Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$137.95
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$85.66
23.1% 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 $65.89, which is considered oversold relative to its 30-day fair value range of $73.29 to $91.29. From a valuation perspective, the stock is trading at a discount (Forward PE: 23.2) compared to its historical average (35.6). Remarkably, the market is currently pricing in an annual earnings decline of 13.2% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, CECO is in a strong uptrend. Immediate support is located at $59.45, while resistance sits at $84.26.
Market Sentiment: CECO has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $111.83 (+69.7%). 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
OVERSOLD
Historical Trading Range
$73.29 -
$91.29
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
57.1%
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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.