Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$150.23
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$93.28
23.3% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
Valuation Analysis: CECO is currently trading at $71.52, which is considered fair relative to its 30-day fair value range of $68.44 to $80.41. From a valuation perspective, the stock is trading at a discount (Forward PE: 23.2) compared to its historical average (34.6). Remarkably, the market is currently pricing in an annual earnings decline of 12.5% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CECO is in a uptrend. Immediate support is located at $66.00, while resistance sits at $84.77.
Market Sentiment: The stock scores a mixed 46/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. In the options market, Implied Volatility is low (25th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $109.14 (+52.6%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$68.44 -
$80.41
Company Quality Score
55/100
(HOLD)
Options IV Signal
25th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
77.7%
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About
CECO Environmental Corp serves the energy, industrial, and other niche markets. The company operates through the Engineered Systems segment that serves the power generation, refinery, water/wastewater, and midstream oil and gas markets, and Industrial Process Solutions segment, which serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. The majority of revenue is earned from the Engineered Systems Segment.