Ceco Environmental (CECO) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: N/A
• Average Volume (3M): 511.38K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 1.17
• Revenue Growth: 15.74%
• EPS Growth: 294.80%
• Country: US
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.24
• Shares Outstanding: 35,328,114
• 10 Day Avg. Volume: 612,882
• 30 Day Avg. Volume: 511,375
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 11.08
• 1Y Price Target: $53.50
• Price Target Upside: 8.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $53.00 ▲(7.59% Upside)

Ceco Environmental's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust revenue growth, improved profitability, and strategic positioning in diverse markets are significant strengths. However, the high P/E ratio and overbought technical indicators suggest caution. The absence of a dividend yield and potential inflationary pressures are additional considerations.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for CECO's solutions, reinforcing its market position and potential for sustained expansion.

Backlog and Orders

A record backlog and increased orders highlight CECO's robust pipeline, ensuring future revenue streams and stability in operations.

Successful Acquisitions

Successful integration of acquisitions like Profire enhances CECO's capabilities and competitive edge, contributing to long-term growth.

Negative Factors

Cash Flow Concerns

Negative operating cash flow poses liquidity risks, potentially affecting CECO's ability to invest in growth and manage debt effectively.

Inflationary Pressures

Inflationary pressures could increase costs, impacting margins and requiring strategic management to maintain profitability.

Interest Expense Impact

Higher interest expenses can reduce net income, affecting profitability and potentially limiting financial flexibility for future initiatives.

Ceco Environmental Business Overview & Revenue Model

Company Description

CECO Environmental Corp. provides industrial air quality and fluid handling systems worldwide. It operates in two segments: Engineered Systems Segment and Industrial Process Solutions Segment. The company engineers, designs, builds, and installs systems that capture, clean, and destroy air- and water-borne emissions from industrial facilities as well as fluid handling, gas separation, and filtration systems. It offers dampers and diverters, selective catalytic reduction and selective non-catalytic reduction systems, cyclonic technology, thermal oxidizers, filtration systems, scrubbers, and water and fluid handling equipment, as well as plant engineering services and engineered design build fabrication. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producer companies. CECO Environmental Corp. was incorporated in 1966 and is headquartered in Dallas, Texas.

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 robust revenue growth and improved profitability, with enhanced margins and reduced leverage. The balance sheet is stable, though there is room for optimizing debt. While cash flow generation needs attention, the company is on a positive trajectory overall, with potential for further financial strengthening.

Income Statement

Ceco Environmental shows strong revenue growth, with a 17.6% increase from 2024 to TTM. Gross profit and net profit margins have improved, indicating better operational efficiency. However, the EBIT and EBITDA margins, while positive, suggest room for further improvement.

Balance Sheet

The company's debt-to-equity ratio has improved, showing a reduction in leverage. Return on equity has increased, reflecting better profitability. However, the equity ratio indicates moderate financial stability, suggesting a need for cautious debt management.

Cash Flow

Operating cash flow has turned negative in the TTM, posing potential liquidity concerns. However, the company maintains positive free cash flow, albeit at a slower growth rate, highlighting a need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	656.17M	557.93M	544.85M	422.63M	324.14M	316.01M
Gross Profit	231.24M	196.15M	171.02M	128.22M	100.92M	105.13M
EBITDA	114.46M	45.23M	47.45M	38.33M	21.89M	30.52M
Net Income	52.46M	12.96M	12.91M	17.42M	1.43M	8.21M
Balance Sheet
Total Assets	876.58M	759.70M	600.29M	504.72M	416.20M	419.31M
Cash, Cash Equivalents and Short-Term Investments	36.82M	37.83M	54.78M	45.52M	29.90M	35.99M
Total Debt	23.30M	249.92M	155.48M	122.89M	74.96M	91.54M
Total Liabilities	573.36M	507.81M	362.80M	286.57M	210.24M	215.70M
Stockholders Equity	298.36M	247.69M	232.64M	213.22M	204.55M	202.66M
Cash Flow
Free Cash Flow	1.42M	7.46M	36.26M	26.27M	10.68M	476.00K
Operating Cash Flow	-2.43M	24.83M	44.65M	29.65M	13.30M	4.42M
Investing Cash Flow	-94.69M	-105.31M	-56.49M	-48.26M	-2.08M	-9.23M
Financing Cash Flow	96.67M	65.91M	21.14M	38.18M	-15.56M	3.72M

Ceco Environmental Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.26
• 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 49.26 is above the 20-day moving average (MA) of 48.32, above the 50-day MA of 44.88, and above the 200-day MA of 31.23, indicating a bullish trend. The MACD of 1.55 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 40.52 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	76 Outperform	$1.76B	34.72	19.67%	―	15.74%	294.80%
ERII	74 Outperform	815.00M	37.07	13.03%	―	6.19%	15.04%
CLIR	56 Neutral	42.26M	-7.17	-38.50%	―	19.03%	11.70%
FTEK	53 Neutral	94.16M	-28.83	-4.63%	―	-4.78%	-1359.72%
SCWO	39 Underperform	46.58M	-2.74	―	―	―	―
PCT	38 Underperform	2.33B	-7.71	―	―	―	-79.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.

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.