CECO Environmental: Trades At A Premium Multiple, But I Think It Is Justified

Impact · against what's priced in

CECO shows significant upside potential due to a massive 72% year-over-year increase in backlog and a book-to-bill ratio of 2.2x, which indicates demand is far exceeding current delivery capacity. The acquisition of Thermon further supports a higher valuation by improving margin mix and cross-selling opportunities.

CECO+0.80

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In context

A $1.03 billion backlog and a 2.2x book-to-bill ratio provide high revenue visibility and suggest that demand is significantly outstripping current supply capacity.

Read from the article alone

• CECO
• acquisitions
• backlog
• industrial infrastructure
• margin expansion
• order visibility
• power sector

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