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

CELESTICA INC (NYSE:CLS) has caught the eye of our stock screener as an affordable growth stock. NYSE:CLS is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth Metrics 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 41.71%, 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 10.79% in the past year. This is quite good.
• CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.66% yearly.
• The Revenue is expected to grow by 14.09% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NYSE:CLS

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:CLS boasts a 6 out of 10:

• 73.02% of the companies in the same industry are more expensive than CLS, based on the Price/Earnings ratio.
• When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (28.27), we can say CLS is valued slightly cheaper.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 75.40% of the companies listed in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 73.02% of the companies listed in the same industry.
• CLS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CLS is cheaper than 78.57% of the companies in the same industry.
• CLS's 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.
• A more expensive valuation may be justified as CLS's earnings are expected to grow with 22.66% in the coming years.

Understanding NYSE:CLS's Health Score

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:CLS has earned a 5 out of 10:

• The Debt to FCF ratio of CLS is 2.34, which is a good value as it means it would take CLS, 2.34 years of fcf income to pay off all of its debts.
• CLS's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. CLS outperforms 68.25% of its industry peers.
• CLS has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Assessing Profitability for NYSE:CLS

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CLS scores a 8 out of 10:

• The Return On Assets of CLS (5.63%) is better than 77.78% of its industry peers.
• CLS has a Return On Equity of 18.79%. This is amongst the best in the industry. CLS outperforms 88.89% of its industry peers.
• CLS's Return On Invested Capital of 13.35% is amongst the best of the industry. CLS outperforms 89.68% of its industry peers.
• The 3 year average ROIC (8.21%) for CLS is below the current ROIC(13.35%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 3.86%, CLS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• In the last couple of years the Profit Margin of CLS has grown nicely.
• The Operating Margin of CLS (5.66%) is better than 69.05% 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.

For an up to date full fundamental analysis you can check the fundamental report of CLS

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.