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

Fundamentals

Adequate balance sheet and fair 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


Market Performance


7 Day Return

-4.1%

CECE

1.3%

US Commercial Services

1.3%

US Market


1 Year Return

-10.7%

CECE

15.9%

US Commercial Services

5.9%

US Market

Return vs Industry: CECE underperformed the US Commercial Services industry which returned 15.9% over the past year.

Return vs Market: CECE underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

CECEIndustryMarket
7 Day-4.1%1.3%1.3%
30 Day-11.6%1.8%-1.9%
90 Day-26.6%0.9%-1.8%
1 Year-10.7%-10.7%20.4%15.9%8.3%5.9%
3 Year-35.1%-37.0%69.9%58.3%45.6%36.2%
5 Year-43.2%-48.0%105.8%85.0%66.1%47.9%

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

Undervalued: CECE ($6.71) is trading below our estimate of fair value ($23.04)

Significantly Undervalued: CECE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CECE is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: CECE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CECE's PEG Ratio to determine if it is good value.


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 (1.8x).


Next Steps

Future Growth

How is CECO Environmental forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CECE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CECE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CECE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CECE's revenue (4.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CECE's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-38.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CECE is unprofitable, and losses have increased over the past 5 years at a rate of -38.8% per year.

Accelerating Growth: Unable to compare CECE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CECE is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-2.4%).


Return on Equity

High ROE: CECE has a negative Return on Equity (-2.52%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CECE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CECE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CECO Environmental's financial position?


Financial Position Analysis

Short Term Liabilities: CECE's short term assets ($160.5M) exceeds its short term liabilities ($99.6M)

Long Term Liabilities: CECE's short term assets (160.5M) exceeds its long term liabilities (109.6M)


Debt to Equity History and Analysis

Debt Level: CECE's debt to equity ratio (41.1%) is considered high

Reducing Debt: CECE's debt to equity ratio has reduced from 45.1% to 41.1% over the past 5 years.


Balance Sheet

Inventory Level: CECE has a low level of unsold assets or inventory.

Debt Coverage by Assets: CECE's debt is covered by short term assets (assets are 2.139070x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CECE has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CECE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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 .


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

What is the CEO of CECO Environmental's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Dennis Sadlowski (58yo)

2.8yrs

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 ($USD2.06M) is about average for companies of similar size in the US market ($USD1.18M).

Compensation vs Earnings: Dennis's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: CECE's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

51.5yo

Average Age

Experienced Board: CECE's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: CECE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$20,70027 Aug 19
David Liner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$6.90
BuyUS$14,00016 Aug 19
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,000
Max PriceUS$7.00
BuyUS$15,46613 May 19
Matthew Eckl
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,900
Max PriceUS$8.14
BuyUS$28,92028 Mar 19
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,000
Max PriceUS$7.23
BuyUS$35,65011 Mar 19
David Liner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$7.13
BuyUS$6,59029 Dec 18
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,000
Max PriceUS$6.59
BuyUS$11,29512 Dec 18
Dennis Sadlowski
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,500
Max PriceUS$7.53
BuyUS$39,30028 Nov 18
David Liner
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$7.86

Ownership Breakdown


Management Team

  • Jonathan Pollack (48yo)

    Assistant Secretary & Director

    • Tenure: 8.4yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.06m
  • Gennaro D'Alterio (47yo)

    President of Fluid Handling and Filtration Business Segment

    • Tenure: 5.6yrs
  • Jeff Lang (62yo)

    Executive Officer

    • Tenure: 2.7yrs
    • Compensation: US$924.79k
  • Hillary Jeffries

    Chief Human Resources & Administration Officer

    • Tenure: 0yrs
  • Ray Smith

    Divisional Controller of Air Pollution Control (APC) Technology Segment

    • Tenure: 0yrs
  • Steve Fritz

    President of Recurring Revenues

    • Tenure: 3.3yrs
  • Matt Eckl (38yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$939.37k
  • Paul Gohr (37yo)

    Chief Accounting Officer

    • Tenure: 2.4yrs
    • Compensation: US$374.39k

Board Members

  • Jason DeZwirek (48yo)

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$310.00k
  • Valerie Sachs (63yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$130.00k
  • Jonathan Pollack (48yo)

    Assistant Secretary & Director

    • Tenure: 8.4yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$2.06m
  • David Liner (63yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$130.00k
  • Claudio Mannarino (49yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$145.00k
  • Eric Goldberg (49yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$115.00k
  • Munish Nanda (54yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$83.48k

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$236.225m
  • Shares outstanding: 35.20m
  • 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, E ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:32
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.