Ceco Environmental Corp (CECO) is overvalued and Energy Recovery Inc (ERII) is overvalued.
Both trade above our estimate of their intrinsic value. ERII is the closer of the two: -62%, against -949% for CECO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.7% values the shares at $7.03; the price of $73.71 is 949% above that value, and 72% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 9.6% (average of 3 methods) values the shares at $4.38; the price of $7.12 is 62% above that value, and 73% of that value comes from beyond year five.
Leak Score 60/100 on 9 of 12 signals
| Metric | CECO | ERII |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $73.71 | $7.12 |
| Intrinsic value | $7.03 | $4.38 |
| Margin of safety | -949% | -62% |
| Leak Score | 0/100 (2/12) | 60/100 (9/12) |
| Market cap | $4.3B | $363M |
| Revenue growth, 5 years | 19.6% | 2.6% |
| Operating margin | 5.8% | 16.3% |
| Net margin | -3.4% | 12.7% |
| Return on equity | -2.6% | 8.6% |
| Debt to equity | 0.37 | 0.05 |
| P/E | — | 25.2x |
| Forward P/E | 23.4x | 44.0x |
| P/B | 2.1x | 2.1x |