Ceco Environmental Corp

Industrials
Pollution Control Equipment
www.cecoenviro.com

Earnings Score
Moat Score
Safety Score

Market Cap $1.14B
PE 95
Debt $143.98M
Cash $38.70M
EV $1.25B
FCF $24.05M

Earnings

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Sales & Net Margins

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Earnings	$11.96M
EBIT	$36.78M
ROE	5%
ROA	6%
FCF	$24.05M
Equity	$245.88M
Growth Stability	23%
PE	95.38
PEG	11.49
PB	4.64
P/FCF	47.43
P/S	1.26
Price/Cash	0.03
Debt/Equity	0.59
Debt/FCF	5.99
Net Margins	1%
Gross Margins	21%
Op. Margins	4%
Earnings CAGR	4%
Sales Growth YoY	-100%
Sales CAGR	6%
FCF CAGR	-5%
Equity CAGR	1%
Earnings Stability	0.02
Earnings Growth YoY	-37%
Earnings Growth QoQ	-53%

Earnings CAGR 5Y	8%
Sales CAGR 5Y	26%
FCF CAGR 5Y	53%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	56%
Sales CAGR 3Y	56%
FCF CAGR 3Y	126%
Equity CAGR 3Y	7%
Market Cap	$1.14B
Revenue	$903.71M
Assets	$621.51M
Total Debt	$143.98M
Cash	$38.70M
Shares Outstanding	34.91M
EV	1.25B
Earnings Score	6%
Moat Score	60%
Safety Score	54%
Final Score	40%
Working Capital	63.11M
Current Ratio	1.3
Gross Profit	$192.63M
Shares Growth 3y	0%
Equity Growth QoQ	3%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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CECO Environmental Corp serves the energy, industrial and other niche markets. The company operates through the Engineered Systems segment that serves the power generation, refinery, water/wastewater, and midstream oil & gas markets, and Industrial Process Solutions segment, which serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. The majority of revenue is earned from the Engineered Systems Segment.

SEC Filings

Direct access to Ceco Environmental Corp (CECO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Ceco Environmental Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Ceco Environmental Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability 2%

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Ceco Environmental Corp Discounted Cash Flow

Fully customizable DCF calculator online for Ceco Environmental Corp.

Years

Calculation mode

= $172M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$24M	$23M	$22M	$21M	$20M	$19M	$18M	$17M	$16M	$15M	$14M	$143M
DCF		$21M	$18M	$15M	$13M	$12M	$9.9M	$8.6M	$7.4M	$6.4M	$5.5M	$55M
Value	$172M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	-2%	-9%	-1%	-2%	5%	3%	0%	4%	2%	1%
ROA	-	1%	-5%	2%	3%	4%	3%	2%	5%	6%	6%
ROE	-	-2%	-20%	-2%	-4%	9%	4%	1%	8%	5%	5%

Bad Net Margins (1.08%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	16.58	1.93	22.76	4.04	14.87	159.12	6.18	4.37	4.07	5.99
Debt over Equity	0.67	0.8	0.69	0.68	0.43	0.35	0.37	0.32	0.53	0.62	0.59
Growth Stability	-	-	-	-	-	-	100%	23%	100%	100%	23%

Bad Debt/FCF ratio (5.99)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.59)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (23%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	40%	13%	-17%	-2%	1%	-8%	3%	30%	29%	26%
Earnings YoY growth	-	-144%	567%	-92%	135%	-349%	-54%	-83%	1K%	-26%	8%
Equity YoY growth	-	35%	-22%	-2%	-4%	8%	5%	1%	6%	9%	5%
FCF YoY growth	-	-21%	477%	-92%	240%	-76%	-90%	2K%	146%	38%	53%