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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#747
Positioning
Market Dominance
Manufacturing
Machinery
$1.8B
Todd R. Gleason
CECO Environmental Corp. provides industrial air quality and fluid handling systems. The company engineers, designs, builds, and installs systems that capture, clean, and destroy air- and water-borne emissions from industrial facilities. It offers dampers and diverters, selective catalytic reduction and selective non-catalytic reduction systems.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = CECO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CECO CECO ENVIRONMENTAL CORP | 60 | 54 | 50 | 87 | 55.2x | 31.4x | 16.2% | 5.7% | 27.6% | 7.0% | 3.3% | 43.7% | 0.0% | 70.0x | $1.8B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
CECO ENVIRONMENTAL CORP (CECO) receives a "Hold" rating with a composite score of 59.5/100. It ranks #747 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for CECO.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 54 | 51 | +3NEUTRAL |
| MOMENTUM | 87 | 93 | -6DRAG |
| VALUATION | 50 | 40 | +10ALPHA |
| INVESTMENT | 23 | 7 | +16ALPHA |
| STABILITY | 65 | 64 | +1NEUTRAL |
| SHORT INT | 39 | 33 | +6ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 4.4% vs WACC 9.2% (spread -4.7%)
GM 28% vs sector 44%, OM 7% vs sector 3%
Capital turnover 1.05x
Rev growth 44%, 10yr history
Interest coverage 1.9x, Net debt/EBITDA 20.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate CECO ENVIRONMENTAL CORP (CECO) as a Hold with a composite score of 59.5/100 at a current price of $59.82. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
CECO ENVIRONMENTAL CORP holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 59.5/100 places it at rank #747 in our full universe.
The near-term outlook is constructive, with revenue growing at 44% and momentum in the 87th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
Medium
Standard
Fair Value
Returns on equity of 16.2% exceed cost of capital.
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 55.2x leaves little room for execution misses.
Vulnerability to macroeconomic shocks and interest rate volatility.
CECO ENVIRONMENTAL CORP represents a hold based on multi-factor quantitative performance.
Our model assigns CECO ENVIRONMENTAL CORP a Hold rating, with a composite score of 59.5/100 and 3 out of 5 stars. Ranked #747 of 7,333 stocks, CECO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 54/100, CECO shows adequate but unremarkable business quality. The company reports a return on equity of 16.2% (sector avg: -1.9%), gross margins of 27.6% (sector avg: 44.1%), net margins of 3.3% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
CECO's value score of 50/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 55.17x, an EV/EBITDA of 31.38x, a P/B ratio of 8.95x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
CECO ENVIRONMENTAL CORP's investment score of 23/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 43.7% vs. a sector average of 6.7% and a return on assets of 5.7% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
CECO shows strong momentum characteristics with a score of 87/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 43.7% year-over-year, while a beta of 1.01 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
CECO shows good financial stability with a score of 65/100. Key stability metrics include a beta of 1.01 and a debt-to-equity ratio of 70.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
CECO ENVIRONMENTAL CORP's short interest score of 39/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 70.00x), small-cap liquidity risk. At $1.8B (small-cap), CECO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
CECO ENVIRONMENTAL CORP is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #747 of 7,333 overall (90th percentile). Key comparisons include ROE of 16.2% exceeding the -1.9% sector median and operating margins of 7.0% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While CECO currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Momentum (87) vs Investment (23) — closing this gap could shift the rating.
EV/EBITDA 174% ABOVE SECTOR MEDIAN
ROE 954% BELOW SECTOR MEDIAN
Gross Margin 37% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
CECO (CECO) Q4 2025 earnings call: record backlog, $1B+ orders, raised 2026 guidance, and $2.2B Thermon merger synergies—read highlights now.
Stock Market Today: The Dow Jones index climbs Tuesday after Monday's sell-off. Online marketplace platform operator tumbles.
CECO Environmental Corp (CECO) reports impressive revenue and EBITDA growth, sets ambitious 2026 guidance, and announces a transformative acquisition with Thermon.
Monteverde & Associates PC, a securities class action firm, has announced an investigation into Thermon Group Holdings, Inc. (NYSE: THR) regarding its proposed sale to CECO Environmental Corp. The investigation seeks to determine whether the merger terms are fair to Thermon shareholders, who may elect to receive various combinations of cash and CECO stock.
Thermon Group Holdings (NYSE:THR) shares surged 18.55% in premarket trading following announcement of a $2.2 billion strategic combination with CECO Environmental Corp (NASDAQ:CECO). The deal offers Thermon shareholders multiple consideration options, implying a value of approximately $63.13 per share, representing a 26.8% premium to the previous closing price. The combined company is expected to achieve $40 million in annual cost synergies within 36 months and will be positioned to capitalize on energy transition and decarbonization trends. The transaction is expected to close mid-2026.