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

Uncover the potential of CELESTICA INC (NYSE:CLS), a growth stock that our stock screener found to be reasonably priced. NYSE:CLS is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Examination for NYSE:CLS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:CLS has received a 7 out of 10:

• CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.43%, which is quite impressive.
• Measured over the past years, CLS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.61% on average per year.
• The Revenue has grown by 13.45% 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.
• 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.
• 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.

Exploring NYSE:CLS's Valuation

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 7 out of 10:

• CLS's Price/Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 81.75% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.72. CLS is valued slightly cheaper when compared to this.
• Based on the Price/Forward Earnings ratio, CLS is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 20.97. CLS is valued slightly cheaper when compared to this.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 76.98% 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 75.40% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• CLS has an outstanding profitability rating, which 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.

A Closer Look at Health for NYSE:CLS

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:

• CLS has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as CLS would need 2.77 years to pay back of all of its debts.
• CLS's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. CLS outperforms 65.87% of its industry peers.
• CLS has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.

How do we evaluate the Profitability for NYSE:CLS?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:CLS, the assigned 8 is noteworthy for profitability:

• CLS has a better Return On Assets (6.22%) than 78.57% of its industry peers.
• Looking at the Return On Equity, with a value of 20.28%, CLS belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
• The Return On Invested Capital of CLS (13.13%) is better than 88.89% of its industry peers.
• The 3 year average ROIC (8.21%) for CLS is below the current ROIC(13.13%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 4.16%, CLS is doing good in the industry, outperforming 67.46% of the companies in the same industry.
• CLS's Profit Margin has improved in the last couple of years.
• CLS has a Operating Margin of 5.68%. This is in the better half of the industry: CLS outperforms 68.25% of its industry peers.
• CLS's Operating Margin has improved in the last couple of years.
• CLS's Gross Margin has improved in the last couple of years.

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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.