CECO ENVIRONMENTAL CORP (CECO) Stock Fundamental Analysis
USA - NASDAQ:CECO - US1251411013 - Common Stock
48.88 USD
-2.04 (-4.01%)
48.88 USD
0 (0%)
CECO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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
In the past year CECO was profitable.
In the past year CECO has reported a negative cash flow from operations.
CECO had positive earnings in each of the past 5 years.
In the past 5 years CECO always reported a positive cash flow from operatings.
1.2 Ratios
CECO has a better Return On Assets (5.98%) than 74.39% of its industry peers.
Looking at the Return On Equity, with a value of 17.58%, CECO belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
CECO has a Return On Invested Capital (5.47%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CECO is below the industry average of 10.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.58% | ||
| ROIC | 5.47% |
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
CECO has a better Profit Margin (8.00%) than 79.27% of its industry peers.
CECO's Profit Margin has declined in the last couple of years.
CECO's Operating Margin of 6.64% is in line compared to the rest of the industry. CECO outperforms 56.10% of its industry peers.
CECO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.35%, CECO perfoms like the industry average, outperforming 58.54% of the companies in the same 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 | 6.64% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% |
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.
CECO has more shares outstanding than it did 1 year ago.
CECO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CECO has a worse debt to assets ratio.
2.2 Solvency
CECO has an Altman-Z score of 2.92. 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 (2.92) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.80 indicates that CECO is somewhat dependend on debt financing.
CECO has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: CECO outperforms 42.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.92 |
ROIC/WACC0.66
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.34 indicates that CECO should not have too much problems paying its short term obligations.
The Current ratio of CECO (1.34) is worse than 60.98% of its industry peers.
A Quick Ratio of 0.81 indicates that CECO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.81, CECO is doing worse than 79.27% of the companies in the same industry.
| 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.
CECO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.73%.
The Revenue has been growing by 10.29% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 39.59% on average over the next years. This is a very strong growth
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 2Y44.81%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue Next Year35.58%
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
Based on the Price/Earnings ratio of 65.17, the valuation of CECO can be described as expensive.
CECO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.42. CECO is valued rather expensively when compared to this.
CECO is valuated quite expensively with a Price/Forward Earnings ratio of 32.38.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CECO is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CECO to the average of the S&P500 Index (22.94), we can say CECO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.17 | ||
| Fwd PE | 32.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CECO indicates a slightly more expensive valuation: CECO is more expensive than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 31.47 |
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)1.65
PEG (5Y)16.04
EPS Next 2Y44.81%
EPS Next 3Y39.59%
5. Dividend
5.1 Amount
No dividends for CECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
48.88
-2.04 (-4.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners85.93%
Inst Owner Change-99.96%
Ins Owners10.45%
Ins Owner Change0.63%
Market Cap1.73B
Analysts81.67
Price Target52.53 (7.47%)
Short Float %7.81%
Short Ratio4.4
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)0%
PT rev (3m)50%
EPS NQ rev (1m)1.71%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)0%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)7.08%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)4.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.17 | ||
| Fwd PE | 32.38 | ||
| P/S | 2.63 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.47 |
EPS(TTM)0.75
EY1.53%
EPS(NY)1.51
Fwd EY3.09%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)-0.07
OCFYN/A
SpS18.57
BVpS8.45
TBVpS-3.01
PEG (NY)1.65
PEG (5Y)16.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 17.58% | ||
| ROCE | 7.37% | ||
| ROIC | 5.47% | ||
| ROICexc | 5.83% | ||
| ROICexgc | 21.37% | ||
| OM | 6.64% | ||
| PM (TTM) | 8% | ||
| GM | 35.35% | ||
| 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-Score4
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.89 | ||
| Cap/Depr | 82.27% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.92 |
F-Score4
WACC8.34%
ROIC/WACC0.66
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)-7.41%
EPS 3Y35.41%
EPS 5Y4.06%
EPS Q2Q%20%
EPS Next Y39.58%
EPS Next 2Y44.81%
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 Year35.58%
Revenue Next 2Y22.33%
Revenue Next 3Y17.22%
Revenue Next 5YN/A
EBIT growth 1Y0.59%
EBIT growth 3Y48.77%
EBIT growth 5Y15.83%
EBIT Next Year125.11%
EBIT Next 3Y46.99%
EBIT Next 5YN/A
FCF growth 1Y-479.35%
FCF growth 3Y-11.27%
FCF growth 5Y10.3%
OCF growth 1Y-123.43%
OCF growth 3Y23.13%
OCF growth 5Y19.4%