CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
USA - NASDAQ:CECO - US1251411013 - Common Stock
53.3 USD
-0.32 (-0.6%)
53.3 USD
0 (0%)
Overall CECO gets a fundamental rating of 4 out of 10. We evaluated CECO against 82 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
CECO had positive earnings in the past year.
In the past year CECO has reported a negative cash flow from operations.
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's Return On Assets of 5.98% is fine compared to the rest of the industry. CECO outperforms 74.39% of its industry peers.
CECO's Return On Equity of 17.58% is amongst the best of the industry. CECO outperforms 82.93% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.47%, CECO is in line with its industry, outperforming 57.32% of the companies in the same industry.
CECO had an Average Return On Invested Capital over the past 3 years of 6.39%. This is below the industry average of 10.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.58% | ||
| ROIC | 5.47% |
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 8.00%, CECO is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
CECO's Profit Margin has declined in the last couple of years.
CECO has a Operating Margin of 6.64%. This is comparable to the rest of the industry: CECO outperforms 56.10% of its industry peers.
CECO's Operating Margin has improved in the last couple of years.
CECO has a Gross Margin of 35.35%. This is comparable to the rest of the industry: CECO outperforms 58.54% of its industry peers.
CECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% |
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
CECO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CECO has more shares outstanding than it did 1 year ago.
CECO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CECO is higher compared to a year ago.
2.2 Solvency
CECO has an Altman-Z score of 3.10. This indicates that CECO is financially healthy and has little risk of bankruptcy at the moment.
CECO has a Altman-Z score of 3.10. This is in the better half of the industry: CECO outperforms 64.63% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that CECO is somewhat dependend on debt financing.
CECO has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.1 |
ROIC/WACC0.65
WACC8.45%
2.3 Liquidity
CECO has a Current Ratio of 1.34. This is a normal value and indicates that CECO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CECO (1.34) is comparable to the rest of the industry.
CECO has a Quick Ratio of 1.34. 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 worse Quick ratio (0.81) than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.18% over the past year.
Measured over the past 5 years, CECO shows a small growth in Earnings Per Share. The EPS has been growing by 4.06% on average per year.
The Revenue has been growing slightly by 2.40% in the past year.
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)2.4%
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 41.35% on average per year.
CECO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.88% yearly.
EPS Next Y40.22%
EPS Next 2Y44.6%
EPS Next 3Y41.35%
EPS Next 5YN/A
Revenue Next Year36.19%
Revenue Next 2Y24.3%
Revenue Next 3Y18.88%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 61.26, which means the current valuation is very expensive for CECO.
CECO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CECO to the average of the S&P500 Index (25.83), we can say CECO is valued expensively.
A Price/Forward Earnings ratio of 35.40 indicates a quite expensive valuation of CECO.
CECO's Price/Forward Earnings ratio is in line with the industry average.
CECO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.26 | ||
| Fwd PE | 35.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CECO is valued a bit more expensive than 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.2 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as CECO's earnings are expected to grow with 41.35% in the coming years.
PEG (NY)1.52
PEG (5Y)15.08
EPS Next 2Y44.6%
EPS Next 3Y41.35%
5. Dividend
5.1 Amount
No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
53.3
-0.32 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.93%
Inst Owner Change-99.96%
Ins Owners10.45%
Ins Owner Change0.63%
Market Cap1.88B
Revenue(TTM)557.93M
Net Income(TTM)52.46M
Analysts81.67
Price Target54.06 (1.43%)
Short Float %7.95%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.2%
Min EPS beat(2)15.34%
Max EPS beat(2)33.06%
EPS beat(4)3
Avg EPS beat(4)5.27%
Min EPS beat(4)-28.66%
Max EPS beat(4)33.06%
EPS beat(8)6
Avg EPS beat(8)9.5%
EPS beat(12)9
Avg EPS beat(12)15.63%
EPS beat(16)12
Avg EPS beat(16)23.12%
Revenue beat(2)2
Avg Revenue beat(2)8.03%
Min Revenue beat(2)1.73%
Max Revenue beat(2)14.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-14.09%
Max Revenue beat(4)14.32%
Revenue beat(8)4
Avg Revenue beat(8)-0.29%
Revenue beat(12)8
Avg Revenue beat(12)2.42%
Revenue beat(16)11
Avg Revenue beat(16)3.57%
PT rev (1m)2.91%
PT rev (3m)54.37%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)2.93%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)7.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.26 | ||
| Fwd PE | 35.4 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 34.2 |
EPS(TTM)0.87
EY1.63%
EPS(NY)1.51
Fwd EY2.82%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS18.57
BVpS8.45
TBVpS-3.01
PEG (NY)1.52
PEG (5Y)15.08
Graham Number12.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.58% | ||
| ROCE | 7.37% | ||
| ROIC | 5.47% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 21.37% | ||
| OM | 6.64% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% | ||
| FCFM | N/A |
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%
ROICexgc growth 3Y24.08%
ROICexgc 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-Score4
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 82.27% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.1 |
F-Score4
WACC8.45%
ROIC/WACC0.65
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)19.18%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%85.71%
EPS Next Y40.22%
EPS Next 2Y44.6%
EPS Next 3Y41.35%
EPS Next 5YN/A
Revenue 1Y (TTM)2.4%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%45.82%
Revenue Next Year36.19%
Revenue Next 2Y24.3%
Revenue Next 3Y18.88%
Revenue Next 5YN/A
EBIT growth 1Y0.59%
EBIT growth 3Y48.77%
EBIT growth 5Y15.83%
EBIT Next Year125.11%
EBIT Next 3Y46.99%
EBIT Next 5YN/A
FCF growth 1Y-479.35%
FCF growth 3Y-11.27%
FCF growth 5Y10.3%
OCF growth 1Y-123.43%
OCF growth 3Y23.13%
OCF growth 5Y19.4%
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 of CECO ENVIRONMENTAL CORP (CECO) stock?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the PE and PB ratios for CECO stock?
The Price/Earnings (PE) ratio for CECO ENVIRONMENTAL CORP (CECO) is 61.26 and the Price/Book (PB) ratio is 6.31.
What is the earnings growth outlook for CECO ENVIRONMENTAL CORP?
The Earnings per Share (EPS) of CECO ENVIRONMENTAL CORP (CECO) is expected to grow by 40.22% in the next year.