CECO Environmental
Market Cap
US$264.9m
Last Updated
2021/06/20 22:10 UTC
Data Sources
Company Financials +
Executive Summary
CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other niche markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CECE's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-9.9%
CECE
-2.2%
US Commercial Services
-1.9%
US Market
1 Year Return
17.6%
CECE
35.8%
US Commercial Services
38.2%
US Market
Return vs Industry: CECE underperformed the US Commercial Services industry which returned 35.8% over the past year.
Return vs Market: CECE underperformed the US Market which returned 38.2% over the past year.
Shareholder returns
| CECE | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.9% | -2.2% | -1.9% |
| 30 Day | -8.0% | -1.3% | 1.1% |
| 90 Day | -7.6% | 8.7% | 4.3% |
| 1 Year | 17.6%17.6% | 37.5%35.8% | 40.4%38.2% |
| 3 Year | 22.9%22.9% | 51.1%41.3% | 57.5%47.8% |
| 5 Year | -8.4%-11.6% | 120.0%98.3% | 127.2%101.7% |
Long-Term 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
Is CECO Environmental Corp. (NASDAQ:CECE) Potentially Undervalued?3 weeks ago | Simply Wall St
Could The CECO Environmental Corp. (NASDAQ:CECE) Ownership Structure Tell Us Something Useful?1 month ago | Simply Wall St
We Think CECO Environmental (NASDAQ:CECE) Can Stay On Top Of Its DebtValuation
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 ($7.47) is trading below our estimate of fair value ($15.76)
Significantly Below Fair Value: CECE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CECE is poor value based on its PE Ratio (44.2x) compared to the US Commercial Services industry average (33.3x).
PE vs Market: CECE is poor value based on its PE Ratio (44.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: CECE is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: CECE is good value based on its PB Ratio (1.3x) compared to the US Commercial Services industry average (2.4x).
Future Growth
How is CECO Environmental forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
73.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CECE's forecast earnings growth (73.4% per year) is above the savings rate (2%).
Earnings vs Market: CECE's earnings (73.4% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CECE's revenue (9.5% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: CECE's revenue (9.5% 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
Past Performance
How has CECO Environmental performed over the past 5 years?
48.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CECE has a large one-off loss of $7.0M impacting its March 31 2021 financial results.
Growing Profit Margin: CECE's current net profit margins (1.9%) are lower than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: CECE has become profitable over the past 5 years, growing earnings by 48.4% per year.
Accelerating Growth: CECE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CECE had negative earnings growth (-68.9%) over the past year, making it difficult to compare to the Commercial Services industry average (3.2%).
Return on Equity
High ROE: CECE's Return on Equity (2.9%) is considered low.
Financial Health
How is CECO Environmental's financial position?
Financial Position Analysis
Short Term Liabilities: CECE's short term assets ($181.5M) exceed its short term liabilities ($106.1M).
Long Term Liabilities: CECE's short term assets ($181.5M) exceed its long term liabilities ($101.9M).
Debt to Equity History and Analysis
Debt Level: CECE's debt to equity ratio (33.7%) is considered satisfactory.
Reducing Debt: CECE's debt to equity ratio has reduced from 69.2% to 33.7% over the past 5 years.
Debt Coverage: CECE's debt is not well covered by operating cash flow (10.6%).
Interest Coverage: CECE's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Dividend
What is CECO Environmental 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 recent payouts.
High Dividend: Unable to evaluate CECE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
4.1yrs
Average management tenure
CEO
Todd Gleason (49 yo)
0.92
Tenure
US$3,539,781
Compensation
Mr. Todd R. Gleason has been Chief Executive Officer and Director at CECO Environmental Corp since July 6, 2020. He was the Chief Executive Officer and President at Scientific Analytics Inc., from April 20...
CEO Compensation Analysis
Compensation vs Market: Todd's total compensation ($USD3.54M) is above average for companies of similar size in the US market ($USD1.07M).
Compensation vs Earnings: Insufficient data to compare Todd's compensation with company performance.
Leadership Team
Experienced Management: CECE's management team is considered experienced (4.1 years average tenure).
Board Members
Experienced Board: CECE's board of directors are considered experienced (5.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CECE 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$264.936m
- Shares outstanding: 35.47m
- Website: https://www.cecoenviro.com
Number of Employees
Location
- CECO Environmental Corp.
- 14651 North Dallas Parkway
- Suite 500
- Dallas
- Texas
- 75254
- United States
Listings
Biography
CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other niche markets worldwide. It operates through three segments: Energy Solutions, Indu...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/20 22:10 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.