CECO Environmental Corp. (CECO) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
CECO Environmental demonstrates exceptional backlog growth with a record $135M large order, 17% monthly price advance, and solid pipeline amid favorable regulatory sector tailwinds, justifying its status as a strong short-term growth opportunity.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Stable gross margin ⢠Thin net margin ⢠High receivables CECO delivers stable gross and EBITDA margins with improving free cash flow but faces razorâthin net profits, oversized receivables and intangibles, low interest coverage and only moderate liquidity, making current multiples look stretched against weak earnings.
Price Behavior
Key Price Behavior Insights: ⢠Steady climb ⢠Support breakout ⢠Pullback risk Support Level: $62.00 Resistance Level: $68â$70 Over the last month CECO climbed steadily from about $60.66 to $67.04, breaking above ~$62 to form support and showing bullish momentum but with elevated short-term pullback risk as it nears $68â$70.
Sentiment & News
Key News Insights: ⢠Investor engagement ⢠Institutional sellâdown ⢠Market positioning CECO Environmental is engaging investors via the Needham Growth Conference while a major holder, Continuum Advisory LLC, halved its stake, signaling simultaneous corporate outreach and institutional recalibration.
AI Summary
CECO has likely moved from a cyclical smallâcap to a growthâatâtheârightâtime story driven by record backlog, >$135M gas order and a >$5.8B pipeline that could materially grow revenue and adjusted EBITDA if management can convert large, timingâsensitive awards at targeted margins. The single actionable risk: closely monitor backlogâtoârevenue conversion, receivables as a % of quarterly revenue, and FCF/adj. EBITDA conversionâif receivables or margins deteriorate (or interest coverage weakens), the valuation premium will quickly reverse.
Description
CECO Environmental Corp. supplies industrial air quality control and fluid-handling solutions globally through two reporting segments, Engineered Systems and Industrial Process Solutions. The company engineers, fabricates and installs systems to capture, treat and eliminate air- and water-borne emissions and to manage fluid handling, gas separation and filtration for industrial sites. Founded in 1966, CECO is headquartered in Dallas, Texas, and serves customers across energy, manufacturing, semiconductor, metals, and other industrial end markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 15 | Dec 22 | CECO | CECO Environmental Corp. | CECO Environmental demonstrates exceptional backlog growth with a record $135M large order, 17% monthly price advance, and solid pipeline amid favorable regulatory sector tailwinds, justifying its status as a strong short-term growth opportunity. | Closed | -1.5% |