Reasonable Growth, Debt Levels, and a High ROIC Make CELESTICA INC (NYSE:CLS) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CELESTICA INC (NYSE:CLS) is suited for quality investing. Investors should of course do their own research, but we spotted CELESTICA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:CLS Holds Appeal for Quality Investors.

• CELESTICA INC has achieved substantial revenue growth over the past 5 years, with a 10.38% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• CELESTICA INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 22.67% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• CELESTICA INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.47, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 160.0%, CELESTICA INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• CELESTICA INC has consistently achieved strong EBIT growth over the past 5 years, with a 44.86% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• CELESTICA INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

CLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS has a great profitability rating, there are some minor concerns on its financial health. CLS is growing strongly while it is still valued neutral. This is a good combination! This makes CLS very considerable for growth investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.