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.

Risks

  • CECO Environmental has significant price volatility in the past 3 months.

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

6.4%

NasdaqGS:CECE

1.0%

US Commercial Services

0.8%

US Market


1 Year Return

-5.2%

NasdaqGS:CECE

4.7%

US Commercial Services

1.9%

US Market

CECE underperformed the Commercial Services industry which returned 4.1% over the past year.

CECE underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CECEIndustryMarket
7 Day6.4%1.0%0.8%
30 Day8.5%0.3%3.4%
90 Day-14.1%-0.04%2.1%
1 Year-5.2%-5.2%8.6%4.7%4.2%1.9%
3 Year-26.1%-28.2%67.3%55.9%46.7%37.2%
5 Year-38.8%-43.9%102.1%81.9%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CECO Environmental's share price is below the future cash flow value, and at a moderate discount (> 20%).

CECO Environmental's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

CECO Environmental is loss making, we can't compare its value to the US Commercial Services industry average.

CECO Environmental is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for CECO Environmental, we can't assess if its growth is good value.


Price Based on Value of Assets

CECO Environmental is good value based on assets compared to the US Commercial Services industry average.


Next Steps

Future Growth

How is CECO Environmental expected 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 Estimates


Future Annual Growth Analysis

CECO Environmental's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

CECO Environmental's earnings are expected to grow significantly at over 20% yearly.

CECO Environmental's revenue growth is positive but not above the United States of America market average.

CECO Environmental's earnings growth is expected to exceed the United States of America market average.

CECO Environmental's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if CECO Environmental will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

CECO Environmental does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare CECO Environmental's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare CECO Environmental's 1-year growth to the US Commercial Services industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if CECO Environmental has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

CECO Environmental used its assets less efficiently than the US Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if CECO Environmental improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is CECO Environmental's financial position?


Financial Position Analysis

CECO Environmental is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CECO Environmental's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

CECO Environmental's level of debt (41.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (45.1% vs 41.1% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.1x 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.

CECO Environmental has sufficient cash runway for more than 3 years based on current free cash flow.

Unable to confirm if CECO Environmental has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate CECO Environmental's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate CECO Environmental's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as CECO Environmental has not reported any payouts.

Unable to verify if CECO Environmental's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as CECO Environmental has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Dennis Sadlowski (58yo)

2.7yrs

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

Dennis's remuneration is higher than average for companies of similar size in United States of America.

Dennis's compensation has increased whilst company is loss making.


Management Age and Tenure

2.7yrs

Average Tenure

47.5yo

Average Age

The tenure for the CECO Environmental management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

51.5yo

Average Age

The tenure for the CECO Environmental board of directors is about average.


Insider Trading

More shares have been bought than sold by CECO Environmental individual insiders in the past 3 months, but not in substantial volumes.


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: 8.3yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$2.06m
  • Gennaro D'Alterio (47yo)

    President of Fluid Handling and Filtration Business Segment

    • Tenure: 5.5yrs
  • Jeff Lang (62yo)

    Executive Officer

    • Tenure: 2.6yrs
    • 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: 3.2yrs
  • Matt Eckl (38yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: US$939.37k
  • Paul Gohr (37yo)

    Chief Accounting Officer

    • Tenure: 2.3yrs
    • Compensation: US$374.39k

Board Members

  • Jason DeZwirek (48yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: US$310.00k
  • Valerie Sachs (63yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$130.00k
  • Jonathan Pollack (48yo)

    Assistant Secretary & Director

    • Tenure: 8.3yrs
    • Compensation: US$193.00k
  • Dennis Sadlowski (58yo)

    CEO & Director

    • Tenure: 2.7yrs
    • Compensation: US$2.06m
  • David Liner (63yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$130.00k
  • Claudio Mannarino (49yo)

    Director

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

    Director

    • Tenure: 6.4yrs
    • 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$268.613m
  • 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 Analysis2019/09/17 23:33
End of Day Share Price2019/09/17 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.