NYSE:CLS stands out as a growth opportunity that won't break the bank.

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.

Deciphering NYSE:CLS's Growth Rating

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:

• The Earnings Per Share has grown by an impressive 60.09% over the past year.
• 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.
• Looking at the last year, CLS shows a quite strong growth in Revenue. The Revenue has grown by 17.52% in the last year.
• The Earnings Per Share is expected to grow by 27.81% on average over the next years. This is a very strong growth
• CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.98% yearly.
• 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.

How do we evaluate the Valuation for NYSE:CLS?

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:CLS has achieved a 6 out of 10:

• Based on the Price/Earnings ratio, CLS is valued a bit cheaper than the industry average as 62.81% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 62.81% of the companies listed in the same industry.
• CLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CLS is cheaper than 61.98% of the companies in the same industry.
• 64.46% of the companies in the same industry are more expensive than CLS, based on the Price/Free Cash Flow ratio.
• 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 27.49% in the coming years.

Evaluating Health: NYSE:CLS

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 7 out of 10:

• An Altman-Z score of 3.76 indicates that CLS is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.76, CLS is in the better half of the industry, outperforming 60.33% of the companies in the same industry.
• CLS has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CLS would need 2.47 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.47, CLS is in the better half of the industry, outperforming 71.90% of the companies in the same industry.
• A Debt/Equity ratio of 0.49 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.
• The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Profitability Insights: 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:

• CLS has a Return On Assets of 6.36%. This is in the better half of the industry: CLS outperforms 77.69% of its industry peers.
• The Return On Equity of CLS (20.73%) is better than 90.08% of its industry peers.
• With an excellent Return On Invested Capital value of 13.55%, CLS belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
• The 3 year average ROIC (8.21%) for CLS is below the current ROIC(13.55%), indicating increased profibility in the last year.
• CLS's Profit Margin of 4.08% is fine compared to the rest of the industry. CLS outperforms 66.94% of its industry peers.
• CLS's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 5.61%, CLS is doing good in the industry, outperforming 66.94% of the companies in the same industry.
• 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.

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

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.