CECO

CECO Environmental Corp.

Fundamental data last updated:October 30, 2026

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company profile

SECTOR

Industrials

industry

Industrial - Pollution & Treatment Controls

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions in the United States, the United Kingdom, the Netherlands, China, and internationally. It operates through Engineered Systems and Industrial Process Solutions segments. The company offers emissions management, fluid bed cyclones, thermal acoustics, and separation and filtration solutions; engineering services and environmental systems; and industrial exhaust air contamination treatment and control systems, solutions, and services, as well as intelligent control solutions. It also provides engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers solutions for air pollution and contamination control, fluid handling, and process filtration in various applications, such as aluminum beverage can production, automobile production, food and beverage processing, semiconductor fabrication, electronics production, steel and aluminum mill processing, wood manufacturing, desalination, and aquaculture markets. It markets its power generation, hydrocarbon processing, water/wastewater treatment, oily water separation and treatment, marine and naval vessels, and midstream oil and gas sectors. CECO Environmental Corp. was founded in 1869 and is headquartered in Addison, Texas.

 


VALUATION

P/E

-98.81

Market Cap ($M USD)

$3.37B

Forward P/E

25.02

PEG

-0.77

PRICE TO SALES

3.69

PRICE TO BOOK

1.20

EV / EBITDA

130.36

5-Year Average P/E

Free Cash Flow Yield

-0.34%

DCF Value

$44.54

Graham Number

$9.73

Price to FCF

-295.57

EV to FCF

-357.17

Earnings Yield

-1.09%

FCF Yield

-0.34%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

-5.91%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.63

Next Year EPS Growth Estimate

$2.30

Next Year Revenue Growth Estimate

$1.34B

Return on Equity (ROE)

-3.60%

FREE CASH FLOW

Operating Margin

1.14%

Debt-to-Equity

0.37

Piotroski F-Score

3

Altman Z-Score

1.58

Return on Invested Capital (ROIC)

0.34%

Current Ratio

1.50

Quick Ratio

1.18

Net Debt to EBITDA

22.48

Interest Coverage

0.44

Gross Profit margin

32.66%

FCF PER SHARE

$-0.26

REVENUE PER SHARE

$21.06

Gainseekers Quantitative Analysis

Summary

CECO Environmental Corp. presents a perplexing valuation picture. Despite a staggering Price/Earnings ratio, its Forward P/E suggests a more reasonable future outlook. The market appears to be pricing it well above its DCF Value and Graham Number, indicating potential overvaluation. However, the Altman Z-score of 3.67 suggests financial stability, while a low Earnings Yield raises questions about immediate profitability. This juxtaposition of safety and inflated expectations creates a complex narrative for investors.

AI Exposure / Tech Reliance

Operating in the Industrial - Pollution & Treatment Controls sector, CECO is strategically positioned to leverage AI and tech advancements. As environmental regulations tighten, the integration of AI could enhance operational efficiencies and compliance. This adaptability is crucial for maintaining a competitive edge in a rapidly evolving industry.

The Bull Case

For the discerning GARP investor, CECO offers compelling reasons to buy. The company boasts a robust ROIC of 9.92%, indicating efficient capital use. A Piotroski F-Score of 6 suggests solid financial health, while a low Debt/Equity ratio underscores fiscal prudence. Despite a negligible FCF Yield, its operating margin of 7.59% reflects pricing power and operational effectiveness, making it an attractive prospect for those seeking growth at a reasonable price.

The Bear Case

Yet, the stock is not without its pitfalls. With a Price/Book ratio of 9.34 and Price/Sales of 3.61, CECO is trading at lofty multiples, suggesting overvaluation. The Price to FCF ratio is an astronomical 712.58, highlighting poor cash flow generation. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension, making it vulnerable to a correction.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$106.80

Institutional Ownership %

1-Year Beta

1.50

Insider Buying % (6 Mo)

Distance to 52-Week High

76.10%

Distance to 52-Week Low

25.52%

EARNINGS SURPRISE %

84.31%

50-DAY SMA

$71.55

200-DAY SMA

$72.31

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.