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Why the quality investor may take a look at CECO ENVIRONMENTAL CORP (NASDAQ:CECO).

By Mill Chart

Last update: May 8, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CECO ENVIRONMENTAL CORP (NASDAQ:CECO) is suited for quality investing. Investors should of course do their own research, but we spotted CECO ENVIRONMENTAL CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into CECO ENVIRONMENTAL CORP's Quality Metrics.

  • CECO ENVIRONMENTAL CORP has achieved substantial revenue growth over the past 5 years, with a 10.07% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 38.82%, CECO ENVIRONMENTAL CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 2.8, CECO ENVIRONMENTAL CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • CECO ENVIRONMENTAL CORP exhibits impressive Profit Quality (5-year) with a 245.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of CECO ENVIRONMENTAL CORP has been remarkable, with 23.1% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • CECO ENVIRONMENTAL CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NASDAQ:CECO

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and 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 85 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

For an up to date full fundamental analysis you can check the fundamental report of CECO

More quality stocks can be found 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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