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CECE

CECO Environmental NasdaqGS:CECE Stock Report

Last Price

US$9.92

Market Cap

US$342.2m

7D

10.6%

1Y

43.8%

Updated

16 Aug, 2022

Data

Company Financials +
CECE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

CECE Stock Overview

CECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide.

CECO Environmental Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CECO Environmental
Historical stock prices
Current Share PriceUS$9.92
52 Week HighUS$10.15
52 Week LowUS$4.09
Beta1.26
1 Month Change60.00%
3 Month Change68.42%
1 Year Change43.77%
3 Year Change40.71%
5 Year Change39.72%
Change since IPO176.04%

Recent News & Updates

Shareholder Returns

CECEUS Commercial ServicesUS Market
7D10.6%2.5%3.6%
1Y43.8%1.1%-9.6%

Return vs Industry: CECE exceeded the US Commercial Services industry which returned 1.1% over the past year.

Return vs Market: CECE exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is CECE's price volatile compared to industry and market?
CECE volatility
CECE Average Weekly Movement6.8%
Commercial Services Industry Average Movement6.6%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: CECE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CECE's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1966730Todd Gleasonhttps://www.cecoenviro.com

CECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide. It operates in two segments: Engineered Systems Segment and Industrial Process Solutions Segment. The company engineers, designs, builds, and installs systems that capture, clean, and destroy air- and water-borne emissions from industrial facilities as well as fluid handling, gas separation, and filtration systems.

CECO Environmental Fundamentals Summary

How do CECO Environmental's earnings and revenue compare to its market cap?
CECE fundamental statistics
Market CapUS$342.23m
Earnings (TTM)US$7.13m
Revenue (TTM)US$371.38m

48.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CECE income statement (TTM)
RevenueUS$371.38m
Cost of RevenueUS$262.02m
Gross ProfitUS$109.36m
Other ExpensesUS$102.23m
EarningsUS$7.13m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.21
Gross Margin29.45%
Net Profit Margin1.92%
Debt/Equity Ratio45.9%

How did CECE perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CECE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CECE?

Other financial metrics that can be useful for relative valuation.

CECE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA14.2x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does CECE's PE Ratio compare to its peers?

CECE PE Ratio vs Peers
The above table shows the PE ratio for CECE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.4x
HCCI Heritage-Crystal Clean
11.7x-9.5%US$824.9m
BV BrightView Holdings
40.9x64.4%US$1.0b
SP SP Plus
17.9x20.1%US$833.3m
BNET Bion Environmental Technologies
7.1xn/aUS$60.7m
CECE CECO Environmental
48x28.1%US$342.2m

Price-To-Earnings vs Peers: CECE is expensive based on its Price-To-Earnings Ratio (48x) compared to the peer average (19.4x).


Price to Earnings Ratio vs Industry

How does CECE's PE Ratio compare vs other companies in the US Commercial Services Industry?

Price-To-Earnings vs Industry: CECE is expensive based on its Price-To-Earnings Ratio (48x) compared to the US Commercial Services industry average (20.4x)


Price to Earnings Ratio vs Fair Ratio

What is CECE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CECE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48x
Fair PE Ratio22.3x

Price-To-Earnings vs Fair Ratio: CECE is expensive based on its Price-To-Earnings Ratio (48x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).


Share Price vs Fair Value

What is the Fair Price of CECE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CECE ($9.92) is trading below our estimate of fair value ($22.5)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is CECO Environmental forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CECE's forecast earnings growth (28.1% per year) is above the savings rate (1.9%).

Earnings vs Market: CECE's earnings (28.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CECE's revenue (3.7% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: CECE's revenue (3.7% 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


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Past Performance

How has CECO Environmental performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


56.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CECE has a large one-off loss of $4.4M impacting its June 30 2022 financial results.

Growing Profit Margin: CECE's current net profit margins (1.9%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: CECE has become profitable over the past 5 years, growing earnings by 56.8% per year.

Accelerating Growth: CECE's earnings growth over the past year (136.6%) exceeds its 5-year average (56.8% per year).

Earnings vs Industry: CECE earnings growth over the past year (136.6%) exceeded the Commercial Services industry 23.4%.


Return on Equity

High ROE: CECE's Return on Equity (3.7%) is considered low.


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Financial Health

How is CECO Environmental's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CECE's short term assets ($218.7M) exceed its short term liabilities ($144.0M).

Long Term Liabilities: CECE's short term assets ($218.7M) exceed its long term liabilities ($127.2M).


Debt to Equity History and Analysis

Debt Level: CECE's net debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: CECE's debt to equity ratio has reduced from 54.3% to 45.9% over the past 5 years.

Debt Coverage: CECE's debt is well covered by operating cash flow (28.9%).

Interest Coverage: CECE's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: CECE is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CECE has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Todd Gleason (51 yo)

2.08yrs

Tenure

US$1,979,299

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 ($USD1.98M) is about average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

Experienced Management: CECE's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: CECE's board of directors are considered experienced (4.7 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 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
  • Implied Market Cap: US$342.232m
  • Shares outstanding: 34.50m
  • Website: https://www.cecoenviro.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.