NasdaqGS:CECE

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Executive Summary

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


Snowflake Analysis

Very undervalued with flawless 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CECE's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

CECE

0.9%

US Commercial Services

2.3%

US Market


1 Year Return

-3.6%

CECE

6.6%

US Commercial Services

23.8%

US Market

Return vs Industry: CECE underperformed the US Commercial Services industry which returned 6.6% over the past year.

Return vs Market: CECE underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

CECEIndustryMarket
7 Day-1.8%0.9%2.3%
30 Day9.3%0.06%4.8%
90 Day-1.8%4.3%14.5%
1 Year-3.6%-3.6%8.1%6.6%26.6%23.8%
3 Year51.9%51.9%39.5%29.8%45.0%35.4%
5 Year1.4%-4.0%129.0%105.1%126.2%101.0%

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

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 ($7.49) is trading below our estimate of fair value ($21.52)

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 (17.8x) compared to the US Commercial Services industry average (24.4x).

PE vs Market: CECE is good value based on its PE Ratio (17.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CECE is good value based on its PEG Ratio (0.7x)


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 (2.3x).


Next Steps

Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CECE's forecast earnings growth (24.1% per year) is above the savings rate (2%).

Earnings vs Market: CECE's earnings (24.1% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: CECE's revenue (7.1% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: CECE's revenue (7.1% 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?

38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CECE has a large one-off loss of $4.9M impacting its September 30 2020 financial results.

Growing Profit Margin: CECE's current net profit margins (4.6%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: CECE has become profitable over the past 5 years, growing earnings by 38.3% per year.

Accelerating Growth: CECE's earnings growth over the past year (43.6%) exceeds its 5-year average (38.3% per year).

Earnings vs Industry: CECE earnings growth over the past year (43.6%) exceeded the Commercial Services industry -9%.


Return on Equity

High ROE: CECE's Return on Equity (7.3%) 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 ($184.1M) exceed its short term liabilities ($110.0M).

Long Term Liabilities: CECE's short term assets ($184.1M) exceed its long term liabilities ($110.5M).


Debt to Equity History and Analysis

Debt Level: CECE's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: CECE's debt to equity ratio has reduced from 77.4% to 37.9% over the past 5 years.

Debt Coverage: CECE's debt is well covered by operating cash flow (26.1%).

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


Balance Sheet


Next Steps

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?

4.3yrs

Average management tenure


CEO

Todd Gleason (49 yo)

0.50

Tenure

Mr. Todd R. Gleason serves as Chief Executive Officer and Director at CECO Environmental Corp since July 2020. He was the Chief Executive Officer at Scientific Analytics Inc. He served as Senior Vice Presi...


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Eckl
Chief Financial Officer4yrsUS$710.10k0.26%
$ 698.2k
Paul Gohr
Chief Accounting Officer3.67yrsUS$310.61k0.10%
$ 264.9k
Jonathan Pollack
Assistant Secretary & Director9.67yrsUS$193.00k0.47%
$ 1.2m
Todd Gleason
CEO & Director0.50yrno data0.27%
$ 706.6k
Hillary Jeffries
Chief Human Resources & Administration Officerno datano datano data
Chasity Henry
Senior VPno datano datano data
Gennaro D'Alterio
President of Fluid Handling and Filtration Business Segment6.83yrsno datano data
Stephen Fritz
President of Recurring Revenues4.5yrsno datano data
Ray Smith
Divisional Controller of Air Pollution Control (APC) Technology Segmentno datano datano data

4.3yrs

Average Tenure

48yo

Average Age

Experienced Management: CECE's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Pollack
Assistant Secretary & Director9.67yrsUS$193.00k0.47%
$ 1.2m
Todd Gleason
CEO & Director0.50yrno data0.27%
$ 706.6k
Jason DeZwirek
Chairman of the Board7.67yrsUS$310.00k4.14%
$ 11.0m
Valerie Sachs
Independent Director4.67yrsUS$130.00k0.069%
$ 181.8k
David Liner
Independent Director3.67yrsUS$130.00k0.21%
$ 565.6k
Claudio Mannarino
Independent Director5.58yrsUS$145.00k0.096%
$ 255.0k
Eric Goldberg
Independent Director7.75yrsUS$115.00k0.17%
$ 439.8k
Munish Nanda
Independent Director2.58yrsUS$115.00k0.086%
$ 227.5k

5.1yrs

Average Tenure

50yo

Average Age

Experienced Board: CECE's board of directors are considered experienced (5.1 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$264.898m
  • Shares outstanding: 35.37m
  • 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, I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 23:40
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.