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.

Deciphering NYSE:CLS's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:CLS has achieved a 7 out of 10:

• The Earnings Per Share has grown by an impressive 41.71% over the past year.
• CLS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.61% yearly.
• Looking at the last year, CLS shows a quite strong growth in Revenue. The Revenue has grown by 10.79% in the last year.
• The Earnings Per Share is expected to grow by 22.66% on average over the next years. This is a very strong growth
• 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.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: 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:

• Compared to the rest of the industry, the Price/Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 73.81% of the companies listed in the same industry.
• CLS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.42, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 76.19% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 20.02, CLS is valued a bit cheaper.
• CLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CLS is cheaper than 72.22% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 75.40% of the companies listed 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

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 has a Debt to FCF ratio of 2.34. This is in the better half of the industry: CLS outperforms 67.46% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that CLS is not too dependend on debt financing.
• 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.

Profitability Examination for 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's Return On Assets of 5.63% is fine compared to the rest of the industry. CLS outperforms 76.19% of its industry peers.
• The Return On Equity of CLS (18.79%) is better than 88.10% of its industry peers.
• CLS's Return On Invested Capital of 13.35% is amongst the best of the industry. CLS outperforms 88.89% 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.
• CLS's Operating Margin of 5.66% is fine compared to the rest of the industry. CLS outperforms 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.