CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
NASDAQ:CECO - Nasdaq - US1251411013 - Common Stock - Currency: USD
Overall CECO gets a fundamental rating of 4 out of 10. We evaluated CECO against 83 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 is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years CECO always reported a positive cash flow from operatings.
1.2 Ratios
CECO has a Return On Assets of 4.96%. This is in the better half of the industry: CECO outperforms 63.86% of its industry peers.
The Return On Equity of CECO (16.60%) is better than 75.90% of its industry peers.
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.
CECO's Operating Margin of 6.36% is in line compared to the rest of the industry. CECO outperforms 53.01% of its industry peers.
CECO's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CECO is destroying value.
The number of shares outstanding for CECO has been increased compared to 1 year ago.
CECO has less shares outstanding than it did 5 years ago.
CECO has a worse debt/assets ratio than last year.
2.2 Solvency
CECO has an Altman-Z score of 2.00. 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 has a Altman-Z score (2.00) which is in line with its industry peers.
CECO has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.19, CECO is not doing good in the industry: 71.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2 |
ROIC/WACC0.42
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.71 indicates that CECO should not have too much problems paying 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.
With a Quick ratio value of 1.22, CECO perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for CECO have decreased by -6.58% in the last year.
CECO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.06% yearly.
Looking at the last year, CECO shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
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
CECO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.37% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 40.13, which means the current valuation is very expensive for CECO.
The rest of the industry has a similar Price/Earnings ratio as CECO.
When comparing the Price/Earnings ratio of CECO to the average of the S&P500 Index (26.35), we can say CECO is valued expensively.
The Price/Forward Earnings ratio is 19.80, which indicates a rather expensive current valuation of CECO.
63.86% of the companies in the same industry are more expensive than CECO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CECO to the average of the S&P500 Index (22.19), we can say CECO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.13 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CECO is valued a bit more expensive than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 22.42 |
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)1.14
PEG (5Y)9.88
EPS Next 2Y41.38%
EPS Next 3Y37.37%
5. Dividend
5.1 Amount
No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.49
-0.87 (-2.96%)
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 Change2.67%
Market Cap1.00B
Analysts81.67
Price Target34.34 (20.53%)
Short Float %8.57%
Short Ratio8.89
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)0%
PT rev (3m)-5.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.23%
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 | 40.13 | ||
| Fwd PE | 19.8 | ||
| P/S | 1.65 | ||
| P/FCF | N/A | ||
| P/OCF | 84.38 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.42 |
EPS(TTM)0.71
EY2.49%
EPS(NY)1.44
Fwd EY5.05%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.34
OCFY1.19%
SpS17.25
BVpS8.1
TBVpS-3.06
PEG (NY)1.14
PEG (5Y)9.88
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 | 2 |
F-Score6
WACC9.99%
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%