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CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis

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

28.32  -0.61 (-2.11%)

After market: 28.32 0 (0%)

Fundamental Rating

4

CECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. While CECO is still in line with the averages on profitability rating, there are concerns on its financial health. CECO is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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5

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.
In the past 5 years CECO has always been profitable.
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 0 20M -20M 40M 60M

1.2 Ratios

CECO has a Return On Assets (1.92%) which is comparable to the rest of the industry.
CECO has a Return On Equity (4.96%) which 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 63.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CECO is below the industry average of 10.08%.
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 RankSector 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%
CECO Yearly ROA, ROE, ROICCECO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10 -15 -20

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.
CECO has a Operating Margin of 7.67%. This is comparable to the rest of the industry: CECO outperforms 58.54% of its industry peers.
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 56.10% 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 RankSector 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%
CECO Yearly Profit, Operating, Gross MarginsCECO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CECO is destroying value.
The number of shares outstanding for CECO has been increased compared to 1 year ago.
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.
CECO Yearly Shares OutstandingCECO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 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 200M 400M 600M

2.2 Solvency

CECO has an Altman-Z score of 2.84. 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's Altman-Z score of 2.84 is in line compared to the rest of the industry. CECO outperforms 59.76% of its industry peers.
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 better Debt to FCF ratio (5.62) than 65.85% of its industry peers.
CECO has a Debt/Equity ratio of 0.52. This is a neutral value indicating CECO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, CECO perfoms like the industry average, outperforming 47.56% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 5.62
Altman-Z 2.84
ROIC/WACC0.84
WACC8.87%
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 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.30 indicates that CECO should not have too much problems paying its short term obligations.
CECO has a worse Current ratio (1.30) than 63.41% of its industry peers.
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 82.93% of its industry peers.
Industry RankSector Rank
Current Ratio 1.3
Quick Ratio 0.8
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 50M 100M 150M 200M 250M

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7

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.
Looking at the last year, CECO shows a quite strong growth in Revenue. The Revenue has grown by 8.96% in the last year.
CECO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.07% yearly.
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

Based on estimates for the next years, CECO will show a very strong growth in Earnings Per Share. The EPS will grow by 27.61% on average per year.
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 Year4.59%
Revenue Next 2Y13.77%
Revenue Next 3Y12.27%
Revenue Next 5Y11.67%

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 stable.
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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3

4. Valuation

4.1 Price/Earnings Ratio

CECO is valuated quite expensively with a Price/Earnings ratio of 38.79.
CECO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.46. CECO is valued slightly more expensive when compared to this.
CECO is valuated rather expensively with a Price/Forward Earnings ratio of 24.10.
CECO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CECO is cheaper than 62.20% of the companies in the same industry.
CECO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
Industry RankSector Rank
PE 38.79
Fwd PE 24.1
CECO Price Earnings VS Forward Price EarningsCECO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

CECO's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CECO is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 41.2
EV/EBITDA 19.53
CECO Per share dataCECO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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)7.77
PEG (5Y)1.78
EPS Next 2Y25.17%
EPS Next 3Y25.98%

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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 (1/31/2025, 8:17:53 PM)

After market: 28.32 0 (0%)

28.32

-0.61 (-2.11%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-29 2024-10-29/bmo
Earnings (Next)N/A N/A
Inst Owners77.09%
Inst Owner Change-99.96%
Ins Owners9.06%
Ins Owner Change0%
Market Cap990.63M
Analysts81.67
Price Target34 (20.06%)
Short Float %7.62%
Short Ratio7.05
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)-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%
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)-2.55%
Revenue NY rev (3m)-7.2%
Valuation
Industry RankSector Rank
PE 38.79
Fwd PE 24.1
P/S 1.79
P/FCF 41.2
P/OCF 25.96
P/B 4.11
P/tB N/A
EV/EBITDA 19.53
EPS(TTM)0.73
EY2.58%
EPS(NY)1.18
Fwd EY4.15%
FCF(TTM)0.69
FCFY2.43%
OCF(TTM)1.09
OCFY3.85%
SpS15.81
BVpS6.9
TBVpS-1.14
PEG (NY)7.77
PEG (5Y)1.78
Profitability
Industry RankSector 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 RankSector 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 2.84
F-Score7
WACC8.87%
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 Year4.59%
Revenue Next 2Y13.77%
Revenue Next 3Y12.27%
Revenue Next 5Y11.67%
EBIT growth 1Y24.35%
EBIT growth 3Y30.84%
EBIT growth 5Y23.1%
EBIT Next Year79.48%
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%