CECO Environmental Corp. CECO

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
65/100
Moderate

About CECO Environmental Corp.

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions in the United States, the United Kingdom, the Netherlands, China, and internationally. It operates through Engineered Systems and Industrial Process Solutions segments. The company offers emissions management, fluid bed cyclones, thermal acoustics, and separation and filtration solutions; engineering services and environmental systems; and … Full CECO analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 73.7th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Operating Expense Control OpEx growth is controlled (score 0.72), demonstrating operating leverage.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.26), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
60

Where CECO ranks in Pollution & Treatment Controls

CECO Environmental Corp. ranks #6 of 20 scored companies in Pollution & Treatment Controls by moat score — the top 30%. The widest moat in the group is Veralto Corp (VLTO) at 82/100.

Moat scores for companies ranked near CECO in Pollution & Treatment Controls
# Company Moat score Rating
2 Energy Recovery, Inc. ERII 81/100 Strong
3 Federal Signal Corporation FSS 77/100 Strong
4 Atmus Filtration Technologies I ATMU 76/100 Strong
5 Zurn Elkay Water Solutions Corp ZWS 75/100 Moderate
6 CECO Environmental Corp. CECO 65/100 Moderate
7 Euro Tech Holdings Company Limi CLWT 53/100 Moderate
8 Fuel Tech, Inc. FTEK 51/100 Moderate
9 Rain Enhancement Technologies H RAINW 49/100 Developing
10 LiqTech International, Inc. LIQT 45/100 Developing

See every General Corporate company ranked by moat score →

How CECO scores on the Corporate Default defenses

Pricing Power

Score 60 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 77 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 62 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 74 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 42 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 76 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CECO's moat

What is CECO Environmental Corp.'s moat score?

CECO Environmental Corp. (CECO) scores 65 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 20 scored companies in Pollution & Treatment Controls, the top 30%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 19 companies in Pollution & Treatment Controls. Its strongest defense is Cost Advantage (77/100) and its weakest is Resilience (42/100).

How does CECO Environmental Corp. compare with other Pollution & Treatment Controls companies?

CECO Environmental Corp. ranks #6 of 20 scored companies in Pollution & Treatment Controls by moat score. The widest moat in Pollution & Treatment Controls is Veralto Corp (VLTO) at 82/100. The companies ranked closest are Zurn Elkay Water Solutions Corp (ZWS) at 75 just above it and Euro Tech Holdings Company Limi (CLWT) at 53 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 19 companies in Pollution & Treatment Controls. The defenses are then weighted to produce the overall score out of 100.

Why is CECO Environmental Corp. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for CECO Environmental Corp.?

The Corporate Default template measures 6 defenses, and CECO scores: Pricing Power (60), Cost Advantage (77), Customer Stickiness (62), Capital Efficiency (74), Resilience (42), Scale & Market Position (76). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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