NYSE:CLS, a growth stock which is not overvalued.

Our stock screener has spotted CELESTICA INC (NYSE:CLS) as a growth stock which is not overvalued. NYSE:CLS is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Understanding NYSE:CLS's Growth Score

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 8 out of 10:

• CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.32%, which is quite impressive.
• Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
• The Revenue has grown by 21.17% in the past year. This is a very strong growth!
• CLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
• Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 22.07% on average per year.
• The Revenue is expected to grow by 13.06% on average over the next years. This is quite good.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Valuation for NYSE:CLS

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:CLS has received a 5 out of 10:

• Based on the Price/Earnings ratio, CLS is valued a bit cheaper than 61.67% of the companies in the same industry.
• 63.33% of the companies in the same industry are more expensive than CLS, based on the Price/Forward Earnings ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 62.50% of the companies listed in the same industry.
• The decent 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 22.07% in the coming years.

Health Analysis for 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 5 out of 10:

• An Altman-Z score of 3.81 indicates that CLS is not in any danger for bankruptcy at the moment.
• CLS's Altman-Z score of 3.81 is fine compared to the rest of the industry. CLS outperforms 63.33% of its industry peers.
• The Debt to FCF ratio of CLS is 2.47, which is a good value as it means it would take CLS, 2.47 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of CLS (2.47) is better than 70.83% 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.
• Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Profitability Insights: 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 7 is a significant indicator of profitability:

• With a decent Return On Assets value of 6.36%, CLS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
• The Return On Equity of CLS (20.73%) is better than 90.83% of its industry peers.
• CLS has a Return On Invested Capital of 14.36%. This is amongst the best in the industry. CLS outperforms 91.67% of its industry peers.
• CLS's Profit Margin of 4.08% is fine compared to the rest of the industry. CLS outperforms 67.50% of its industry peers.
• CLS's Profit Margin has improved in the last couple of years.
• CLS's Operating Margin of 5.61% is fine compared to the rest of the industry. CLS outperforms 68.33% 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.

Disclaimer

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.