CECO Environmental Corp (CECO) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

CECO Environmental's EV/EBITDA of 82.2 is above its 5-year median of 17.9.

P/B below the industry

CECO Environmental's price-to-book of 1.46 is below the General Industrial Machinery and Equipment median of 2.84.

Trading above fair value

The share price of $51.83 is above our fair value estimate of $3.77.

Margin of safety under 20%

The price is 1274% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 22.4% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 39.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -166% over the last twelve months, against a 5-year average of 43.6% a year.

Growing faster than the industry

Revenue grew 54.5% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Guidance raised

CECO Environmental raised its full year consolidated 2026 Revenue outlook on Aug 10, 2026.

Gross margin slipping

Gross margin was 32.1% over the last twelve months, against 34.9% a year earlier.

Return on equity under 15%

Return on equity was -2.9% over the last twelve months and averaged 7.6% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -0.2%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

CECO Environmental's return on equity of -2.9% is below the General Industrial Machinery and Equipment median of 9.9%.

Earnings grew over 5 years

Net income grew 43.6% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was -3.1% over the last twelve months, against a 5-year average of 3.1%.

Net margin below the industry

CECO Environmental's net margin of -3.1% is below the General Industrial Machinery and Equipment median of 8.0%.

Low debt

Debt is 28.8% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 35.8% five years ago to 28.8%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 21.9% of total debt.

Interest not well covered

Operating income covers interest expense -0.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.29 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.50; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

CECO Environmental has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.