CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
NASDAQ:CECO - US1251411013 - Common Stock
46.43 USD
+0.91 (+2%)
46.43 USD
0 (0%)
Taking everything into account, CECO scores 4 out of 10 in our fundamental rating. CECO was compared to 84 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. 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.
CECO had a negative operating cash flow in the past year.
In the past 5 years CECO has always been profitable.
CECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CECO has a better Return On Assets (5.98%) than 73.81% of its industry peers.
Looking at the Return On Equity, with a value of 17.61%, CECO belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
The Return On Invested Capital of CECO (5.51%) is comparable to the rest of the industry.
CECO had an Average Return On Invested Capital over the past 3 years of 6.44%. This is below the industry average of 10.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.61% | ||
| ROIC | 5.51% |
ROA(3y)2.44%
ROA(5y)1.92%
ROE(3y)6.33%
ROE(5y)4.74%
ROIC(3y)6.44%
ROIC(5y)5.38%
1.3 Margins
Looking at the Profit Margin, with a value of 8.00%, CECO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of CECO has declined.
CECO has a Operating Margin (6.65%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CECO has grown nicely.
CECO has a Gross Margin (35.35%) which 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 | 6.65% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% |
OM growth 3Y23.72%
OM growth 5Y4.81%
PM growth 3Y75.38%
PM growth 5Y-14.76%
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.
CECO has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CECO has been reduced compared to 5 years ago.
CECO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.80 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 2.80. This is comparable to the rest of the industry: CECO outperforms 55.95% of its industry peers.
CECO has a Debt/Equity ratio of 0.80. This is a neutral value indicating CECO is somewhat dependend on debt financing.
CECO has a Debt to Equity ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.8 |
ROIC/WACC0.64
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CECO should not have too much problems paying its short term obligations.
CECO's Current ratio of 1.34 is on the low side compared to the rest of the industry. CECO is outperformed by 63.10% of its industry peers.
CECO has a Quick Ratio of 1.34. This is a bad value and indicates that CECO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CECO (0.81) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CECO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.41%.
CECO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.06% yearly.
The Revenue has grown by 15.73% in the past year. This is quite good.
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)-7.41%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%20%
Revenue 1Y (TTM)15.73%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%34.81%
3.2 Future
CECO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.59% yearly.
CECO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.22% yearly.
EPS Next Y39.58%
EPS Next 2Y44.4%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue Next Year36.11%
Revenue Next 2Y22.33%
Revenue Next 3Y17.22%
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
CECO is valuated quite expensively with a Price/Earnings ratio of 61.91.
The rest of the industry has a similar Price/Earnings ratio as CECO.
The average S&P500 Price/Earnings ratio is at 26.90. CECO is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 30.93, CECO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CECO is on the same level as its industry peers.
CECO's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.91 | ||
| Fwd PE | 30.93 |
4.2 Price Multiples
CECO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 29.36 |
4.3 Compensation for Growth
CECO's 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 39.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.56
PEG (5Y)15.24
EPS Next 2Y44.4%
EPS Next 3Y39.59%
5. Dividend
5.1 Amount
No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.43
+0.91 (+2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.07%
Inst Owner Change-99.96%
Ins Owners10.5%
Ins Owner Change4.94%
Market Cap1.64B
Analysts81.67
Price Target52.53 (13.14%)
Short Float %7.56%
Short Ratio6.05
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)24.2%
Min EPS beat(2)15.34%
Max EPS beat(2)33.06%
EPS beat(4)3
Avg EPS beat(4)5.27%
Min EPS beat(4)-28.66%
Max EPS beat(4)33.06%
EPS beat(8)6
Avg EPS beat(8)9.5%
EPS beat(12)9
Avg EPS beat(12)15.63%
EPS beat(16)12
Avg EPS beat(16)23.12%
Revenue beat(2)2
Avg Revenue beat(2)8.03%
Min Revenue beat(2)1.73%
Max Revenue beat(2)14.32%
Revenue beat(4)2
Avg Revenue beat(4)-0.18%
Min Revenue beat(4)-14.09%
Max Revenue beat(4)14.32%
Revenue beat(8)4
Avg Revenue beat(8)-0.29%
Revenue beat(12)8
Avg Revenue beat(12)2.42%
Revenue beat(16)11
Avg Revenue beat(16)3.57%
PT rev (1m)50%
PT rev (3m)52.97%
EPS NQ rev (1m)6.34%
EPS NQ rev (3m)-13.77%
EPS NY rev (1m)3.25%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.35%
Revenue NY rev (1m)4.69%
Revenue NY rev (3m)4.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.91 | ||
| Fwd PE | 30.93 | ||
| P/S | 2.5 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.36 |
EPS(TTM)0.75
EY1.62%
EPS(NY)1.5
Fwd EY3.23%
FCF(TTM)-0.46
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS18.57
BVpS8.46
TBVpS-3
PEG (NY)1.56
PEG (5Y)15.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.61% | ||
| ROCE | 7.37% | ||
| ROIC | 5.51% | ||
| ROICexc | 5.87% | ||
| ROICexgc | 21.53% | ||
| OM | 6.65% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% | ||
| FCFM | N/A |
ROA(3y)2.44%
ROA(5y)1.92%
ROE(3y)6.33%
ROE(5y)4.74%
ROIC(3y)6.44%
ROIC(5y)5.38%
ROICexc(3y)7.28%
ROICexc(5y)6.07%
ROICexgc(3y)30.16%
ROICexgc(5y)24.63%
ROCE(3y)8.62%
ROCE(5y)7.2%
ROICexcg growth 3Y23.93%
ROICexcg growth 5Y-0.1%
ROICexc growth 3Y22.44%
ROICexc growth 5Y2.13%
OM growth 3Y23.72%
OM growth 5Y4.81%
PM growth 3Y75.38%
PM growth 5Y-14.76%
GM growth 3Y4.29%
GM growth 5Y1.11%
F-Score4
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.87 | ||
| Cap/Depr | 78.76% | ||
| Cap/Sales | 2.16% | ||
| Interest Coverage | 2.5 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.8 |
F-Score4
WACC8.64%
ROIC/WACC0.64
Cap/Depr(3y)69.88%
Cap/Depr(5y)55.21%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.49%
Profit Quality(3y)164.74%
Profit Quality(5y)252.56%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.41%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%20%
EPS Next Y39.58%
EPS Next 2Y44.4%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue 1Y (TTM)15.73%
Revenue growth 3Y19.85%
Revenue growth 5Y10.29%
Sales Q2Q%34.81%
Revenue Next Year36.11%
Revenue Next 2Y22.33%
Revenue Next 3Y17.22%
Revenue Next 5YN/A
EBIT growth 1Y0.68%
EBIT growth 3Y48.28%
EBIT growth 5Y15.6%
EBIT Next Year125.11%
EBIT Next 3Y46.99%
EBIT Next 5YN/A
FCF growth 1Y-459.15%
FCF growth 3Y-9.18%
FCF growth 5Y11.85%
OCF growth 1Y-118.26%
OCF growth 3Y23.41%
OCF growth 5Y19.57%