09
OCFY3.7%
SpS15.81
BVpS6.9
TBVpS-1.14
PEG (NY)8.09
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.96% | ||
| ROCE | 10.38% | ||
| ROIC | 7.48% | ||
| ROICexc | 8.26% | ||
| ROICexgc | 33.99% | ||
| OM | 7.67% | ||
| PM (TTM) | 2.16% | ||
| GM | 35.1% | ||
| FCFM | 4.35% |
ROA(3y)1.98%
ROA(5y)2.44%
ROE(3y)4.8%
ROE(5y)5.52%
ROIC(3y)5.28%
ROIC(5y)5%
ROICexc(3y)6.05%
ROICexc(5y)5.71%
ROICexgc(3y)25.21%
ROICexgc(5y)23.71%
ROCE(3y)7.33%
ROCE(5y)6.93%
ROICexcg growth 3Y28.4%
ROICexcg growth 5Y9.15%
ROICexc growth 3Y21.17%
ROICexc growth 5Y15.12%
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%
F-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 5.62 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 98.87% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 67.32% | ||
| Profit Quality | 201.09% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 2.87 |
F-Score7
WACC8.92%
ROIC/WACC0.84
Cap/Depr(3y)41.83%
Cap/Depr(5y)43.73%
Cap/Sales(3y)1.05%
Cap/Sales(5y)1.21%
Profit Quality(3y)398.23%
Profit Quality(5y)245.25%
High Growth Momentum
Growth
EPS 1Y (TTM)7.35%
EPS 3Y10.23%
EPS 5Y21.78%
EPS Q2Q%-36.36%
EPS Next Y4.99%
EPS Next 2Y25.17%
EPS Next 3Y25.98%
EPS Next 5Y27.61%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y19.91%
Revenue growth 5Y10.07%
Sales Q2Q%-9.29%
Revenue Next Year7.33%
Revenue Next 2Y13.39%
Revenue Next 3Y11.57%
Revenue Next 5Y11.67%
EBIT growth 1Y24.35%
EBIT growth 3Y30.84%
EBIT growth 5Y23.1%
EBIT Next Year77.79%
EBIT Next 3Y41.7%
EBIT Next 5Y34.8%
FCF growth 1Y23.19%
FCF growth 3Y325.72%
FCF growth 5Y13.97%
OCF growth 1Y67.58%
OCF growth 3Y116.17%
OCF growth 5Y15.26%