Last Updated: 19 Sep 2024
Executive Summary
CECO Environmental Corp. (CECO) is a publicly traded company specializing in industrial and commercial fans, blowers, and air purifying equipment. The company is headquartered in Dallas, Texas, and has a market capitalization of approximately $982 million. CECO's financial performance has been solid in recent quarters, with revenue and earnings growth. The company's stock price has also performed well, outperforming the broader market.
Company Overview
CECO Environmental Corp. was founded in 1918 and is one of the leading manufacturers of industrial and commercial fans, blowers, and air purifying equipment. The company's products are used in a wide range of applications, including ventilation, air conditioning, and pollution control. CECO has a global presence, with operations in North America, Europe, and Asia.
Fundamental Analysis
CECO's financial performance has been solid in recent quarters. In the latest quarter, the company reported revenue of $566.9 million, an increase of 6.5% year-over-year. Net income was $57.2 million, an increase of 11.6% year-over-year. CECO's gross profit margin and operating margin have also improved in recent quarters.
The company's balance sheet is also strong. CECO has a low level of debt and a healthy amount of cash on hand. The company's cash flow from operations has also been positive in recent quarters.
CECO's valuation metrics are currently attractive. The company's trailing price-to-earnings ratio is 75.95, which is below the industry average. CECO's forward price-to-earnings ratio is 20.96, which is also below the industry average.
Technical Analysis
CECO's stock price has performed well in recent months. The stock has been trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is also above 50, indicating that the stock is in a bullish trend.
Short Term Outlook
CECO's stock price is expected to continue to perform well in the short term. The company's financial performance is solid, and the stock's technical indicators are bullish. CECO's stock price could reach $30 in the next few months.
Long Term Outlook
CECO's long-term outlook is also positive. The company is a leader in its industry, and it has a strong financial foundation. CECO is well-positioned to benefit from the growing demand for its products. CECO's stock price could reach $40 in the next few years.
Analyst Recommendations
Analysts are bullish on CECO's stock. Six analysts have a buy rating on the stock, and none have a sell rating. The average analyst target price is $33.67.
