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. While showing a medium growth rate, CECO is valued expensive at the moment.
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.
Each year in the past 5 years CECO has been profitable.
CECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.96%, CECO is doing good in the industry, outperforming 63.86% of the companies in the same industry.
CECO's Return On Equity of 16.60% is fine compared to the rest of the industry. CECO outperforms 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 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
The Profit Margin of CECO (7.80%) is better than 77.11% of its industry peers.
In the last couple of years the Profit Margin of CECO has declined.
Looking at the Operating Margin, with a value of 6.36%, CECO is in line with its industry, outperforming 54.22% of the companies in the same industry.
CECO's Operating Margin has improved in the last couple of years.
The Gross Margin of CECO (35.18%) 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 | 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.
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
An Altman-Z score of 1.94 indicates that CECO is not a great score, but indicates only limited risk for bankruptcy at the moment.
CECO has a Altman-Z score of 1.94. This is comparable to the rest of the industry: CECO outperforms 44.58% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that CECO has dependencies on debt 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 | 1.94 |
ROIC/WACC0.5
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.71 indicates that CECO should not have too much problems paying its short term obligations.
The Current ratio of CECO (1.71) is better than 60.24% of its industry peers.
CECO has a Quick Ratio of 1.22. 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 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.
Looking at the last year, CECO shows a quite strong growth in Revenue. The Revenue has grown by 8.89% in the last year.
Measured over the past years, CECO shows a quite strong growth in Revenue. The Revenue has been growing by 10.29% on average per year.
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
The Earnings Per Share is expected to grow by 37.37% on average over the next years. This is a very strong growth
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
Based on the Price/Earnings ratio of 40.11, the valuation of CECO can be described as expensive.
CECO's Price/Earnings is on the same level as the industry average.
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.
CECO is valuated rather expensively with a Price/Forward Earnings ratio of 19.79.
CECO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CECO is cheaper than 65.06% of the companies 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 | 40.11 | ||
| Fwd PE | 19.79 |
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 | 21.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CECO's earnings are expected to grow with 37.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)9.87
EPS Next 2Y41.38%
EPS Next 3Y37.37%
5. Dividend
5.1 Amount
CECO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.48
+1.17 (+4.28%)
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 Cap1.00B
Analysts81.67
Price Target34.34 (20.58%)
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 | 40.11 | ||
| Fwd PE | 19.79 | ||
| P/S | 1.65 | ||
| P/FCF | N/A | ||
| P/OCF | 84.35 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.1 |
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)9.87
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 | 1.94 |
F-Score6
WACC8.56%
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%