CECO Environmental
Market Cap
US$171.8m
Last Updated
2020/04/09 02:04 UTC
Data Sources
Company Financials +
Executive Summary
CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other markets worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet.
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: CECE's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.3%
CECE
7.5%
US Commercial Services
8.0%
US Market
1 Year Return
-36.3%
CECE
-14.6%
US Commercial Services
-8.1%
US Market
Return vs Industry: CECE underperformed the US Commercial Services industry which returned -14.6% over the past year.
Return vs Market: CECE underperformed the US Market which returned -8.1% over the past year.
Shareholder returns
| CECE | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | 7.5% | 8.0% |
| 30 Day | -21.3% | -16.7% | -4.5% |
| 90 Day | -37.6% | -23.5% | -17.8% |
| 1 Year | -36.3%-36.3% | -11.6%-14.6% | -6.0%-8.1% |
| 3 Year | -52.5%-53.4% | 20.6%12.8% | 21.3%13.2% |
| 5 Year | -53.0%-56.5% | 43.5%28.2% | 39.1%23.7% |
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
6 days ago | Simply Wall St
If You Had Bought CECO Environmental (NASDAQ:CECE) Stock Five Years Ago, You'd Be Sitting On A 57% Loss, Today2 weeks ago | Simply Wall St
Can We See Significant Insider Ownership On The CECO Environmental Corp. (NASDAQ:CECE) Share Register?1 month ago | Simply Wall St
CECO Environmental Corp. Just Recorded A 38% EPS Beat: Here's What Analysts Are Forecasting NextValuation
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: CECE ($4.87) is trading below our estimate of fair value ($19.69)
Significantly Below Fair Value: CECE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CECE is good value based on its PE Ratio (9.6x) compared to the Commercial Services industry average (22x).
PE vs Market: CECE is good value based on its PE Ratio (9.6x) compared to the US market (13.3x).
Price to Earnings Growth Ratio
PEG Ratio: CECE is poor value based on its PEG Ratio (13.8x)
Price to Book Ratio
PB vs Industry: CECE is good value based on its PB Ratio (0.9x) compared to the US Commercial Services industry average (1.2x).
Next Steps
Future Growth
How is CECO Environmental forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CECE's forecast earnings growth (0.7% per year) is below the savings rate (1.7%).
Earnings vs Market: CECE's earnings (0.7% per year) are forecast to grow slower than the US market (13.3% per year).
High Growth Earnings: CECE's earnings are forecast to grow, but not significantly.
Revenue vs Market: CECE's revenue (5% per year) is forecast to grow slower than the US market (6.9% per year).
High Growth Revenue: CECE's revenue (5% 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 CECE'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?
-6.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CECE has high quality earnings.
Growing Profit Margin: CECE became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CECE has become profitable over the past 5 years, growing earnings by -6.9% per year.
Accelerating Growth: CECE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CECE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (2.5%).
Return on Equity
High ROE: CECE's Return on Equity (9.2%) is considered low.
Next Steps
Financial Health
How is CECO Environmental's financial position?
Financial Position Analysis
Short Term Liabilities: CECE's short term assets ($179.5M) exceed its short term liabilities ($115.2M).
Long Term Liabilities: CECE's short term assets ($179.5M) exceed its long term liabilities ($100.4M).
Debt to Equity History and Analysis
Debt Level: CECE's debt to equity ratio (33.9%) is considered satisfactory.
Reducing Debt: CECE's debt to equity ratio has reduced from 61.7% to 33.9% over the past 5 years.
Debt Coverage: CECE's debt is not well covered by operating cash flow (15.6%).
Interest Coverage: CECE's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Next Steps
Dividend
What is CECO Environmental's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CECE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CECE'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 CECE's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CECE's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CECE is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CECE's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.5yrs
Average management tenure
CEO
Dennis Sadlowski (58yo)
3.25s
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 US market ($USD1.45M).
Compensation vs Earnings: Dennis's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.25yrs | US$2.06m | 0.32% $556.2k | |
| Chief Financial Officer | 3.25yrs | US$939.37k | 0.080% $137.1k | |
| Chief Accounting Officer | 2.92yrs | US$374.39k | 0.078% $133.3k | |
| Assistant Secretary & Director | 8.92yrs | US$193.00k | 0.44% $749.4k | |
| Chief Human Resources & Administration Officer | no data | no data | no data | |
| President of Fluid Handling and Filtration Business Segment | 6.08yrs | no data | no data | |
| President of Recurring Revenues | 3.75yrs | no data | no data | |
| Divisional Controller of Air Pollution Control (APC) Technology Segment | no data | no data | no data |
3.5yrs
Average Tenure
47yo
Average Age
Experienced Management: CECE's management team is considered experienced (3.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.25yrs | US$2.06m | 0.32% $556.2k | |
| Assistant Secretary & Director | 8.92yrs | US$193.00k | 0.44% $749.4k | |
| Chairman of the Board | 6.92yrs | US$310.00k | 4.16% $7.1m | |
| Independent Director | 3.92yrs | US$130.00k | 0.055% $94.0k | |
| Independent Director | 2.92yrs | US$130.00k | 0.15% $259.8k | |
| Independent Director | 4.83yrs | US$145.00k | 0.11% $182.7k | |
| Independent Director | 7yrs | US$115.00k | 0.13% $229.1k | |
| Independent Director | 1.83yrs | US$83.48k | 0.053% $91.1k |
4.4yrs
Average Tenure
51.5yo
Average Age
Experienced Board: CECE's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
CECO Environmental Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: CECO Environmental Corp.
- Ticker: CECE
- Exchange: NasdaqGS
- Founded: 1966
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Market Cap: US$171.837m
- Shares outstanding: 35.28m
- Website: https://www.cecoenviro.com
Number of Employees
Location
- CECO Environmental Corp.
- 14651 North Dallas Parkway
- Suite 500
- Dallas
- Texas
- 75254
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CECE | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1972 |
| WCE | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 1972 |
| WCE | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | Dec 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, Industrial Solutions, and Fluid Handling Solutions. The company engineers, designs, builds, and installs systems that capture, clean, and destroy airborne contaminants from industrial facilities, as well as equipment that control emissions from such facilities; and fluid handling and filtration systems. Its products and services include dampers and diverters, selective catalytic reduction and selective non-catalytic reduction systems, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, boiler manufacturers, compressor manufacturers, metals and minerals, industrial manufacturing, and engineering and construction companies. CECO Environmental Corp. was founded in 1966 and is headquartered in Dallas, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/09 02:04 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.