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. While CECO is still in line with the averages on profitability rating, there are concerns on its financial health. CECO is valied quite expensively at the moment, while 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.
CECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CECO has a better Return On Assets (4.96%) than 63.86% of its industry peers.
The Return On Equity of CECO (16.60%) is better than 75.90% of its industry peers.
The Return On Invested Capital of CECO (4.24%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for CECO is below the industry average of 11.34%.
| 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.
CECO has a Operating Margin of 6.36%. This is comparable to the rest of the industry: CECO outperforms 54.22% 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 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
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.
Compared to 5 years ago, CECO has less shares outstanding
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.
Looking at the Altman-Z score, with a value of 1.94, CECO is in line with its industry, outperforming 43.37% of the companies in the same industry.
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
WACC8.5%
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.
With a decent Current ratio value of 1.71, CECO is doing good in the industry, outperforming 60.24% of the companies in the same industry.
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.
CECO has a Quick ratio of 1.22. This is comparable to the rest of the industry: CECO outperforms 44.58% of its industry peers.
| 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.
CECO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.89%.
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
Based on estimates for the next years, CECO will show a quite strong growth in Revenue. The Revenue will grow by 14.37% on average per year.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 38.51, CECO can be considered very expensive at the moment.
CECO's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CECO to the average of the S&P500 Index (26.19), we can say CECO is valued slightly more expensively.
CECO is valuated rather expensively with a Price/Forward Earnings ratio of 19.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CECO indicates a somewhat cheap valuation: CECO is cheaper than 65.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, CECO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.51 | ||
| Fwd PE | 19 |
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 | 21.12 |
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)1.09
PEG (5Y)9.48
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 |
27.34
-0.89 (-3.15%)
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 Cap964.28M
Analysts81.67
Price Target34.34 (25.6%)
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 | 38.51 | ||
| Fwd PE | 19 | ||
| P/S | 1.59 | ||
| P/FCF | N/A | ||
| P/OCF | 80.98 | ||
| P/B | 3.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.12 |
EPS(TTM)0.71
EY2.6%
EPS(NY)1.44
Fwd EY5.26%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.34
OCFY1.23%
SpS17.25
BVpS8.1
TBVpS-3.06
PEG (NY)1.09
PEG (5Y)9.48
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
WACC8.5%
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%