For those who appreciate growth without the sticker shock, NYSE:CLS is worth considering.

Our stock screener has singled out CELESTICA INC (NYSE:CLS) as an attractive growth opportunity. NYSE:CLS is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Assessing Growth for NYSE:CLS

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:CLS boasts a 7 out of 10:

• CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.23%, which is quite impressive.
• The Earnings Per Share has been growing by 17.61% on average over the past years. This is quite good.
• The Revenue has grown by 9.81% in the past year. This is quite good.
• The Earnings Per Share is expected to grow by 22.66% on average over the next years. This is a very strong growth
• Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 14.09% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Valuation for NYSE:CLS

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:CLS scores a 6 out of 10:

• Based on the Price/Earnings ratio, CLS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
• CLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
• Based on the Price/Forward Earnings ratio, CLS is valued a bit cheaper than 76.19% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.41, CLS is valued a bit cheaper.
• 75.40% of the companies in the same industry are more expensive than CLS, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of CLS may justify a higher PE ratio.
• CLS's earnings are expected to grow with 22.66% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:CLS

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:CLS was assigned a score of 5 for health:

• CLS has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as CLS would need 2.57 years to pay back of all of its debts.
• CLS has a Debt to FCF ratio of 2.57. This is in the better half of the industry: CLS outperforms 69.05% of its industry peers.
• A Debt/Equity ratio of 0.41 indicates that CLS is not too dependend on debt financing.

Profitability Assessment of NYSE:CLS

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CLS, the assigned 8 is a significant indicator of profitability:

• CLS has a Return On Assets of 4.15%. This is in the better half of the industry: CLS outperforms 65.08% of its industry peers.
• CLS's Return On Equity of 13.83% is amongst the best of the industry. CLS outperforms 80.95% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.28%, CLS belongs to the top of the industry, outperforming 82.54% of the companies in the same industry.
• The last Return On Invested Capital (11.28%) for CLS is above the 3 year average (8.21%), which is a sign of increasing profitability.
• The Profit Margin of CLS (3.07%) is better than 61.90% of its industry peers.
• CLS's Profit Margin has improved in the last couple of years.
• CLS has a better Operating Margin (5.00%) than 66.67% of its industry peers.
• In the last couple of years the Operating Margin of CLS has grown nicely.
• In the last couple of years the Gross Margin of CLS has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of CLS contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.