Looking for growth without the hefty price tag? Consider NYSE:CLS.

Our stock screening tool has pinpointed CELESTICA INC (NYSE:CLS) as a growth stock that isn't overvalued. NYSE:CLS is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Deciphering NYSE:CLS's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:CLS has earned a 7 for growth:

• 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.
• 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 13.45% in the past year. This is quite good.
• Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 22.66% on average per year.
• The Revenue is expected to grow by 14.09% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• 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.

Valuation Assessment of NYSE:CLS

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:CLS has earned a 9 for valuation:

• CLS's Price/Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 84.13% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.93, CLS is valued rather cheaply.
• The Price/Forward Earnings ratio is 10.53, which indicates a very decent valuation of CLS.
• Based on the Price/Forward Earnings ratio, CLS is valued cheaply inside the industry as 89.68% of the companies are valued more expensively.
• The average S&P500 Price/Forward Earnings ratio is at 21.62. CLS is valued rather cheaply when compared to this.
• CLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CLS is cheaper than 80.95% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, CLS is valued cheaply inside the industry as 80.16% 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.
• CLS has an outstanding profitability rating, which 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.

How do we evaluate the Health for 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:

• The Debt to FCF ratio of CLS is 2.77, which is a good value as it means it would take CLS, 2.77 years of fcf income to pay off all of its debts.
• CLS's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. CLS outperforms 68.25% of its industry peers.
• A Debt/Equity ratio of 0.49 indicates that CLS is not too dependend on debt financing.

What does the Profitability looks like for NYSE:CLS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CLS has earned a 8 out of 10:

• CLS has a Return On Assets of 6.22%. This is in the better half of the industry: CLS outperforms 79.37% 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.
• CLS has a better Return On Invested Capital (13.13%) than 89.68% 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.
• CLS has a better Profit Margin (4.16%) than 67.46% of its industry peers.
• CLS's Profit Margin has improved in the last couple of years.
• The Operating Margin of CLS (5.68%) is better than 68.25% of its industry peers.
• In the last couple of years the Operating Margin of CLS has grown nicely.
• CLS's Gross Margin has improved in the last couple of years.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of CLS for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. 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.