CELESTICA INC (CLS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock
420.38 CAD
+20.48 (+5.12%)
Overall CLS gets a fundamental rating of 7 out of 10. We evaluated CLS against 14 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make CLS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
In the past 5 years CLS has always been profitable.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.85%, CLS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 35.33%, CLS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CLS has a better Return On Invested Capital (21.33%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is in line with the industry average of 9.87%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(21.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS has a better Profit Margin (6.35%) than 78.57% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS's Operating Margin of 7.33% is fine compared to the rest of the industry. CLS outperforms 78.57% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.04%, CLS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.80 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS's Altman-Z score of 6.80 is in line compared to the rest of the industry. CLS outperforms 57.14% of its industry peers.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.97, CLS belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, CLS is doing worse than 64.29% of the companies in the same industry.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.8 |
ROIC/WACC2.54
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
CLS has a Current ratio of 1.47. This is comparable to the rest of the industry: CLS outperforms 42.86% of its industry peers.
A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
CLS has a Quick ratio (0.88) which is in line with its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CLS is valuated quite expensively with a Price/Earnings ratio of 57.43.
Based on the Price/Earnings ratio, CLS is valued cheaper than 85.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (27.19), we can say CLS is valued expensively.
Based on the Price/Forward Earnings ratio of 36.11, the valuation of CLS can be described as expensive.
CLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 92.86% of the companies in the same industry.
CLS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.43 | ||
| Fwd PE | 36.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLS is valued a bit cheaper than 78.57% of the companies in the same industry.
71.43% of the companies in the same industry are more expensive than CLS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.62 | ||
| EV/EBITDA | 34.03 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 43.27% in the coming years.
PEG (NY)1.08
PEG (5Y)1.19
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CLS (1/9/2026, 7:00:00 PM)
420.38
+20.48 (+5.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.66%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap48.36B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target347.67 (-17.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)0%
PT rev (3m)54.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)0%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.43 | ||
| Fwd PE | 36.11 | ||
| P/S | 3.09 | ||
| P/FCF | 87.62 | ||
| P/OCF | 63.17 | ||
| P/B | 17.2 | ||
| P/tB | 24.7 | ||
| EV/EBITDA | 34.03 |
EPS(TTM)7.32
EY1.74%
EPS(NY)11.64
Fwd EY2.77%
FCF(TTM)4.8
FCFY1.14%
OCF(TTM)6.65
OCFY1.58%
SpS135.93
BVpS24.44
TBVpS17.02
PEG (NY)1.08
PEG (5Y)1.19
Graham Number63.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.8 |
F-Score7
WACC8.41%
ROIC/WACC2.54
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS.CA FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.CA.
What is the valuation status of CELESTICA INC (CLS.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CELESTICA INC (CLS.CA). This can be considered as Fairly Valued.
What is the profitability of CLS stock?
CELESTICA INC (CLS.CA) has a profitability rating of 8 / 10.
What is the valuation of CELESTICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CELESTICA INC (CLS.CA) is 57.43 and the Price/Book (PB) ratio is 17.2.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS.CA) is 7 / 10.