Ceco Environmental (CECO) AI Stock Analysis

• Market Cap: $957.17M
• Dividend Yield: N/A
• Average Volume (3M): 233.89K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 1.30
• Revenue Growth: 8.89%
• EPS Growth: 278.44%
• Country: US
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.10
• Shares Outstanding: 35,267,940
• 10 Day Avg. Volume: 244,549
• 30 Day Avg. Volume: 233,890
• PEG Ratio: 0.03
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.41
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 1.88
• 1Y Price Target: $34.00
• Price Target Upside: 21.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: $31.00 ▲(11.23%Upside)

Ceco Environmental has a strong overall stock score driven by solid financial performance and positive earnings call highlights. Technical indicators and valuation scores suggest moderate optimism, balanced by potential risks such as tariff challenges and low dividend yield.

Positive Factors

Backlog and Demand

Backlog grew to $602M at the end of 1Q25 compared to $541M at the end of 4Q24, indicating strong future demand.

Future Business Prospects

The company's 2025 outlook and future business prospects give confidence that the company's financial results should remain solid given the company's participation in various infrastructure-driven end-markets.

Revenue Growth

Q1 revenues increased 40% (+13% organic), well above consensus estimates of 20% growth.

Negative Factors

Revenue Execution

The stock recently saw a pullback driven by lower-than-guided revenue execution for 2024.

Risks and Challenges

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

Ceco Environmental Business Overview & Revenue Model

Company Description

CECO Environmental Corp. is a leading global provider of environmental and industrial solutions. The company operates in several sectors, including air pollution control, energy, and fluid handling, serving industries such as power generation, petrochemical, refining, and manufacturing. CECO designs and manufactures a wide range of products and systems, including air filtration equipment, emissions control technology, and fluid handling solutions, aimed at optimizing operational efficiency and ensuring environmental compliance for its clients.

How the Company Makes Money

CECO Environmental makes money through the sale and servicing of its diverse product lines, which primarily focus on air pollution control, fluid handling, and energy solutions. Revenue streams include equipment sales, maintenance contracts, and aftermarket services, ensuring continued operational efficiency and regulatory compliance for its customers. The company benefits from strategic partnerships and long-term contracts with major industrial players, which contribute significantly to its earnings. Additionally, CECO's emphasis on innovation and customized solutions helps attract a broad customer base across various industries, further enhancing its revenue potential.

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. However, there are opportunities for enhancement in profitability and cash flow metrics.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
608.30M	557.93M	544.85M	422.63M	324.14M	316.01M
	Gross Profit
210.98M	196.15M	171.02M	128.22M	100.92M	105.13M
	EBIT
90.71M	35.40M	34.57M	34.89M	9.86M	21.44M
	EBITDA
101.98M	45.23M	47.45M	38.33M	21.89M	30.52M
	Net Income Common Stockholders
47.43M	12.96M	12.91M	17.42M	1.98M	8.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.47M	37.83M	54.78M	45.52M	29.90M	35.99M
	Total Assets
957.10M	759.70M	600.29M	504.72M	416.20M	419.31M
	Total Debt
363.84M	245.07M	155.48M	119.66M	72.54M	81.93M
	Net Debt
217.37M	207.24M	100.70M	74.14M	42.64M	45.93M
	Total Liabilities
667.04M	507.81M	362.80M	286.57M	210.24M	215.70M
	Stockholders Equity
285.79M	247.69M	232.64M	213.22M	204.55M	202.66M
Cash Flow		Free Cash Flow
11.64M	7.46M	36.26M	26.27M	10.68M	476.00K
	Operating Cash Flow
11.91M	24.83M	44.65M	29.65M	13.30M	4.42M
	Investing Cash Flow
-97.79M	-105.31M	-56.49M	-48.26M	-2.08M	-9.23M
	Financing Cash Flow
188.19M	65.91M	21.14M	38.18M	-15.56M	3.72M

Ceco Environmental Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 27.87 is above the 20-day moving average (MA) of 27.22, above the 50-day MA of 24.01, and above the 200-day MA of 26.68, indicating a bullish trend. The MACD of 0.69 indicates Positive momentum. The RSI at 60.36 is Neutral, neither overbought nor oversold. The STOCH value of 58.46 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
CECO	79 Outperform	$957.17M	21.52	18.34%	―	8.89%	278.44%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
ERII	64 Neutral	$691.05M	34.50	10.35%	―	10.93%	6.99%
CLIR	55 Neutral	$32.40M	―	-75.96%	―	10.88%	3.57%
FTEK	54 Neutral	$60.02M	―	-6.95%	―	7.30%	-247.48%
LIQT	54 Neutral	$15.38M	―	-69.66%	―	-17.77%	0.86%
TOMZ	51 Neutral	$22.02M	―	-62.68%	―	19.09%	3.50%

Ceco Environmental Corporate Events

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.