NasdaqGS:CECE

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 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

CECEIndustryMarket
7 Day4.3%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

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: 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

NamePositionTenureCompensationOwnership
Dennis Sadlowski
CEO & Director3.25yrsUS$2.06m0.32% $556.2k
Matthew Eckl
Chief Financial Officer3.25yrsUS$939.37k0.080% $137.1k
Paul Gohr
Chief Accounting Officer2.92yrsUS$374.39k0.078% $133.3k
Jonathan Pollack
Assistant Secretary & Director8.92yrsUS$193.00k0.44% $749.4k
Hillary Jeffries
Chief Human Resources & Administration Officerno datano datano data
Gennaro D'Alterio
President of Fluid Handling and Filtration Business Segment6.08yrsno datano data
Stephen Fritz
President of Recurring Revenues3.75yrsno datano data
Ray Smith
Divisional Controller of Air Pollution Control (APC) Technology Segmentno datano datano data

3.5yrs

Average Tenure

47yo

Average Age

Experienced Management: CECE's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dennis Sadlowski
CEO & Director3.25yrsUS$2.06m0.32% $556.2k
Jonathan Pollack
Assistant Secretary & Director8.92yrsUS$193.00k0.44% $749.4k
Jason DeZwirek
Chairman of the Board6.92yrsUS$310.00k4.16% $7.1m
Valerie Sachs
Independent Director3.92yrsUS$130.00k0.055% $94.0k
David Liner
Independent Director2.92yrsUS$130.00k0.15% $259.8k
Claudio Mannarino
Independent Director4.83yrsUS$145.00k0.11% $182.7k
Eric Goldberg
Independent Director7yrsUS$115.00k0.13% $229.1k
Munish Nanda
Independent Director1.83yrsUS$83.48k0.053% $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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CECENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
WCEDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
WCEBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 02:04
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.