DB:WCE

Stock Analysis Report

Executive Summary

CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other markets worldwide.

Snowflake

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has CECO Environmental's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WCE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.6%

WCE

-0.6%

DE Commercial Services

0.03%

DE Market


1 Year Return

2.4%

WCE

-2.1%

DE Commercial Services

9.9%

DE Market

Return vs Industry: WCE exceeded the German Commercial Services industry which returned -2.1% over the past year.

Return vs Market: WCE underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

WCEIndustryMarket
7 Day3.6%-0.6%0.03%
30 Day20.8%5.1%4.4%
90 Day15.8%18.8%13.6%
1 Year2.4%2.4%1.4%-2.1%13.4%9.9%
3 Year-37.5%-39.3%5.2%-3.9%25.6%14.6%
5 Year-27.0%-33.1%-2.6%-16.4%36.9%18.2%

Price Volatility Vs. Market

How volatile is CECO Environmental's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is CECO Environmental undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCE (€7.25) is trading below our estimate of fair value (€21.1)

Significantly Below Fair Value: WCE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WCE is poor value based on its PE Ratio (27.7x) compared to the Commercial Services industry average (16.6x).

PE vs Market: WCE is poor value based on its PE Ratio (27.7x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: WCE is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: WCE is good value based on its PB Ratio (1.5x) compared to the DE Commercial Services industry average (2.6x).


Next Steps

Future Growth

How is CECO Environmental forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

27.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCE's forecast earnings growth (27.2% per year) is above the savings rate (0.2%).

Earnings vs Market: WCE's earnings (27.2% per year) are forecast to grow faster than the German market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WCE's revenue (6.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: WCE's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WCE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has CECO Environmental performed over the past 5 years?

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCE has high quality earnings.

Growing Profit Margin: WCE's current net profit margins (3%) are higher than last year (-6.2%).


Past Earnings Growth Analysis

Earnings Trend: WCE's earnings have declined by -25.3% per year over the past 5 years.

Accelerating Growth: WCE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WCE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (6.1%).


Return on Equity

High ROE: WCE's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CECO Environmental's financial position?


Financial Position Analysis

Short Term Liabilities: WCE's short term assets ($158.3M) exceeds its short term liabilities ($103.8M)

Long Term Liabilities: WCE's short term assets (158.3M) exceeds its long term liabilities (101.7M)


Debt to Equity History and Analysis

Debt Level: WCE's debt to equity ratio (36.6%) is considered satisfactory

Reducing Debt: WCE's debt to equity ratio has reduced from 47.6% to 36.6% over the past 5 years.

Debt Coverage: WCE's debt is well covered by operating cash flow (26.2%).

Interest Coverage: WCE's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: WCE has a low level of unsold assets or inventory.

Debt Coverage by Assets: WCE's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is CECO Environmental's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.7%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WCE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WCE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WCE is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WCE's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of CECO Environmental's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Dennis Sadlowski (58yo)

2.8yrs

Tenure

US$2,062,753

Compensation

Mr. Dennis Sadlowski has been the Chief Executive Officer of CECO Environmental Corp. since June 12, 2017 and had been its President since January 23, 2017 till June 2017. Mr. Sadlowski served as an Interi ...


CEO Compensation Analysis

Compensation vs Market: Dennis's total compensation ($USD2.06M) is above average for companies of similar size in the German market ($USD506.61K).

Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

47yo

Average Age

Experienced Management: WCE's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

51.5yo

Average Age

Experienced Board: WCE's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: WCE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$18,66127 Aug 19
David Liner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$6.22
BuyUS$12,60816 Aug 19
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,000
Max PriceUS$6.30
BuyUS$13,77113 May 19
Matthew Eckl
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,900
Max PriceUS$7.25
BuyUS$25,76828 Mar 19
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,000
Max PriceUS$6.44
BuyUS$31,70711 Mar 19
David Liner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$6.34
BuyUS$5,75729 Dec 18
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,000
Max PriceUS$5.76
BuyUS$9,97512 Dec 18
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,500
Max PriceUS$6.65
BuyUS$34,83228 Nov 18
David Liner
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$6.97

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jonathan Pollack (48yo)

    Assistant Secretary & Director

    • Tenure: 8.5yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.06m
  • Gennaro D'Alterio (47yo)

    President of Fluid Handling and Filtration Business Segment

    • Tenure: 5.7yrs
  • Hillary Jeffries

    Chief Human Resources & Administration Officer

    • Tenure: 0yrs
  • Ray Smith

    Divisional Controller of Air Pollution Control (APC) Technology Segment

    • Tenure: 0yrs
  • Steve Fritz

    President of Recurring Revenues

    • Tenure: 3.3yrs
  • Matt Eckl (38yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$939.37k
  • Paul Gohr (37yo)

    Chief Accounting Officer

    • Tenure: 2.5yrs
    • Compensation: US$374.39k

Board Members

  • Jason DeZwirek (48yo)

    Chairman of the Board

    • Tenure: 6.5yrs
    • Compensation: US$310.00k
  • Valerie Sachs (63yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$130.00k
  • Jonathan Pollack (48yo)

    Assistant Secretary & Director

    • Tenure: 8.5yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.06m
  • David Liner (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$130.00k
  • Claudio Mannarino (49yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$145.00k
  • Eric Goldberg (49yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$115.00k
  • Munish Nanda (54yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$83.48k

Company Information

CECO Environmental Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CECO Environmental Corp.
  • Ticker: WCE
  • Exchange: DB
  • Founded: 1966
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Market Cap: US$286.531m
  • Listing Market Cap: US$259.368m
  • Shares outstanding: 35.24m
  • Website: https://www.cecoenviro.com

Number of Employees


Location

  • CECO Environmental Corp.
  • 14651 North Dallas Parkway
  • Suite 500
  • Dallas
  • Texas
  • 75254
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CECENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
WCEDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other markets worldwide. The company operates through three segments: Energy Solutions, E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 20:41
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.