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CECE

CECO EnvironmentalNasdaqGS:CECE Stock Report

Market Cap

US$247.7m

7D

3.3%

1Y

-2.7%

Updated

26 Sep, 2021

Data

Company Financials +
CECE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health5/6
Dividends0/6

CECE Overview

CECO Environmental Corp. provides industrial air quality and fluid handling systems for the energy, industrial, and other niche markets 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$6.95
52 Week HighUS$5.95
52 Week LowUS$9.47
Beta1.32
1 Month Change-8.43%
3 Month Change-3.47%
1 Year Change-2.66%
3 Year Change-11.80%
5 Year Change-38.39%
Change since IPO93.39%

Recent News & Updates

Shareholder Returns

CECEUS Commercial ServicesUS Market
7D3.3%1.5%0.1%
1Y-2.7%29.5%35.3%

Return vs Industry: CECE underperformed the US Commercial Services industry which returned 29.5% over the past year.

Return vs Market: CECE underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is CECE's price volatile compared to industry and market?
CECE volatility
CECE Beta1.32
Industry Beta1.04
Market Beta1

Stable Share Price: CECE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CECE's weekly volatility (5%) 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 for the energy, industrial, and other niche markets worldwide. It 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.

CECO Environmental Fundamentals Summary

How do CECO Environmental's earnings and revenue compare to its market cap?
CECE fundamental statistics
Market CapUS$247.65m
Earnings (TTM)US$3.02m
Revenue (TTM)US$310.93m

82.1x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CECE income statement (TTM)
RevenueUS$310.93m
Cost of RevenueUS$210.23m
Gross ProfitUS$100.70m
ExpensesUS$97.68m
EarningsUS$3.02m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.085
Gross Margin32.39%
Net Profit Margin0.97%
Debt/Equity Ratio32.6%

How did CECE perform over the long term?

See historical performance and comparison

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 ($6.95) is trading below our estimate of fair value ($20.6)

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 (82.1x) compared to the US Commercial Services industry average (33.3x).

PE vs Market: CECE is poor value based on its PE Ratio (82.1x) compared to the US market (17.9x).


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 (1.2x) compared to the US Commercial Services industry average (2.6x).


Future Growth

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

114.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CECE's forecast earnings growth (114.4% per year) is above the savings rate (2%).

Earnings vs Market: CECE's earnings (114.4% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: CECE's revenue (10.2% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CECE's revenue (10.2% 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?

52.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CECE has a large one-off loss of $6.6M impacting its June 30 2021 financial results.

Growing Profit Margin: CECE's current net profit margins (1%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: CECE has become profitable over the past 5 years, growing earnings by 52.1% 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 (-82.3%) over the past year, making it difficult to compare to the Commercial Services industry average (30.4%).


Return on Equity

High ROE: CECE's Return on Equity (1.5%) is considered low.


Financial Health

How is CECO Environmental's financial position?


Financial Position Analysis

Short Term Liabilities: CECE's short term assets ($180.2M) exceed its short term liabilities ($104.9M).

Long Term Liabilities: CECE's short term assets ($180.2M) exceed its long term liabilities ($98.9M).


Debt to Equity History and Analysis

Debt Level: CECE's debt to equity ratio (32.6%) is considered satisfactory.

Reducing Debt: CECE's debt to equity ratio has reduced from 61.7% to 32.6% over the past 5 years.

Debt Coverage: CECE's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: CECE's interest payments on its debt are well covered by EBIT (5.6x 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?

4.3yrs

Average management tenure


CEO

Todd Gleason (50 yo)

1.17yrs

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 ($USD3.54M) is above average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Insufficient data to compare Todd's compensation with company performance.


Leadership Team

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


Board Members

Experienced Board: CECE's board of directors are considered experienced (5.8 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
  • Market Cap: US$247.652m
  • Shares outstanding: 35.63m
  • 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 Analysis2021/09/26 22:05
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.