Ceco Environmental (CECO) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 607.49K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 1.16
• Revenue Growth: 29.86%
• EPS Growth: 331.33%
• Country: US
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.26
• Shares Outstanding: 35,641,030
• 10 Day Avg. Volume: 710,603
• 30 Day Avg. Volume: 607,490
• PEG Ratio: 0.00
• Price to Book (P/B): 4.26
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 141.54
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.90
• Enterprise Value/Gross Profit: 8.31
• Enterprise Value/Ebitda: 16.93
• 1Y Price Target: $58.75
• Price Target Upside: 20.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: $54.00 ▲(10.45% Upside)

CECO Environmental's strong financial performance and positive earnings call outlook are the most significant factors contributing to its stock score. However, technical indicators suggest mixed momentum, and the high P/E ratio indicates potential overvaluation. The company's challenges in cash flow management also weigh on the overall score.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand for CECO's products and services, supporting its market position and future expansion.

Backlog Growth

A growing backlog suggests sustained demand and provides revenue visibility, enhancing CECO's ability to plan and invest for future growth.

Sales Pipeline

A robust sales pipeline signifies potential for continued revenue growth, supporting strategic initiatives and long-term financial performance.

Negative Factors

Cash Flow Management

Negative operating cash flow can strain liquidity, limiting CECO's ability to invest in growth opportunities and manage financial obligations.

Interest Expense Impact

Increased interest expenses reduce net income, potentially affecting CECO's profitability and ability to reinvest in the business.

Seasonal Gross Margin Decline

Declining gross margins can impact profitability, highlighting the need for better cost management and project selection to maintain financial health.

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	718.25M	557.93M	544.85M	422.63M	324.14M	316.01M
Gross Profit	250.55M	196.15M	171.02M	128.22M	100.92M	105.13M
EBITDA	123.00M	45.23M	47.45M	38.33M	21.89M	30.52M
Net Income	51.87M	12.96M	12.91M	17.42M	1.43M	8.21M
Balance Sheet
Total Assets	891.88M	759.70M	600.29M	504.72M	416.20M	419.31M
Cash, Cash Equivalents and Short-Term Investments	32.79M	37.83M	54.78M	45.52M	29.90M	35.99M
Total Debt	25.21M	249.92M	155.48M	122.89M	74.96M	91.54M
Total Liabilities	578.32M	507.81M	362.80M	286.57M	210.24M	215.70M
Stockholders Equity	309.21M	247.69M	232.64M	213.22M	204.55M	202.66M
Cash Flow
Free Cash Flow	8.96M	7.46M	36.26M	26.27M	10.68M	476.00K
Operating Cash Flow	-2.27M	24.83M	44.65M	29.65M	13.30M	4.42M
Investing Cash Flow	-77.60M	-105.31M	-56.49M	-48.26M	-2.08M	-9.23M
Financing Cash Flow	77.59M	65.91M	21.14M	38.18M	-15.56M	3.72M

Ceco Environmental Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 48.89
• 50DMA: Negative
• 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 Neutral. The current price of 48.89 is below the 20-day moving average (MA) of 50.20, below the 50-day MA of 49.25, and above the 200-day MA of 33.63, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CECO.

Ceco Environmental Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERII	―	$910.22M	41.40	11.95%	―	6.19%	15.04%
CECO	―	$1.74B	34.54	18.85%	―	29.86%	331.33%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLIR	―	$45.61M	-7.74	-46.19%	―	19.03%	11.70%
FTEK	―	$77.06M	-23.60	-7.69%	―	-4.78%	-1359.72%
SCWO	―	$64.65M	-3.40	-160.82%	―	―	―
PCT	―	$2.09B	―	-148.91%	―	―	-79.12%

Ceco Environmental Corporate Events

CECO Environmental Reports Record Growth in Q3 2025

CECO Environmental’s recent earnings call for Q3 2025 painted a picture of robust growth and optimism for the future. The company reported record-breaking revenue and backlog figures, alongside a strong order intake, which contributed to a generally positive sentiment. Despite facing challenges such as a seasonal decline in gross margins and increased interest expenses, CECO’s impressive sales pipeline and significant growth in adjusted EBITDA and EPS have bolstered confidence in its future performance.

CECO Environmental Reports Strong Q3 2025 Results

CECO Environmental Corp. is a diversified industrial company that provides environmentally focused solutions for industrial air, water, and energy transition markets globally. The company reported a strong third quarter in 2025, with significant growth in orders, revenue, and backlog, setting multiple performance records. Key financial highlights include a 44% increase in orders to $232.9 million, a 46% rise in revenue to $197.6 million, and a 62% increase in adjusted EBITDA to $23.2 million. Despite a slight decrease in GAAP net income, non-GAAP net income rose by 79% to $9.3 million. CECO reaffirmed its 2025 full-year outlook and introduced a robust 2026 outlook, projecting continued growth in revenue and adjusted EBITDA. The company remains optimistic about its future, supported by a strong sales pipeline and strategic initiatives aimed at expanding market opportunities and operational excellence.