CECO Environmental Corp. Common Stock (CECO)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the 2026-10-13 close, CECO traded at $67.31, a $3.9B market value. It sells air-quality, water-treatment, and energy-transition equipment. I look for durable earnings and a margin of safety. The revenue story is real: in fiscal FY2025, the year ended 2025-12-31, revenue was $774.4M, up from $557.9M in fiscal FY2024, the year ended 2024-12-31, and in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $285.0M versus $185.4M in fiscal Q2 2025, the quarter ended 2025-06-30. But the profit story has cracked. Fiscal Q2 2026 produced a net loss of $34.8M, or diluted EPS of -$0.80, against net income of $9.5M, or $0.26, in fiscal Q2 2025. Fiscal FY2025 still showed net income of $50.1M and diluted EPS of $1.37, but the latest quarter was a loss and FairStock's P/E at the close was -88.57. Trailing free cash flow was -$21.6M. FairStock calculates ROE -2.36%, ROCE 1.53%, Piotroski 3/9, and Altman Z-Score 1.63. Those are not fortress marks. Debt/equity of 0.37 is manageable, and P/B of 1.89 at the close is not extreme, but EV/EBITDA of 223.50 and a FairStock Score of 30/100 suggest the price discounts a sharp recovery. FairStock labels CECO a FAST GROWER because five-year profit growth was 43.6% a year and revenue grew 19.6%, yet the latest quarter contradicts that label. Without consistent profits and cash generation, I see no margin of safety.

In plain English: CECO Environmental makes equipment and services that help factories and other industrial sites clean their air and water. The business has grown sales, but it lost money in the quarter ended June 30, 2026 and used more cash than it generated over the past year. At the recent share price, the stock looks expensive compared with those weak results.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer