CECO ENVIRONMENTAL CORP (CECO)
US1251411013 - Common Stock
Overall CECO gets a fundamental rating of 5 out of 10. We evaluated CECO against 85 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of CECO get a neutral evaluation. Nothing too spectacular is happening here. CECO is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
CECO had positive earnings in the past year.
In the past year CECO had a positive cash flow from operations.
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
With a Return On Assets value of 2.10%, CECO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.35%, CECO is in line with its industry, outperforming 55.95% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.71%, CECO is in the better half of the industry, outperforming 71.43% 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 10.04%.
The 3 year average ROIC (5.28%) for CECO is below the current ROIC(7.71%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 5.35% | ||
| ROIC | 7.71% |
ROA(3y)1.98%
ROA(5y)2.44%
ROE(3y)4.8%
ROE(5y)5.52%
ROIC(3y)5.28%
ROIC(5y)5%
1.3 Margins
CECO has a Profit Margin of 2.22%. This is comparable to the rest of the industry: CECO outperforms 53.57% of its industry peers.
In the last couple of years the Profit Margin of CECO has declined.
With a decent Operating Margin value of 7.53%, CECO is doing good in the industry, outperforming 60.71% of the companies in the same industry.
In the last couple of years the Operating Margin of CECO has grown nicely.
The Gross Margin of CECO (32.71%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CECO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.53% | ||
| PM (TTM) | 2.22% | ||
| GM | 32.71% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CECO is destroying value.
Compared to 1 year ago, CECO has more shares outstanding
CECO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CECO is higher compared to a year ago.
2.2 Solvency
CECO has an Altman-Z score of 2.78. 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.
The Altman-Z score of CECO (2.78) is better than 63.10% of its industry peers.
CECO has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as CECO would need 2.80 years to pay back of all of its debts.
The Debt to FCF ratio of CECO (2.80) is better than 70.24% of its industry peers.
CECO has a Debt/Equity ratio of 0.55. This is a neutral value indicating CECO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, CECO perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.78 |
ROIC/WACC0.88
WACC8.77%
2.3 Liquidity
CECO has a Current Ratio of 1.38. This is a normal value and indicates that CECO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CECO (1.38) is comparable to the rest of the industry.
A Quick Ratio of 0.89 indicates that CECO may have some problems paying its short term obligations.
CECO has a worse Quick ratio (0.89) than 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
CECO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.14%, which is quite good.
The Earnings Per Share has been growing by 21.78% on average over the past years. This is a very strong growth
The Revenue has grown by 26.16% in the past year. This is a very strong growth!
Measured over the past years, CECO shows a quite strong growth in Revenue. The Revenue has been growing by 10.07% on average per year.
EPS 1Y (TTM)10.14%
EPS 3Y10.23%
EPS 5Y21.78%
EPS growth Q2Q10%
Revenue 1Y (TTM)26.16%
Revenue growth 3Y19.91%
Revenue growth 5Y10.07%
Revenue growth Q2Q12.2%
3.2 Future
CECO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.45% yearly.
Based on estimates for the next years, CECO will show a quite strong growth in Revenue. The Revenue will grow by 8.69% on average per year.
EPS Next Y26.25%
EPS Next 2Y32.97%
EPS Next 3Y31.45%
EPS Next 5YN/A
Revenue Next Year11.78%
Revenue Next 2Y10.43%
Revenue Next 3Y8.69%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.05, which means the current valuation is very expensive for CECO.
CECO's Price/Earnings is on the same level as the industry average.
CECO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.91.
Based on the Price/Forward Earnings ratio of 18.94, the valuation of CECO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CECO is valued a bit cheaper than the industry average as 63.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.51, CECO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 18.94 |
4.2 Price Multiples
CECO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CECO is valued a bit cheaper than 70.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.91 | ||
| EV/EBITDA | 17.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CECO may justify a higher PE ratio.
A more expensive valuation may be justified as CECO's earnings are expected to grow with 31.45% in the coming years.
PEG (NY)1.26
PEG (5Y)1.52
EPS Next 2Y32.97%
EPS Next 3Y31.45%
5. Dividend
5.1 Amount
CECO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CECO ENVIRONMENTAL CORP
NASDAQ:CECO (5/15/2024, 4:29:29 PM)
After market: 25.12 0 (0%)25.12
+0.3 (+1.21%)
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 Cap875.93M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.05 | ||
| Fwd PE | 18.94 | ||
| 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)1.26
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 5.35% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.53% | ||
| PM (TTM) | 2.22% | ||
| GM | 32.71% | ||
| 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.89 | ||
| 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)10.14%
EPS 3Y10.23%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.16%
Revenue growth 3Y19.91%
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
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FCF growth 3Y
FCF growth 5Y
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