CECO (CECO Environmental) Financial Strength: 5 (As of Jun. 2026) — 17% Below Median

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CECO CECO Environmental Corp CECO
84 GF Score
Price $67.46
GF Value $47.94
Valuation Significantly Overvalued
! 6 Warning Signs
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What is CECO Environmental Financial Strength?

CECO Environmental CECO -4.57% 84 Financial Strength is 5 as of Jun. 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates CECO with a GF Score™ of 84/100 and a GF Value™ of $47.94 (Significantly Overvalued). The stock has 6 warning signs investors should review.

CECO Environmental has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

CECO Environmental's Interest Coverage for the quarter that ended in Jun. 2026 was 1.35. CECO Environmental's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.64. As of today, CECO Environmental's Altman Z-Score is 2.01.


CECO Environmental  (NAS:CECO) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

CECO Environmental has the Financial Strength Rank of 5.


CECO Environmental Financial Strength Related Terms


CECO vs PCT, ERII, ZWS: Financial Strength Comparison

For the Pollution & Treatment Controls subindustry, CECO Environmental's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, CECO Environmental's Financial Strength distribution charts can be found below:

* The bar in red indicates where CECO Environmental's Financial Strength falls into.


CECO
84GF Score
CECO Environmental Corp CECO
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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CECO Environmental Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

CECO Environmental's Interest Expense for the months ended in Jun. 2026 was $-9.1 Mil. Its Operating Income for the months ended in Jun. 2026 was $12.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $711.1 Mil.

CECO Environmental's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*12.283/-9.102
=1.35

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

CECO Environmental's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(16.641 + 711.065) / 1139.844
=0.64

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

CECO Environmental has a Z-score of 2.01, indicating it is in Grey Zones. This implies that CECO Environmental is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.01 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
CECO Environmental (CECO) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on CECO Environmental and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, CECO Environmental's Financial Strength has ranged from 4.00 to 7.00.
Is CECO Environmental's Financial Strength too high?
CECO Environmental's current Financial Strength of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. Overall, CECO Environmental has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CECO Environmental's Financial Strength compare to PCT and ERII?
CECO Environmental's Financial Strength of 5 can be compared against companies in the Industrial Products industry. Historically, CECO Environmental's own Financial Strength has ranged from 4.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on CECO Environmental and its competitors. CECO Environmental's current Financial Strength is 5, which is 17% below median its own 10-year median of 6.00. 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 $47.94, compared to a current price of $67.46 — trading 40.7% above its estimated fair value. The current Financial Strength is 5, which is 17% below median its 10-year median of 6.00. CECO Environmental's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For CECO Environmental (CECO), the current Financial Strength is 5 as of Jun. 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 $67.46 is trading 40.7% above its estimated GF Value™ of $47.94. GuruFocus considers CECO Environmental to be Significantly Overvalued.

Key valuation signals for CECO:

  • Financial Strength: 5 (17% below median its 10-year median of 6.00)
  • GF Value™: $47.94 vs. price of $67.46 (40.7% above fair value)
  • GF Score™: 84/100 with 6 warning signs

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 Business Description

Other Exchanges WCE:Germany
Address 5080 Spectrum Drive, Suite 800E, Addison, TX, USA, 75001
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.
84GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$67.46
Price
$47.94
GF Value