CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
NASDAQ:CECO - Nasdaq - US1251411013 - Common Stock - Currency: USD
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. While CECO is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, CECO is valued expensive at the moment.
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.
Each year in the past 5 years CECO had a positive operating cash flow.
1.2 Ratios
CECO's Return On Assets of 4.96% is fine compared to the rest of the industry. CECO outperforms 63.86% of its industry peers.
Looking at the Return On Equity, with a value of 16.60%, CECO is in the better half of the industry, outperforming 75.90% of the companies in the same industry.
CECO has a Return On Invested Capital (4.24%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for CECO is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.6% | ||
| ROIC | 4.24% |
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
CECO's Profit Margin of 7.80% is fine compared to the rest of the industry. CECO outperforms 75.90% of its industry peers.
In the last couple of years the Profit Margin of CECO has declined.
Looking at the Operating Margin, with a value of 6.36%, CECO is in line with its industry, outperforming 53.01% of the companies in the same industry.
In the last couple of years the Operating Margin of CECO has grown nicely.
CECO's Gross Margin of 35.18% is in line compared to the rest of the industry. CECO outperforms 55.42% of its industry peers.
CECO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.36% | ||
| PM (TTM) | 7.8% | ||
| GM | 35.18% |
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.
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
An Altman-Z score of 1.97 indicates that CECO is not a great score, but indicates only limited risk for bankruptcy at the moment.
CECO has a Altman-Z score of 1.97. This is comparable to the rest of the industry: CECO outperforms 42.17% of its industry peers.
CECO has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
CECO's Debt to Equity ratio of 1.19 is on the low side compared to the rest of the industry. CECO is outperformed by 71.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.97 |
ROIC/WACC0.42
WACC10.05%
2.3 Liquidity
CECO has a Current Ratio of 1.71. This is a normal value and indicates that CECO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.71, CECO is in line with its industry, outperforming 59.04% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that CECO should not have too much problems paying its short term obligations.
CECO's Quick ratio of 1.22 is in line compared to the rest of the industry. CECO outperforms 43.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
CECO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.58%.
The Earnings Per Share has been growing slightly by 4.06% on average over the past years.
The Revenue has grown by 8.89% in the past year. This is quite good.
CECO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.29% yearly.
EPS 1Y (TTM)-6.58%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)8.89%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%39.87%
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 37.37% on average per year.
The Revenue is expected to grow by 14.37% on average over the next years. This is quite good.
EPS Next Y35.18%
EPS Next 2Y41.38%
EPS Next 3Y37.37%
EPS Next 5YN/A
Revenue Next Year30.02%
Revenue Next 2Y19.05%
Revenue Next 3Y14.37%
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 40.49.
CECO's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CECO to the average of the S&P500 Index (27.21), we can say CECO is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 19.98, the valuation of CECO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CECO is valued a bit cheaper than 65.06% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, CECO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 19.98 |
4.2 Price Multiples
CECO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.74 |
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 37.37% in the coming years.
PEG (NY)1.15
PEG (5Y)9.97
EPS Next 2Y41.38%
EPS Next 3Y37.37%
5. Dividend
5.1 Amount
CECO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.75
+0.44 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.38%
Inst Owner Change-99.96%
Ins Owners10.53%
Ins Owner Change5.71%
Market Cap1.01B
Analysts81.67
Price Target35.02 (21.81%)
Short Float %7.8%
Short Ratio8.03
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)8.35%
Min EPS beat(2)1.35%
Max EPS beat(2)15.34%
EPS beat(4)3
Avg EPS beat(4)2.97%
Min EPS beat(4)-28.66%
Max EPS beat(4)23.84%
EPS beat(8)5
Avg EPS beat(8)4.85%
EPS beat(12)9
Avg EPS beat(12)20.61%
EPS beat(16)12
Avg EPS beat(16)21.11%
Revenue beat(2)1
Avg Revenue beat(2)5.82%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)14.32%
Revenue beat(4)1
Avg Revenue beat(4)-2.1%
Min Revenue beat(4)-14.09%
Max Revenue beat(4)14.32%
Revenue beat(8)4
Avg Revenue beat(8)0.43%
Revenue beat(12)8
Avg Revenue beat(12)3.37%
Revenue beat(16)11
Avg Revenue beat(16)3.53%
PT rev (1m)1.98%
PT rev (3m)-4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.49 | ||
| Fwd PE | 19.98 | ||
| P/S | 1.67 | ||
| P/FCF | N/A | ||
| P/OCF | 85.15 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.74 |
EPS(TTM)0.71
EY2.47%
EPS(NY)1.44
Fwd EY5.01%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.34
OCFY1.17%
SpS17.25
BVpS8.1
TBVpS-3.06
PEG (NY)1.15
PEG (5Y)9.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 16.6% | ||
| ROCE | 5.7% | ||
| ROIC | 4.24% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 20.72% | ||
| OM | 6.36% | ||
| PM (TTM) | 7.8% | ||
| GM | 35.18% | ||
| 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%
ROICexcg growth 3Y24.08%
ROICexcg 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-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.18 | ||
| Cap/Depr | 109.37% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 21.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.97 |
F-Score6
WACC10.05%
ROIC/WACC0.42
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)-6.58%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%-9.09%
EPS Next Y35.18%
EPS Next 2Y41.38%
EPS Next 3Y37.37%
EPS Next 5YN/A
Revenue 1Y (TTM)8.89%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%39.87%
Revenue Next Year30.02%
Revenue Next 2Y19.05%
Revenue Next 3Y14.37%
Revenue Next 5YN/A
EBIT growth 1Y-8%
EBIT growth 3Y48.77%
EBIT growth 5Y15.83%
EBIT Next Year117.45%
EBIT Next 3Y43.22%
EBIT Next 5YN/A
FCF growth 1Y-145.43%
FCF growth 3Y-11.27%
FCF growth 5Y10.3%
OCF growth 1Y-33.21%
OCF growth 3Y23.13%
OCF growth 5Y19.4%