Ceco Environmental (CECO) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: N/A
• Average Volume (3M): 368.89K
• Price to Earnings (P/E): 31.2
• Beta (1Y): 1.14
• Revenue Growth: 15.74%
• EPS Growth: 294.80%
• Country: US
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.24
• Shares Outstanding: 35,328,114
• 10 Day Avg. Volume: 538,176
• 30 Day Avg. Volume: 368,887
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 11.74
• 1Y Price Target: $47.83
• Price Target Upside: 7.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $49.00 ▲(9.74% Upside)

The most significant factor contributing to the stock's score is the positive earnings call, with record backlog and bookings growth, leading to a raised annual guidance. Financial performance is strong, with improved profitability and reduced leverage. However, technical analysis indicates potential for a pullback due to overbought conditions, and valuation suggests moderate overvaluation without dividend support.

Positive Factors

Business Growth

The company's backlog grew to $602M at the end of 1Q25 compared to $541M at the end of 4Q24, indicating strong future demand.

Financial Performance

CECO posted better-than-expected Q2 results, as revenues increased 35% (+15% organic), above consensus estimates of 30% growth.

Market Outlook

CECO Environmental is being upgraded to a 'Buy' from 'Neutral' due to strong 1Q25 results and confidence in the company's future business prospects.

Negative Factors

Merger Integration

Risks such as execution, regulatory, and merger integration could impact the company's performance.

Operational Risks

Risks include execution risk, regulatory risk, dependency on subcontractors, merger integration risk, dilution risk, and uncertainty due to global macroeconomic and geopolitical environment.

Ceco Environmental Business Overview & Revenue Model

Company Description

Ceco Environmental (CECO) is a leading provider of environmental technologies and solutions focused on air quality, water and wastewater treatment, and waste management. The company operates primarily in sectors such as industrial, commercial, and municipal markets, offering a range of core products and services including air pollution control systems, liquid filtration and separation technologies, and waste-to-energy solutions. CECO's innovative technologies are designed to help clients comply with environmental regulations while improving operational efficiency and sustainability.

How the Company Makes Money

CECO generates revenue through the sale of its environmental technologies and services, which include equipment sales, installation, maintenance, and consulting services. Key revenue streams consist of project-based contracts for customized solutions, ongoing service agreements, and the sale of replacement parts and consumables. The company also benefits from strategic partnerships with other industrial firms and government agencies, which enhance its market reach and enable collaborative projects. Additionally, CECO's focus on sustainability and compliance with environmental regulations positions it favorably in a growing market, contributing to its earnings through increased demand for its solutions.

Ceco Environmental Financial Statement Overview

Summary

Ceco Environmental demonstrates solid financial health with strong revenue and profit growth, a stable balance sheet with low leverage, and positive free cash flow. While profitability and cash flow metrics suggest opportunities for enhancement, the company is well-positioned for future growth.

Income Statement

Ceco Environmental has shown strong revenue growth with a TTM revenue of $608.3M, up from $557.9M in the prior year. Gross profit margin improved to 34.7%, and the net profit margin increased to 7.8%, indicating enhanced profitability. The EBIT margin also improved significantly to 14.9%, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.08, indicating low leverage. The equity ratio stands at 29.9%, showing a stable equity base. However, the return on equity is moderate at 16.6%, suggesting room for improvement in asset utilization.

Cash Flow

Ceco Environmental's cash flow position is stable with a positive free cash flow of $15.0M. The operating cash flow to net income ratio is 0.25, which is relatively low, suggesting opportunities for improving cash generation relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	557.93M	544.85M	422.63M	324.14M	316.01M
Gross Profit	196.15M	171.02M	128.22M	100.92M	105.13M
EBITDA	45.23M	47.45M	38.33M	21.89M	30.52M
Net Income	12.96M	12.91M	17.42M	1.98M	8.21M
Balance Sheet
Total Assets	759.70M	600.29M	504.72M	416.20M	419.31M
Cash, Cash Equivalents and Short-Term Investments	37.83M	54.78M	45.52M	29.90M	35.99M
Total Debt	249.92M	155.48M	119.66M	72.54M	81.93M
Total Liabilities	507.81M	362.80M	286.57M	210.24M	215.70M
Stockholders Equity	247.69M	232.64M	213.22M	204.55M	202.66M
Cash Flow
Free Cash Flow	7.46M	36.26M	26.27M	10.68M	476.00K
Operating Cash Flow	24.83M	44.65M	29.65M	13.30M	4.42M
Investing Cash Flow	-105.31M	-56.49M	-48.26M	-2.08M	-9.23M
Financing Cash Flow	65.91M	21.14M	38.18M	-15.56M	3.72M

Ceco Environmental Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CECO, the sentiment is Positive. The current price of 44.65 is above the 20-day moving average (MA) of 40.63, above the 50-day MA of 33.70, and above the 200-day MA of 28.27, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 69.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CECO.

Ceco Environmental Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERII	75 Outperform	$770.84M	35.06	11.95%	―	6.19%	15.04%
CECO	74 Outperform	$1.58B	31.19	19.67%	―	15.74%	294.80%
LIQT	58 Neutral	$19.13M	―	-78.97%	―	-12.76%	15.23%
Sector *	58 Neutral	HK$13.62B	5.49	-2.78%	5.72%	2.29%	-57.50%
FTEK	56 Neutral	$88.56M	―	-7.69%	―	-4.78%	-1359.72%
CLIR	50 Neutral	$27.79M	―	-75.96%	―	10.88%	3.57%
TOMZ	41 Neutral	$18.82M	―	-62.68%	―	19.09%	3.50%

Ceco Environmental Corporate Events

CECO Environmental Announces Departure of Senior VP

CECO Environmental Corp. announced the upcoming departure of Lynn Watkins-Asiyanbi, the Senior Vice President and Chief Administrative and Legal Officer, effective August 15, 2025. The company has entered into a separation agreement with her, which includes severance payments and benefits, as well as conditions related to non-disparagement, non-competition, and non-solicitation covenants.

The most recent analyst rating on (CECO) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Ceco Environmental stock, see the CECO Stock Forecast page.

CECO Environmental Holds Annual Stockholder Meeting

On May 20, 2025, CECO Environmental Corp. held its annual meeting of stockholders where eight directors were elected, executive compensation was approved, and Deloitte was ratified as the independent auditor for fiscal 2025. The meeting also established an annual advisory vote on executive compensation, reflecting shareholder engagement in governance matters.

The most recent analyst rating on (CECO) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Ceco Environmental stock, see the CECO Stock Forecast page.