CECO ENVIRONMENTAL CORP (CECE)

US1251411013 - Common Stock

11.65  +0.25 (+2.19%)

After market: 11.65 0 (0%)

Fundamental Rating

3

Overall CECE gets a fundamental rating of 3 out of 10. We evaluated CECE against 84 industry peers in the Commercial Services & Supplies industry. CECE has a bad profitability rating. Also its financial health evaluation is rather negative. CECE is valied quite expensively at the moment, while it does show a decent growth rate.



2

1. Profitability

1.1 Basic Checks

In the past year CECE was profitable.
In the past year CECE had a positive cash flow from operations.
In multiple years CECE reported negative net income over the last 5 years.
Each year in the past 5 years CECE had a positive operating cash flow.

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

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

3

2. Health

2.1 Basic Checks

CECE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CECE has been reduced compared to 1 year ago.
The debt/assets ratio for CECE has been reduced compared to a year ago.

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.
CECE has a debt to FCF ratio of 5.68. This is a neutral value as CECE would need 5.68 years to pay back of 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%

2.3 Liquidity

A Current Ratio of 1.59 indicates that CECE should not have too much problems paying its short term obligations.
CECE has a Quick Ratio of 1.01. This is a normal value and indicates that CECE is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.59
Quick Ratio 1.01

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 77.14% over the past year.
CECE shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -21.61% yearly.
Looking at the last year, CECE shows a very strong growth in Revenue. 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 growth Q2Q1900%
Revenue 1Y (TTM)27.55%
Revenue growth 3Y-1.32%
Revenue growth 5Y-4.91%
Revenue growth Q2Q35.55%

3.2 Future

CECE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.01% yearly.
CECE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
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

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.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.79 indicates a rather expensive valuation of CECE.
Compared to an average S&P500 Price/Earnings ratio of 26.42, CECE is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.31 indicates a correct valuation of CECE.
When comparing the Price/Forward Earnings ratio of CECE to the average of the S&P500 Index (22.74), we can say CECE is valued slightly cheaper.
Industry RankSector Rank
PE 18.79
Fwd PE 16.31

4.2 Price Multiples

Industry RankSector Rank
P/FCF 20.49
EV/EBITDA 13.75

4.3 Compensation for Growth

The 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%

0

5. Dividend

5.1 Amount

CECE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap399.94M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.79
Fwd PE 16.31
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.12%
ROE 5.15%
ROCE
ROIC
ROICexc
ROICexgc
OM 6.12%
PM (TTM) 2.58%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.59
Quick Ratio 1.01
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)77.14%
EPS 3Y1.18%
EPS 5Y
EPS growth Q2Q
EPS Next Y106.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)27.55%
Revenue growth 3Y-1.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y