Why We're Not Concerned About CECO Environmental Corp.'s (NASDAQ:CECO) Share Price

Simply Wall St.11-27

When you see that almost half of the companies in the Commercial Services industry in the United States have price-to-sales ratios (or "P/S") below 1.5x, CECO Environmental Corp. (NASDAQ:CECO) looks ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2486769618?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/247170-main-header/1597298371951","is_english":true,"pubTime":"2024-11-27 19:21","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2486769618","market":"nz","top_or_hot":-1,"title":"Why We're Not Concerned About CECO Environmental Corp.'s (NASDAQ:CECO) Share Price","media":"Simply Wall St.","content":"<div>\n<p>When you see that almost half of the companies in the Commercial Services industry in the United States have price-to-sales ratios (or \"P/S\") below 1.5x, CECO Environmental Corp. (NASDAQ:CECO) looks ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-ceco/ceco-environmental/news/why-were-not-concerned-about-ceco-environmental-corps-nasdaq\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why We're Not Concerned About CECO Environmental Corp.'s (NASDAQ:CECO) Share Price</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy We're Not Concerned About CECO Environmental Corp.'s (NASDAQ:CECO) Share Price\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-27 19:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/commercial-services/nasdaq-ceco/ceco-environmental/news/why-were-not-concerned-about-ceco-environmental-corps-nasdaq><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When you see that almost half of the companies in the Commercial Services industry in the United States have price-to-sales ratios (or \"P/S\") below 1.5x, CECO Environmental Corp. (NASDAQ:CECO) looks ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/commercial-services/nasdaq-ceco/ceco-environmental/news/why-were-not-concerned-about-ceco-environmental-corps-nasdaq\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2210150020.SGD","symbol_name":"Natixis Thematics Subscription Economy R/A SGD","start_time":0,"source_url":"https://simplywall.st/stocks/us/commercial-services/nasdaq-ceco/ceco-environmental/news/why-were-not-concerned-about-ceco-environmental-corps-nasdaq","article_id":"2486769618","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/247170-main-header/1597298371951"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2486769618","pubTimestamp":1732706519,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When you see that almost half of the companies in the Commercial Services industry in the United States have...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","TQQQ":"纳指三倍做多ETF","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H",".IXIC":"NASDAQ Composite","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4588":"碎股","CECO":"Ceco环保","BK4120":"环境与设施服务","QLD":"纳指两倍做多ETF","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","PSQ":"纳指反向ETF","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","BK4112":"金融交易所和数据","NDAQ":"纳斯达克OMX交易所","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","SQQQ":"纳指三倍做空ETF","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","QID":"纳指两倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD"},"translate_title":"为什么我们不担心CECO Environmental Corp.（纳斯达克：CECO）的股价","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CECO":1,"NDAQ":1,".IXIC":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"When you see that almost half of the companies in the Commercial Services industry in the United States have price-to-sales ratios (or \"P/S\") below 1.5x, CECO Environmental Corp. (NASDAQ:CECO) looks to be giving off some sell signals with its 2.1x P/S ratio.   Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.     View our latest analysis for CECO Environmental NasdaqGS:CECO Price to Sales Ratio vs Industry November 27th 2024 What Does CECO Environmental's Recent Performance Look Like?  CECO Environmental's revenue growth of late has been pretty similar to most other companies.   One possibility is that the P/S ratio is high because investors think this modest revenue performance will accelerate.  However, if this isn't the case, investors might get caught out paying too much for the stock.      Want the full picture on analyst estimates for the company? Then our free report on CECO Environmental will help you uncover what's on the horizon.   Is There Enough Revenue Growth Forecasted For CECO Environmental?   There's an inherent assumption that a company should outperform the industry for P/S ratios like CECO Environmental's to be considered reasonable.   Retrospectively, the last year delivered a decent 9.0% gain to the company's revenues.   The latest three year period has also seen an excellent 76% overall rise in revenue, aided somewhat by its short-term performance.  Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.     Turning to the outlook, the next three years should generate growth of 14%  each year as estimated by the six analysts watching the company.  With the industry only predicted to deliver 8.4% each year, the company is positioned for a stronger revenue result.  With this information, we can see why CECO Environmental is trading at such a high P/S compared to the industry.  Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.    The Final Word  Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.  Our look into CECO Environmental shows that its P/S ratio remains high on the merit of its strong future revenues.  At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio.  Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant.      Having said that, be aware  CECO Environmental is showing 1 warning sign in our investment analysis, you should know about.   Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2486769618"}