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
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.
Each year in the past 5 years CECO had a positive operating cash flow.
1.2 Ratios
CECO has a better Return On Assets (4.96%) than 65.06% of its industry peers.
CECO has a better Return On Equity (16.60%) than 77.11% of its industry peers.
CECO has a Return On Invested Capital of 4.24%. This is comparable to the rest of the industry: CECO outperforms 49.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CECO is significantly below the industry average of 11.66%.
| 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.
With a Operating Margin value of 6.36%, CECO perfoms like the industry average, outperforming 53.01% of the companies in the same industry.
In the last couple of years the Operating Margin of CECO has grown nicely.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CECO 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 2.09. 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.
The Altman-Z score of CECO (2.09) is comparable to the rest of the industry.
CECO has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
CECO has a worse Debt to Equity ratio (1.19) than 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC0.5
WACC8.55%
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.
CECO has a Current ratio of 1.71. This is comparable to the rest of the industry: CECO outperforms 59.04% 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.
CECO has a Quick ratio of 1.22. This is comparable to the rest of the industry: CECO outperforms 43.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
The earnings per share for CECO have decreased by -6.58% in the last year.
Measured over the past 5 years, CECO shows a small growth in Earnings Per Share. The EPS has been growing by 4.06% on average per year.
The Revenue has grown by 8.89% 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)-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
Based on estimates for the next years, CECO will show a very strong growth in Earnings Per Share. The EPS will grow by 37.37% on average per year.
CECO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.37% yearly.
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 45.04, the valuation of CECO can be described as expensive.
CECO's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, CECO is valued quite expensively.
A Price/Forward Earnings ratio of 22.22 indicates a rather expensive valuation of CECO.
Based on the Price/Forward Earnings ratio, CECO is valued a bit cheaper than the industry average as 62.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CECO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.04 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CECO is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.12 |
4.3 Compensation for Growth
CECO's 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)1.28
PEG (5Y)11.09
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 |
NASDAQ:CECO (7/21/2025, 12:49:54 PM)
31.98
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners89.38%
Inst Owner Change-99.96%
Ins Owners10.53%
Ins Owner Change5.65%
Market Cap1.13B
Analysts81.67
Price Target35.02 (9.51%)
Short Float %8.57%
Short Ratio9.78
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)1.98%
PT rev (3m)-4.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.04 | ||
| Fwd PE | 22.22 | ||
| P/S | 1.85 | ||
| P/FCF | N/A | ||
| P/OCF | 94.72 | ||
| P/B | 3.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.12 |
EPS(TTM)0.71
EY2.22%
EPS(NY)1.44
Fwd EY4.5%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.34
OCFY1.06%
SpS17.25
BVpS8.1
TBVpS-3.06
PEG (NY)1.28
PEG (5Y)11.09
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 | 2.09 |
F-Score6
WACC8.55%
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%