CECO EnvironmentalCECO -1.33%77 Operating Margin % is 5.90% as of Mar. 2026, which is 8% below its 10-year median of 6.38. GuruFocus rates CECO with a GF Score™ of 77/100 and a GF Value™ of $42.79 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, CECO Environmental ranks better than 53.85% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
CECO Environmental Operating Margin % Related Terms
CECO Environmental Operating Margin % Historical Data
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The historical data trend for CECO Environmental's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CECO vs PCT, ERII, ARQ: Operating Margin % Comparison
For the Pollution & Treatment Controls subindustry, CECO Environmental's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CECO Environmental Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, CECO Environmental's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CECO Environmental's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
CECO Environmental's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CECO Environmental (CECO) has a Operating Margin % of 5.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CECO Environmental and its competitors. This is near median its historical median of 6.38. Over the past decade, CECO Environmental's Operating Margin % has ranged from 3.50 to 7.89. According to the industry distribution chart, CECO Environmental ranks #1402 out of 3038 companies in the Industrial Products industry, placing it in the top 46.1%.
Is CECO Environmental's Operating Margin % too high?
CECO Environmental's current Operating Margin % of 5.90% is near median its 10-year median of 6.38. Over the past 10 years, this metric has ranged from a low of 3.50 to a high of 7.89. The Industrial Products industry median Operating Margin % is 6.53. CECO Environmental's value of 5.90% is 9.6% below this industry median. Based on the distribution chart, CECO Environmental ranks #1402 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, CECO Environmental has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CECO Environmental's Operating Margin % compare to PCT and ERII?
According to the Industrial Products industry distribution chart, CECO Environmental ranks #1402 out of 3038 companies for Operating Margin %. This puts CECO Environmental in the upper half of its industry. The industry median Operating Margin % is 6.53. CECO Environmental's value of 5.90% is 9.6% below this benchmark. Historically, CECO Environmental's own Operating Margin % has ranged from 3.50 to 7.89 over the past decade. While the company's 10-year median is 6.38 vs. the industry median of 6.53, CECO Environmental has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CECO Environmental's current Operating Margin % of 5.90% is 9.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on CECO Environmental and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CECO Environmental's current Operating Margin % is 5.90%, which is near median its own 10-year median of 6.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CECO Environmental stock overvalued right now?
Based on GuruFocus' analysis, CECO Environmental (CECO) is currently considered Significantly Overvalued. The stock's GF Value™ is $42.79, compared to a current price of $95.40 — trading 122.9% above its estimated fair value. The current Operating Margin % is 5.90%, which is near median its 10-year median of 6.38 and 9.6% below the Industrial Products industry median of 6.53. CECO Environmental's overall GF Score™ is 77/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For CECO Environmental (CECO), the current Operating Margin % is 5.90% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CECO Environmental (CECO) Overvalued in 2026?
Based on GuruFocus' analysis, CECO Environmental stock appears to be overvalued.
The current stock price of $95.40 is trading 122.9% above its estimated GF Value™ of $42.79.
GuruFocus considers CECO Environmental to be Significantly Overvalued.
Key valuation signals for CECO:
Operating Margin %: 5.90% (near median its 10-year median of 6.38)
GF Value™: $42.79 vs. price of $95.40 (122.9% above fair value)
Industry Position: 9.6% below the Industrial Products median (#1402 of 3038)
No single metric tells the full story. See the CECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CECO Environmental Corp is an industrial company, serving industrial air, industrial water, and energy transition markets. It offers various engineered and configured products and solutions, including dampers and diverters, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, water treatment packages, industrial silencers, etc. These products are offered through brands like Western Airducts, WK, Wakefield Acoustics, Transcend, Verantis, and others. The company's reportable segments are: Engineered Systems, which derive maximum revenue, and Industrial Process Solutions. Geographically, it derives key revenue from the U.S., followed by the Netherlands, the UK, China, and other markets.
77GF Score
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