CECO Environmental Corp. (CECO) vs Veralto Corporation (VLTO)

CECO Environmental Corp. and Veralto Corporation are both Pollution & Treatment Controls companies. Veralto Corporation is the larger, with a market value of $23.5B against $4.1B — 5.7× the size. CECO Environmental Corp. has negative trailing earnings, so its P/E is not meaningful; Veralto Corporation trades at 24.3×. CECO Environmental Corp. grew revenue faster over the last twelve months: 37.6% against 6.23%. Veralto Corporation has the higher net margin (17.4% vs −3.39%) and the higher return on invested capital (18.6% vs −0.12%). Across the 20 metrics below, Veralto Corporation leads on 12 and CECO Environmental Corp. on 8.

Valuation

Metric CECO VLTO Pollution & Treatment Controls median
P/E n/m 24.33 —
P/S 3.52 4.18 3.64
P/B 1.53 7.68 2.08
Price to free cash flow n/m 22.74 —
EV/EBITDA 126.99 18.06 17.68
EV/Sales 4.26 4.40 4.26
Earnings yield (0.93%) 4.11% (18.01%)
Free cash flow yield (0.32%) 4.40% (5.86%)

Profitability

Metric CECO VLTO Pollution & Treatment Controls median
Gross margin 32.15% 60.18% 34.73%
Operating margin (0.60%) 22.74% (29.01%)
Net margin (3.39%) 17.35% (31.94%)
Free cash flow margin (1.13%) 18.38% (12.20%)
Return on equity (2.57%) 34.31% (38.24%)
Return on assets (1.33%) 12.56% (26.06%)
Return on invested capital (0.12%) 18.57% 0.00%

Growth

Metric CECO VLTO Pollution & Treatment Controls median
Revenue growth (TTM) 37.64% 6.23% 9.79%
EPS growth (last fiscal year) 280.56% 12.57% —
Revenue growth, 5-year CAGR 19.63% 4.82% 8.56%
Net income growth, 5-year CAGR 43.55% 5.36% 0.00%

Health

Metric CECO VLTO Pollution & Treatment Controls median
Debt to equity 0.35 1.09 0.03
Current ratio 1.50 1.78 1.90
Net debt to EBITDA 1.36 0.47 0.30

Dividend

Metric CECO VLTO Pollution & Treatment Controls median
Dividend yield — 0.33% —
Payout ratio 0.00 — 0.00

Size

Metric CECO VLTO Pollution & Treatment Controls median
Market cap 4.10b 23.45b 48.08m

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