Hello my dears,

since this morning we have already had a great discussion here about $CECO (+1,9%) .

In the comments I read about an FCF yield below 1 and negative free cash flow.

And I ask myself all the time.

WHAT AM I MISSING HERE?

Looking forward to a great further discussion. 😘🙈😘

💸 The four types of cash flow at CECO - simply explained

🟦 1. cash flow (operations)

2026e: USD 83.20 million
2027e: USD 106.35 million

This is the operating cash flowi.e. the money generated by the core business. It shows how much liquidity CECO generates from normal business operations - without without investments or financing.

Typical components:

• Profit
• Depreciation and amortization
• Changes in working capital
• +/- other non-cash effects

👉 Interpretation: CECO significantly increases operating cash flow. This speaks for growing profitability and better cash conversion.

🟩 2. cash flow (investing)

2026e: USD -13.00 million
2027e: USD -13.00 million

This is the investment cash flow. It includes:

• Purchases of machinery, equipment, technology (CapEx)
• acquisitions
• Sales of assets

A negative value means: CECO invests in growth or maintenance of assets.

👉 Interpretation: -13 million USD is moderate. CECO is not a capital-intensive company. The investments are controlled and plannable.

🟥 3. cash flow (financing)

2026e: USD -64.00 million
2027e: USD -68.00 million

The financing cash flow shows

• Repayment of debt
• Proceeds from new debt
• Share buybacks
• dividends

A negative value means: CECO pays back more than it raises.

👉 Interpretation: CECO is reducing its debt or returning capital to shareholders. This is often a sign of financial strength and low dependence on outside capital.

🟨 4. free cash flow (FCF)

2026e: USD 68.60 million
2027e: USD 94.13 million

Free cash flow is the most important key figure for investors:

Free cash flow=operating cash flow-investment cash flow

At CECO:

• 2026e: USD 83.20-13.00=70.20 million → Finanzen.net shows USD 68.60 million (small model deviation)
• 2027e: 106.35-13.00=93.35 million USD → shown: 94.13 million USD

👉 Interpretation: CECO generates strong, growing free cash flowwhich can be used for the following purposes:

• Debt reduction
• acquisitions
• Share buybacks
• Dividends (if introduced later)

The increase in FCF is a very positive signal.

📊 Short summary for you

👉 CECO is a cash flow-strong company with controlled investments and growing operational efficiency.

FCF yield formula

Once we have the market cap, it's simple:

FCF-Yield=Free Cash Flow / Market Cap

📌 1. calculate market capitalization

Market cap = share price ⋅ number of shares

Market cap = 55.28⋅35,641,000 = USD 1.969 billion

So around USD 1.97 billion.

For CECO:

• FCF 2026e: USD 68.60 million
• FCF 2027e: USD 94.13 million

🟦 FCF yield 2026e

68,60 / 1,969=3,48%

➡️ FCF yield 2026e: approx. 3.5%

🟩 FCF yield 2027e

94,13 / 1,969=4,78%

🧠 Interpretation for investors

• 3.5-4.8% FCF yield is solid for a company with structural growth.
• The rising FCF yield shows that CECO is becoming operationally more efficient operationally more efficient.
• If growth continues, the market could later value CECO higher (multiple expansion).
• At the same time, CECO is not capital intensivewhich improves cash conversion.

@Raketentoni
@Get_Rich_or_Die_Tryin
@Dividendenopi