CECO Environmental Story

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CECE -- USA Stock  

USD 7.14  0.10  1.42%

As many millenniums are excited about industrials space, we are going to shadow both, CECO Environmental and Energy Recovery as a potential shorter-term opportunity. We are going to discuss some of the competitive aspects of both CECO Environmental and Energy.
Published over a month ago
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What should I buy Energy (NASDAQ:ERII) or CECO Environmental (NASDAQ:CECE)?
By analyzing existing basic indicators between CECO Environmental and Energy, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Energy with a short position in CECO Environmental. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. CECO Environmental has an asset utilization ratio of 56.17 percent. This indicates that the company is making $0.56 for each dollar of assets. An increasing asset utilization means that CECO Environmental Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as CECO Environmental or Energy is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is CECO Environmental's Liquidity

CECO Environmental financial leverage refers to using borrowed capital as a funding source to finance CECO Environmental Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CECO Environmental financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between CECO Environmental's total debt and its cash.

Correlation Between CECO Environmental and Energy Recovery

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding CECO Environmental together with similar or unrelated positions with a negative correlation. For example, you can also add Energy Recovery to your portfolio. If Energy Recovery is not perfectly correlated to CECO Environmental it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When CECO Environmental for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CECE and ERII for more information.

Note

Are you currently holding both CECO Environmental and Energy Recovery in your portfolio? Please note if you are using this as a pair-trade strategy between CECO Environmental and Energy Recovery, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down CECO Environmental Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check CECO Environmental revenue. Based on the latest financial disclosure, CECO Environmental Corp reported 336.34 M of revenue. This is 90.39% lower than that of the Industrials sector and 43.78% higher than that of the Pollution & Treatment Controls industry. The revenue for all United States stocks is 96.44% higher than that of CECO Environmental. As for Energy Recovery we see revenue of 109.5 M, which is 53.19% lower than that of the Pollution & Treatment Controls

CECO Environmental336.34 Million
Sector233.92 Million
Energy109.5 Million
336.3 M
CECO Environmental
233.9 M
Sector
109.5 M
Energy

CECO Environmental has 77 percent chance to finish below $6.67 next week

CECO Environmental latest potential upside ascents over 8.33. CECO Environmental Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect CECO Environmental Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of CECO Environmental future alpha.

The Current Takeaway on CECO Environmental Investment

Although some other firms in the pollution & treatment controls industry are either recovering or due for a correction, CECO Environmental may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current CECO Environmental valuation and our trade advice on CECO Environmental is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to CECO Environmental.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of CECO Environmental Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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