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5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
CECO Environmental's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 4.84%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for CECO Environmental's 5-Year ROIIC % or its related term are showing as below:
CECO's 5-Year ROIIC % is ranked better than 51.08% of 2784
companies
in the Industrial Products industry
Industry Median: 4.505
vs CECO: 4.84
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
CECO Environmental 5-Year ROIIC % Related Terms
CECO Environmental 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for CECO Environmental's 5-Year ROIIC % 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.
For the Pollution & Treatment Controls subindustry, CECO Environmental's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, CECO Environmental's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where CECO Environmental's 5-Year ROIIC % falls into.
CECO Environmental's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 33.148033 (Dec. 2025) - 13.38807 (Dec. 2020) )
/
( 716.954 (Dec. 2025) - 309.109 (Dec. 2020) )
=
19.759963
/
407.845
=
4.84%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
CECO Environmental (CECO) has a 5-Year ROIIC % of 4.84 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on CECO Environmental and its competitors. According to the industry distribution chart, CECO Environmental ranks #1362 out of 2784 companies in the Industrial Products industry, placing it in the top 48.9%.
Is CECO Environmental's 5-Year ROIIC % too high?
CECO Environmental's current 5-Year ROIIC % is 4.84. The Industrial Products industry median 5-Year ROIIC % is 4.51. CECO Environmental's value of 4.84 is 7.4% above this industry median. Based on the distribution chart, CECO Environmental ranks #1362 out of 2784 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 5-Year ROIIC % compare to ZWS and PCT?
According to the Industrial Products industry distribution chart, CECO Environmental ranks #1362 out of 2784 companies for 5-Year ROIIC %. This puts CECO Environmental in the upper half of its industry. The industry median 5-Year ROIIC % is 4.51. CECO Environmental's value of 4.84 is 7.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.51, based on 2,784 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CECO Environmental's current 5-Year ROIIC % of 4.84 is 7.4% above 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on CECO Environmental and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CECO Environmental's current 5-Year ROIIC % is 4.84. 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 $44.82, compared to a current price of $83.24 — trading 85.7% above its estimated fair value. The current 5-Year ROIIC % is 4.84 and 7.4% above the Industrial Products industry median of 4.51. CECO Environmental's overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For CECO Environmental (CECO), the current 5-Year ROIIC % is 4.84 as of Dec. 2025. 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 $83.24 is trading 85.7% above its estimated GF Value™ of $44.82.
GuruFocus considers CECO Environmental to be Significantly Overvalued.
Key valuation signals for CECO:
5-Year ROIIC %: 4.84
GF Value™: $44.82 vs. price of $83.24 (85.7% above fair value)
Industry Position: 7.4% above the Industrial Products median (#1362 of 2784)
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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