CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
NASDAQ:CECO - Nasdaq - US1251411013 - Common Stock - Currency: USD
CECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 83 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of CECO while its profitability can be described as average. 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.
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
The Return On Assets of CECO (4.96%) is better than 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.
With a Return On Invested Capital value of 4.24%, CECO perfoms like the industry average, outperforming 49.40% 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 11.35%.
| 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
Looking at the Profit Margin, with a value of 7.80%, CECO is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
CECO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.36%, CECO perfoms like the industry average, outperforming 54.22% 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 56.63% of its industry peers.
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 | 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.
The number of shares outstanding for CECO has been increased compared to 1 year ago.
The number of shares outstanding for CECO has been reduced compared to 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 1.98. 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 (1.98) 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.
Looking at the Debt to Equity ratio, with a value of 1.19, CECO is doing worse than 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.5
WACC8.49%
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 the better half of the industry, outperforming 60.24% 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.
Looking at the Quick ratio, with a value of 1.22, CECO is in line with its industry, outperforming 44.58% of the companies in the same industry.
| 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.
The Revenue has been growing by 10.29% on average over the past years. This is quite good.
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
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.
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
Based on the Price/Earnings ratio of 39.76, the valuation of CECO can be described as expensive.
CECO's Price/Earnings is on the same level as the industry average.
CECO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
Based on the Price/Forward Earnings ratio of 19.61, the valuation of CECO can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CECO indicates a somewhat cheap valuation: CECO is cheaper than 63.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, CECO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.76 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CECO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.85 |
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)1.13
PEG (5Y)9.79
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 |
28.23
-0.25 (-0.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners88.76%
Inst Owner Change-99.96%
Ins Owners9%
Ins Owner Change2.06%
Market Cap995.67M
Analysts81.67
Price Target34.34 (21.64%)
Short Float %7.93%
Short Ratio7.44
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)-5.96%
PT rev (3m)-7%
EPS NQ rev (1m)-16.46%
EPS NQ rev (3m)-13.03%
EPS NY rev (1m)-15.68%
EPS NY rev (3m)-16.18%
Revenue NQ rev (1m)8.53%
Revenue NQ rev (3m)10.35%
Revenue NY rev (1m)3.76%
Revenue NY rev (3m)4.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.76 | ||
| Fwd PE | 19.61 | ||
| P/S | 1.64 | ||
| P/FCF | N/A | ||
| P/OCF | 83.61 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.85 |
EPS(TTM)0.71
EY2.52%
EPS(NY)1.44
Fwd EY5.1%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.34
OCFY1.2%
SpS17.25
BVpS8.1
TBVpS-3.06
PEG (NY)1.13
PEG (5Y)9.79
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 | 1.98 |
F-Score6
WACC8.49%
ROIC/WACC0.5
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%