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

By Mill Chart

Last update: Sep 3, 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.

Key Considerations for Quality Investors.

  • CECO ENVIRONMENTAL CORP has shown strong performance in revenue growth over the past 5 years, with a 10.07% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of CECO ENVIRONMENTAL CORP stands at 35.77%, 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.
  • The Debt/Free Cash Flow Ratio of CECO ENVIRONMENTAL CORP stands at 3.16, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • 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.
  • CECO ENVIRONMENTAL CORP has experienced impressive EBIT growth over the past 5 years, with 23.1% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, CECO ENVIRONMENTAL CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

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

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily 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 83 industry peers in the Commercial Services & Supplies industry. CECO has an average financial health and profitability rating. CECO shows excellent growth, but is valued quite expensive already.

Our latest full fundamental report of CECO contains the most current fundamental analsysis.

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

Keep in mind

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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