Ceco Environmental (CECO) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: N/A
• Average Volume (3M): 580.90K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.14
• 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: 535,526
• 30 Day Avg. Volume: 580,900
• 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: 0.71
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 5.48
• Enterprise Value/Ebitda: 11.08
• 1Y Price Target: $55.75
• Price Target Upside: 13.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $56.00 ▲(14.29% Upside)

CECO Environmental's strong earnings call performance and robust financial growth are the most significant factors driving the score. While technical indicators and valuation present some caution, the company's strategic growth and improved financial outlook support a positive overall assessment.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective sales strategies, enhancing long-term financial stability.

Backlog Growth

A growing backlog suggests robust future revenue streams and sustained demand for CECO's solutions, supporting long-term growth.

Improved Financial Outlook

An improved financial outlook reflects management's confidence in strategic initiatives and market positioning, indicating potential for continued success.

Negative Factors

Cash Flow Concerns

Negative operating cash flow can strain liquidity and limit investment capacity, posing risks to financial flexibility and growth.

Interest Expense Impact

Higher interest expenses reduce net profitability, potentially impacting reinvestment and shareholder returns if not managed effectively.

Inflationary Pressures

Inflationary pressures can increase costs, squeezing margins and necessitating strategic adjustments to maintain profitability.

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: 49.00
• 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 is below the 20-day moving average (MA) of 50.46, above the 50-day MA of 48.58, and above the 200-day MA of 32.90, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.95 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	74 Outperform	$1.77B	35.23	19.67%	―	15.74%	294.80%
ERII	73 Outperform	$905.97M	41.52	11.95%	―	6.19%	15.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLIR	54 Neutral	$44.61M	―	-46.19%	―	19.03%	11.70%
FTEK	50 Neutral	$93.22M	―	-7.69%	―	-4.78%	-1359.72%
SCWO	39 Underperform	$63.08M	―	-160.82%	―	―	―
PCT	38 Underperform	$2.55B	―	-148.91%	―	―	-79.12%

Ceco Environmental Corporate Events

CECO Environmental Reports Strong Q2 2025 Growth

CECO Environmental Corp., headquartered in Addison, Texas, is a diversified industrial company that provides environmentally focused solutions to improve air and water quality, optimize emissions management, and enhance energy efficiency across various industrial sectors globally.

CECO Environmental Reports Strong Q2 2025 Growth

CECO Environmental Corp. recently held its second quarter 2025 earnings call, revealing a robust performance and a positive outlook for the future. The sentiment during the call was overwhelmingly optimistic, driven by significant growth in backlog, bookings, revenue, and EBITDA. Despite some concerns about modest inflation and previous project delays, the company’s strong performance and raised guidance underscore a bright future.

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.