What are the investment strengths of CECO Environmental Corp (CECO)?

Exceptional growth (45.8% YoY) with above-median profitability (ROE 18.8%, ROIC 10.8%) - rare combination in industrial sector suggests competitive moat. Asset turnover 0.95x above industry median 0.72x indicates efficient capital deployment despite acquisition-heavy model.

What are the investment risks for CECO Environmental Corp (CECO)?

P/E of 55x is 2x industry median (27x) while FCF is negative - valuation assumes flawless execution on growth with no margin for error. Debt/equity 0.80x with 20M interest expense (41% of operating income) limits flexibility; negative tangible book creates covenant risk.

CECO Environmental Corp

CECO

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CECO Environmental Corp AI Insights

Informational only. Not investment advice.

As of 2026-02-13

Snapshot

Revenue surged 45.8% YoY (TTM 718M) vs industry median 2.5% - 18x faster growth rate signals strong demand for environmental solutions.[Total Revenue 1Y Growth]
Goodwill of 292M is 94% of equity (309M) with negative tangible book value (-94M) - acquisition-heavy strategy creates impairment risk.[Goodwill]
FCF negative (-17M TTM) despite 48M operating income - working capital and capex consuming cash during growth phase.[Free Cash Flow]

Watch Triggers

Free Cash Flow: Turns positive for 2 consecutive quarters — Validates that growth is self-funding; negative FCF at 55x P/E is unsustainable
Operating Margin: Expands above 10% TTM — Scale leverage thesis requires margin expansion as revenue grows
Goodwill: Impairment charge announced — At 94% of equity, any impairment materially impacts book value and covenants

Bull Case

Exceptional growth (45.8% YoY) with above-median profitability (ROE 18.8%, ROIC 10.8%) - rare combination in industrial sector suggests competitive moat.

Total Revenue 1Y GrowthROEROIC

Asset turnover 0.95x above industry median 0.72x indicates efficient capital deployment despite acquisition-heavy model.

Asset TurnoverInvested Capital

Bear Case

P/E of 55x is 2x industry median (27x) while FCF is negative - valuation assumes flawless execution on growth with no margin for error.

P/E RatioFree Cash Flow

Debt/equity 0.80x with 20M interest expense (41% of operating income) limits flexibility; negative tangible book creates covenant risk.

Debt to EquityInterest ExpenseTangible Book Value

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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Forward Thesis

Environmental regulation tailwinds should sustain 15-20% revenue growth through 2028

1-3ymed

5Y revenue CAGR of 20.6% accelerating to 45.8% in latest year
Operating margin 6.7% at industry median with scale leverage potential
ROIC 10.8% exceeds industry median 4.9% - acquisitions creating value

Revenue 718M TTM, 3Y CAGR 22.2%ROE 18.8% vs industry median 7.5%Net margin 7.2% vs median 4.2%

Valuation Context

Caveats

Public Strategies Rankings

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CECO Fundamentals

Manufacturing → Machinery Manufacturing

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$2.19B		—
Enterprise Value	$2.4B		—
P/E Ratio	43		—
Total Revenue - TTM	$774.38M	+38.8%	—
Earnings Per Share (diluted) - TTM	$1.37	-7.2%	—
Operating Margin - TTM	6.68%	-0.6%	—
Net Margin - TTM	6.46%	+4.1%	—
Free Cash Flow - TTM	$-5.48M		—
Return on Common Equity - TTM	17.7%	+12.3%	—
Beta 5Y (Monthly)	unknown		—

CECO Dividend History

25 dividends

2017

$0.2250

09/14/17$0.0750

06/14/17$0.0750

03/15/17$0.0750

2016

$0.2640

12/14/16$0.0660

09/14/16$0.0660

06/15/16$0.0660

03/16/16$0.0660

2015

$0.2640

12/14/15$0.0660

09/16/15$0.0660

06/10/15$0.0660

03/17/15$0.0660

2014

$0.2300

12/17/14$0.0600

09/12/14$0.0600

06/11/14$0.0600

03/17/14$0.0500

2013

$0.2000

12/13/13$0.0500

09/12/13$0.0500

06/12/13$0.0500

03/14/13$0.0500

2012

$0.1600

12/12/12$0.0450

09/12/12$0.0450

06/13/12$0.0350

03/16/12$0.0350

2011

$0.0500

12/13/11$0.0250

09/13/11$0.0250

CECO Stock Splits

No stock splits

CECO SEC Filings

Filing Date	Report Date	Report Type	Filing Link
03/02/26	12/31/25	10-K	0001193125-26-085815
10/28/25	09/30/25	10-Q	0001193125-25-252944
07/29/25	06/30/25	10-Q	0000950170-25-099435
04/29/25	03/31/25	10-Q	0000950170-25-060136
02/25/25	12/31/24	10-K	0000950170-25-026562
10/29/24	09/30/24	10-Q	0000950170-24-117928
07/30/24	06/30/24	10-Q	0000950170-24-087850
04/30/24	03/31/24	10-Q	0000950170-24-050199
03/05/24	12/31/23	10-K	0000950170-24-025511
11/07/23	09/30/23	10-Q	0000950170-23-059754
08/08/23	06/30/23	10-Q	0000950170-23-039346
05/09/23	03/31/23	10-Q	0000950170-23-019174
03/06/23	12/31/22	10-K	0000950170-23-006169
11/07/22	09/30/22	10-Q	0000950170-22-022319
08/08/22	06/30/22	10-Q	0000950170-22-015243
05/10/22	03/31/22	10-Q	0000950170-22-008724
03/14/22	12/31/21	10-K	0000950170-22-003502
11/08/21	09/30/21	10-Q	0000950170-21-003303
08/03/21	06/30/21	10-Q	0001564590-21-039947
05/06/21	03/31/21	10-Q	0001564590-21-024518
03/03/21	12/31/20	10-K	0001564590-21-010416
11/04/20	09/30/20	10-Q	0001564590-20-050183
08/05/20	06/30/20	10-Q	0001564590-20-036424
05/06/20	03/31/20	10-Q	0001564590-20-021542
03/04/20	12/31/19	10-K	0001564590-20-008551
11/06/19	09/30/19	10-Q	0001564590-19-040655
08/06/19	06/30/19	10-Q	0001564590-19-028981
05/08/19	03/31/19	10-Q	0001564590-19-016822
03/07/19	12/31/18	10-K	0001564590-19-006619
11/07/18	09/30/18	10-Q	0001564590-18-027721
08/08/18	06/30/18	10-Q	0001564590-18-020187
05/10/18	03/31/18	10-Q	0001564590-18-012708
03/09/18	12/31/17	10-K	0001564590-18-005085
11/08/17	09/30/17	10-Q	0001564590-17-022478
08/09/17	06/30/17	10-Q	0001564590-17-016752
05/10/17	03/31/17	10-Q	0001564590-17-010062
03/14/17	12/31/16	10-K	0001564590-17-004264
11/08/16	09/30/16	10-Q	0001564590-16-028116
08/09/16	06/30/16	10-Q	0001564590-16-023501
05/10/16	03/31/16	10-Q	0001564590-16-018747
03/23/16	12/31/15	10-K	0001564590-16-015157
11/09/15	09/30/15	10-Q	0001193125-15-371925
08/07/15	06/30/15	10-Q	0001193125-15-282619
05/07/15	03/31/15	10-Q	0001193125-15-177283
03/18/15	12/31/14	10-K	0001193125-15-095828
11/06/14	09/30/14	10-Q	0001193125-14-401222
08/07/14	06/30/14	10-Q	0001193125-14-300176
05/08/14	03/31/14	10-Q	0001193125-14-189926
03/14/14	12/31/13	10-K	0001193125-14-098407
11/08/13	09/30/13	10-Q	0001193125-13-434882
08/09/13	06/30/13	10-Q	0001193125-13-328538
05/10/13	03/31/13	10-Q	0001193125-13-213336
03/15/13	12/31/12	10-K	0001193125-13-109153
11/08/12	09/30/12	10-Q	0001193125-12-459435
08/10/12	06/30/12	10-Q	0001193125-12-349129
05/11/12	03/31/12	10-Q	0001193125-12-227230
03/16/12	12/31/11	10-K	0001193125-12-119293
11/10/11	09/30/11	10-Q	0001193125-11-306196
08/12/11	06/30/11	10-Q	0001193125-11-221138
05/11/11	03/31/11	10-Q	0001193125-11-135502
03/15/11	12/31/10	10-K	0001193125-11-067373
11/15/10	09/30/10	10-Q	0001193125-10-260676
08/13/10	06/30/10	10-Q	0001193125-10-188914
05/14/10	03/31/10	10-Q	0001193125-10-120733
03/29/10	12/31/09	10-K	0001193125-10-069639
11/09/09	09/30/09	10-Q	0001193125-09-229396
08/10/09	06/30/09	10-Q	0001193125-09-170725
05/11/09	03/30/09	10-Q	0001193125-09-107407
03/16/09	12/31/08	10-K	0001193125-09-055504
11/10/08	09/30/08	10-Q	0001193125-08-232026
08/11/08	06/30/08	10-Q	0001193125-08-173267
05/12/08	03/30/08	Unknown	--
03/17/08	12/31/07	10-K	0001193125-08-058939
11/13/07	09/30/07	10-Q	0001193125-07-244462
08/10/07	06/30/07	10-Q	0001193125-07-178653
05/15/07	03/30/07	Unknown	--
04/02/07	12/31/06	10-K	0001193125-07-071909
11/09/06	09/30/06	10-Q	0001193125-06-230426
08/11/06	06/30/06	10-Q	0001193125-06-170261
05/11/06	03/30/06	Unknown	--
03/30/06	12/31/05	10-K	0001193125-06-068031
11/07/05	09/30/05	10-Q	0001193125-05-217995
08/12/05	06/30/05	10-Q	0001193125-05-167076
05/13/05	03/30/05	Unknown	--
04/15/05	12/31/04	NT 10-K	0001193125-05-066382
11/15/04	09/30/04	10-Q	0001193125-04-196654
08/16/04	06/30/04	10-Q	0001193125-04-141570
05/17/04	03/30/04	Unknown	--
03/29/04	12/31/03	10-K	0001193125-04-052176
11/14/03	09/30/03	10-Q	0001193125-03-081859
08/14/03	06/30/03	10-Q	0001193125-03-036822
05/09/03	03/30/03	Unknown	--
03/27/03	12/31/02	10-K	0000950131-03-001711
11/14/02	09/30/02	10-Q	0000950131-02-004445
08/09/02	06/30/02	10-Q	0000950131-02-003054
05/15/02	03/30/02	Unknown	--
03/28/02	12/31/01	8-K	0000950116-02-000046
09/30/01	09/30/01	10QSB	0000950116-01-501111
06/30/01	06/30/01	NT 10-Q	0000950116-01-500610
05/15/01	03/30/01	Unknown	--
12/31/00	12/31/00	NT 10-K	0000950116-01-000585
09/30/00	09/30/00	10QSB	0000950116-00-002721
06/30/00	06/30/00	10QSB	0000950116-00-001880
03/31/00	03/30/00	Unknown	--