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Should Quality-Oriented Investors Explore CECO ENVIRONMENTAL CORP (NASDAQ:CECO)?

By Mill Chart

Last update: May 30, 2024

In this article we will dive into CECO ENVIRONMENTAL CORP (NASDAQ:CECO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CECO ENVIRONMENTAL CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.


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Highlighting Notable Quality Metrics of NASDAQ:CECO.

  • The 5-year revenue growth of CECO ENVIRONMENTAL CORP has been remarkable, with 10.07% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • The ROIC excluding cash and goodwill of CECO ENVIRONMENTAL CORP stands at 38.82%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 2.8, CECO ENVIRONMENTAL CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 245.0%, CECO ENVIRONMENTAL CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CECO ENVIRONMENTAL CORP has consistently achieved strong EBIT growth over the past 5 years, with a 23.1% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • CECO ENVIRONMENTAL CORP has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, CECO scores 5 out of 10 in our fundamental rating. CECO was compared to 84 industry peers in the Commercial Services & Supplies industry. Both the profitability and the financial health of CECO get a neutral evaluation. Nothing too spectacular is happening here. CECO is not overvalued while it is showing excellent growth. This is an interesting combination.

Check the latest full fundamental report of CECO for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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CECO ENVIRONMENTAL CORP

NASDAQ:CECO (7/12/2024, 7:23:29 PM)

After market: 28 -0.9 (-3.11%)

28.9

+0.27 (+0.94%)

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