70.215 USD
+1.78 (+2.59%)
70.215 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to CECO. CECO was compared to 132 industry peers in the Machinery industry. CECO has a medium profitability rating, but doesn't score so well on its financial health evaluation. CECO shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year CECO was profitable.
- CECO had a negative operating cash flow in the past year.
- In the past 5 years CECO has always been profitable.
- Each year in the past 5 years CECO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.82%, CECO is in the better half of the industry, outperforming 64.39% of the companies in the same industry.
- CECO has a Return On Equity of 16.78%. This is in the better half of the industry: CECO outperforms 78.03% of its industry peers.
- CECO has a Return On Invested Capital (5.78%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for CECO is below the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.82% | ||
| ROE | 16.78% | ||
| ROIC | 5.78% |
ROA(3y)2.43%
ROA(5y)1.92%
ROE(3y)6.31%
ROE(5y)4.73%
ROIC(3y)6.39%
ROIC(5y)5.34%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.22%, CECO is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
- In the last couple of years the Profit Margin of CECO has declined.
- CECO's Operating Margin of 6.42% is in line compared to the rest of the industry. CECO outperforms 40.91% of its industry peers.
- CECO's Operating Margin has improved in the last couple of years.
- The Gross Margin of CECO (34.91%) is better than 62.12% of its industry peers.
- CECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 7.22% | ||
| GM | 34.91% |
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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CECO is destroying value.
- CECO has more shares outstanding than it did 1 year ago.
- 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.
2.2 Solvency
- An Altman-Z score of 3.70 indicates that CECO is not in any danger for bankruptcy at the moment.
- CECO's Altman-Z score of 3.70 is fine compared to the rest of the industry. CECO outperforms 62.88% of its industry peers.
- CECO has a Debt/Equity ratio of 0.71. This is a neutral value indicating CECO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.71, CECO is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.7 |
ROIC/WACC0.6
WACC9.62%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that CECO should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.33, CECO is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
- A Quick Ratio of 0.76 indicates that CECO may have some problems paying its short term obligations.
- With a Quick ratio value of 0.76, CECO is not doing good in the industry: 80.30% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 19.18% over the past year.
- The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
- Looking at the last year, CECO shows a very strong growth in Revenue. The Revenue has grown by 29.86%.
- The Revenue has been growing by 10.29% on average over the past years. This is quite good.
EPS 1Y (TTM)19.18%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%85.71%
Revenue 1Y (TTM)29.86%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%45.82%
3.2 Future
- Based on estimates for the next years, CECO will show a very strong growth in Earnings Per Share. The EPS will grow by 42.16% on average per year.
- The Revenue is expected to grow by 20.13% on average over the next years. This is a very strong growth
EPS Next Y39.51%
EPS Next 2Y43.92%
EPS Next 3Y42.16%
EPS Next 5YN/A
Revenue Next Year36.55%
Revenue Next 2Y25.1%
Revenue Next 3Y20.13%
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.
4. Valuation
4.1 Price/Earnings Ratio
- CECO is valuated quite expensively with a Price/Earnings ratio of 80.71.
- CECO's Price/Earnings ratio is a bit more expensive when compared to the industry. CECO is more expensive than 69.70% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. CECO is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 47.08 indicates a quite expensive valuation of CECO.
- CECO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CECO is more expensive than 68.18% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CECO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.71 | ||
| Fwd PE | 47.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CECO is valued a bit more expensive than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 38.44 |
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's earnings are expected to grow with 42.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)19.86
EPS Next 2Y43.92%
EPS Next 3Y42.16%
5. Dividend
5.1 Amount
- No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CECO ENVIRONMENTAL CORP / CECO FAQ
What is the ChartMill fundamental rating of CECO ENVIRONMENTAL CORP (CECO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CECO.
What is the valuation status for CECO stock?
ChartMill assigns a valuation rating of 1 / 10 to CECO ENVIRONMENTAL CORP (CECO). This can be considered as Overvalued.
What is the profitability of CECO stock?
CECO ENVIRONMENTAL CORP (CECO) has a profitability rating of 5 / 10.
How financially healthy is CECO ENVIRONMENTAL CORP?
The financial health rating of CECO ENVIRONMENTAL CORP (CECO) is 3 / 10.
Can you provide the dividend sustainability for CECO stock?
The dividend rating of CECO ENVIRONMENTAL CORP (CECO) is 0 / 10 and the dividend payout ratio is 0%.