📊 CECO Key Takeaways
Investment Thesis
CECO demonstrates strong revenue growth (38.8% YoY) and solid profitability metrics with 13.7% operating margins, but cash flow generation is critically weak with negative free cash flow of -5.5M despite operating cash flow of only 5.9M. The company's leverage is moderate (0.67x debt/equity) with adequate interest coverage, but the disconnect between accounting profits and actual cash generation raises concerns about earnings quality and sustainability.
CECO Strengths
- Strong top-line growth of 38.8% YoY demonstrates market demand and successful expansion
- Healthy operating margin of 13.7% and gross margin of 34.8% indicate pricing power and operational efficiency
- Solid return metrics with ROE of 15.8% and ROA of 5.6% show efficient capital deployment
- Conservative leverage ratio of 0.67x debt/equity provides financial flexibility
CECO Risks
- Severely negative free cash flow of -5.5M is alarming despite 5.9M operating cash flow, indicating cash burn and potential working capital management issues
- Diluted EPS grew 280.6% while net income actually declined 5.8%, suggesting aggressive share buybacks masking underlying earnings pressure
- Large capital expenditure (11.3M) relative to weak operating cash flow (5.9M) creates sustainability concerns if growth capital intensity persists
- Minimal cash balance of 33.1M relative to 212.4M long-term debt limits financial cushion for operational challenges
Key Metrics to Watch
- Free cash flow trend - critical to monitor if negative FCF is temporary due to capex or structural working capital problem
- Operating cash flow sustainability - 5.9M is dangerously low relative to 50.1M net income; need to track cash conversion quality
- Capital expenditure as % of revenue - evaluate whether ongoing 11.3M+ capex is necessary for growth sustainability
- Working capital management - investigate accounts receivable and inventory trends driving the OCF/net income divergence
CECO Financial Metrics
💡 AI Analyst Insight
CECO ENVIRONMENTAL CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CECO Profitability Ratios
CECO vs Industrial Sector
How CECO ENVIRONMENTAL CORP compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CECO Balance Sheet & Liquidity
CECO 5-Year Financial Trend
5-Year Trend Summary: CECO ENVIRONMENTAL CORP's revenue has grown significantly by 127% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.37 reflects profitable operations.
CECO Growth Metrics (YoY)
CECO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $135.5M | $1.5M | $0.04 |
| Q2 2025 | $137.5M | $4.5M | $0.12 |
| Q1 2025 | $126.3M | $1.5M | $0.04 |
| Q3 2024 | $135.5M | $2.1M | $0.06 |
| Q2 2024 | $129.2M | $3.7M | $0.11 |
| Q1 2024 | $112.6M | $1.5M | $0.04 |
| Q3 2023 | $108.4M | $1.9M | $0.06 |
| Q2 2023 | $105.4M | $3.7M | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CECO Capital Allocation
CECO SEC Filings
Access official SEC EDGAR filings for CECO ENVIRONMENTAL CORP (CIK: 0000003197)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CECO
What is the AI rating for CECO?
CECO ENVIRONMENTAL CORP (CECO) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CECO's key strengths?
Strong top-line growth of 38.8% YoY demonstrates market demand and successful expansion. Healthy operating margin of 13.7% and gross margin of 34.8% indicate pricing power and operational efficiency.
What are the risks of investing in CECO?
Severely negative free cash flow of -5.5M is alarming despite 5.9M operating cash flow, indicating cash burn and potential working capital management issues. Diluted EPS grew 280.6% while net income actually declined 5.8%, suggesting aggressive share buybacks masking underlying earnings pressure.
What is CECO's revenue and growth?
CECO ENVIRONMENTAL CORP reported revenue of $774.4M.
Does CECO pay dividends?
CECO ENVIRONMENTAL CORP pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find CECO SEC filings?
Official SEC filings for CECO ENVIRONMENTAL CORP (CIK: 0000003197) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CECO's EPS?
CECO ENVIRONMENTAL CORP has a diluted EPS of $1.37.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.