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CECO ENVIRONMENTAL CORP (CECE) Stock Fundamental Analysis

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

11.65  +0.25 (+2.19%)

After market: 11.65 0 (0%)

Fundamental Rating

3

CECE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of CECE have multiple concerns. CECE has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

CECE had positive earnings in the past year.
CECE had a positive operating cash flow in the past year.
CECE Yearly Net Income VS EBIT VS OCF VS FCFCECE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 20M -20M 40M 60M

1.2 Ratios

Industry RankSector Rank
ROA 2.12%
ROE 5.15%
ROIC 5.57%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CECE Yearly ROA, ROE, ROICCECE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 5 -5 -10 -15 -20

1.3 Margins

CECE's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.12%
PM (TTM) 2.58%
GM N/A
OM growth 3Y-3.43%
OM growth 5Y-16.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CECE Yearly Profit, Operating, Gross MarginsCECE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 10 20 30

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CECE is destroying value.
The number of shares outstanding for CECE has been reduced compared to 1 year ago.
Compared to 1 year ago, CECE has an improved debt to assets ratio.
CECE Yearly Shares OutstandingCECE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 10M 20M 30M
CECE Yearly Total Debt VS Total AssetsCECE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 1.95 indicates that CECE is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Debt to FCF ratio of CECE is 5.68, which is a neutral value as it means it would take CECE, 5.68 years of fcf income to pay off all of its debts.
CECE has a Debt/Equity ratio of 0.53. This is a neutral value indicating CECE is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 5.68
Altman-Z 1.95
ROIC/WACC0.61
WACC9.2%
CECE Yearly LT Debt VS Equity VS FCFCECE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.59 indicates that CECE should not have too much problems paying its short term obligations.
A Quick Ratio of 1.01 indicates that CECE should not have too much problems paying its short term obligations.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 1.01
CECE Yearly Current Assets VS Current LiabilitesCECE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M

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5

3. Growth

3.1 Past

CECE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 77.14%, which is quite impressive.
CECE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.61% yearly.
CECE shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.55%.
Measured over the past years, CECE shows a decrease in Revenue. The Revenue has been decreasing by -4.91% on average per year.
EPS 1Y (TTM)77.14%
EPS 3Y1.18%
EPS 5Y-21.61%
EPS Q2Q%1900%
Revenue 1Y (TTM)27.55%
Revenue growth 3Y-1.32%
Revenue growth 5Y-4.91%
Sales Q2Q%35.55%

3.2 Future

The Earnings Per Share is expected to grow by 31.01% on average over the next years. This is a very strong growth
Based on estimates for the next years, CECE will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y106.2%
EPS Next 2Y56.94%
EPS Next 3Y41.76%
EPS Next 5Y31.01%
Revenue Next Year23.48%
Revenue Next 2Y14.57%
Revenue Next 3Y11.06%
Revenue Next 5Y6.86%

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.
CECE Yearly Revenue VS EstimatesCECE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
CECE Yearly EPS VS EstimatesCECE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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4

4. Valuation

4.1 Price/Earnings Ratio

CECE is valuated rather expensively with a Price/Earnings ratio of 18.79.
The average S&P500 Price/Earnings ratio is at 27.48. CECE is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.31, the valuation of CECE can be described as correct.
CECE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.52.
Industry RankSector Rank
PE 18.79
Fwd PE 16.31
CECE Price Earnings VS Forward Price EarningsCECE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF 20.49
EV/EBITDA 13.75
CECE Per share dataCECE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

CECE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CECE's earnings are expected to grow with 41.76% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y56.94%
EPS Next 3Y41.76%

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0

5. Dividend

5.1 Amount

No dividends for CECE!.
Industry RankSector Rank
Dividend Yield N/A

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CECO ENVIRONMENTAL CORP

NASDAQ:CECE (11/4/2022, 8:00:00 PM)

After market: 11.65 0 (0%)

11.65

+0.25 (+2.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-07 2022-11-07/bmo
Earnings (Next)03-13 2023-03-13
Inst Owners76.93%
Inst Owner Change0%
Ins Owners10.18%
Ins Owner Change0%
Market Cap399.94M
Analysts81.82
Price Target13.87 (19.06%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)85.24%
Min EPS beat(2)77.61%
Max EPS beat(2)92.86%
EPS beat(4)4
Avg EPS beat(4)87.72%
Min EPS beat(4)18.12%
Max EPS beat(4)162.29%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.4%
Min Revenue beat(2)11.62%
Max Revenue beat(2)13.18%
Revenue beat(4)4
Avg Revenue beat(4)10.83%
Min Revenue beat(4)9.1%
Max Revenue beat(4)13.18%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 18.79
Fwd PE 16.31
P/S 1
P/FCF 20.49
P/OCF 17.57
P/B 1.99
P/tB N/A
EV/EBITDA 13.75
EPS(TTM)0.62
EY5.32%
EPS(NY)0.71
Fwd EY6.13%
FCF(TTM)0.57
FCFY4.88%
OCF(TTM)0.66
OCFY5.69%
SpS11.65
BVpS5.84
TBVpS-0.79
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.12%
ROE 5.15%
ROCE N/A
ROIC 5.57%
ROICexc N/A
ROICexgc 16.23%
OM 6.12%
PM (TTM) 2.58%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-10.92%
ROICexcg growth 5Y-20.17%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-3.43%
OM growth 5Y-16.34%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 5.68
Debt/EBITDA N/A
Cap/Depr 32.14%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 189.1%
Current Ratio 1.59
Quick Ratio 1.01
Altman-Z 1.95
F-Score6
WACC9.2%
ROIC/WACC0.61
Cap/Depr(3y)39.87%
Cap/Depr(5y)29.86%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)260.24%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.14%
EPS 3Y1.18%
EPS 5Y-21.61%
EPS Q2Q%1900%
EPS Next Y106.2%
EPS Next 2Y56.94%
EPS Next 3Y41.76%
EPS Next 5Y31.01%
Revenue 1Y (TTM)27.55%
Revenue growth 3Y-1.32%
Revenue growth 5Y-4.91%
Sales Q2Q%35.55%
Revenue Next Year23.48%
Revenue Next 2Y14.57%
Revenue Next 3Y11.06%
Revenue Next 5Y6.86%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y28.5%
FCF growth 3Y-17.27%
FCF growth 5Y-31.05%
OCF growth 1Y13.92%
OCF growth 3Y-15.39%
OCF growth 5Y-28.18%