Reasonable Growth, Debt Levels, and a High ROIC Make CECO ENVIRONMENTAL CORP (NASDAQ:CECO) Appealing to Quality Investors.

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.

Exploring Why NASDAQ:CECO Holds Appeal for Quality Investors.

• Over the past 5 years, CECO ENVIRONMENTAL CORP has experienced impressive revenue growth, with 10.07% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• 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.
• CECO ENVIRONMENTAL CORP demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.8, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a robust Profit Quality (5-year) ratio of 245.0%, CECO ENVIRONMENTAL CORP highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• 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 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.

How does the complete fundamental picture look for NASDAQ:CECO?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

CECO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Commercial Services & Supplies industry. CECO has only an average score on both its financial health and profitability. CECO is valued quite expensively, but it does show have an excellent growth rating.

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.