CELESTICA INC (CLS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock
415.77 CAD
-5.96 (-1.41%)
Overall CLS gets a fundamental rating of 7 out of 10. We evaluated CLS against 13 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLS is growing strongly while it is still valued neutral. This is a good combination! These ratings could make CLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
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.
CLS's Return On Equity of 35.33% is amongst the best of the industry. CLS outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.33%, CLS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CLS is in line with the industry average of 9.56%.
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 Profit Margin of 6.35%. This is in the better half of the industry: CLS outperforms 76.92% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS has a Operating Margin of 7.33%. This is in the better half of the industry: CLS outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS has a worse Gross Margin (12.04%) than 84.62% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
Compared to 1 year ago, CLS has less shares outstanding
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
CLS has an Altman-Z score of 7.02. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CLS (7.02) is better than 69.23% 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.
The Debt to FCF ratio of CLS (1.97) is better than 92.31% of its industry peers.
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 69.23% 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 | 7.02 |
ROIC/WACC2.68
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
The Current ratio of CLS (1.47) is worse than 61.54% 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 worse Quick ratio (0.88) than 61.54% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 47.90% over the past year.
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 22.09% in the past year. This is a very strong growth!
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
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
CLS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.74% yearly.
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.48%
Revenue Next 2Y29.67%
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
The Price/Earnings ratio is 57.51, which means the current valuation is very expensive for CLS.
84.62% of the companies in the same industry are more expensive than CLS, based on the Price/Earnings ratio.
CLS is valuated expensively when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 36.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a rather cheap valuation: CLS is cheaper than 92.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, CLS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.51 | ||
| Fwd PE | 36.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLS is valued a bit cheaper than 76.92% of the companies in the same industry.
69.23% 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 | 87.67 | ||
| EV/EBITDA | 35.77 |
4.3 Compensation for Growth
CLS's 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.
CLS's earnings are expected to grow with 43.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)1.2
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CLS (12/23/2025, 7:00:00 PM)
415.77
-5.96 (-1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.88%
Inst Owner ChangeN/A
Ins Owners0.52%
Ins Owner ChangeN/A
Market Cap47.83B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target347.67 (-16.38%)
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)29.04%
PT rev (3m)54.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.63%
Revenue NY rev (3m)5.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.51 | ||
| Fwd PE | 36.13 | ||
| P/S | 3.09 | ||
| P/FCF | 87.67 | ||
| P/OCF | 63.21 | ||
| P/B | 17.21 | ||
| P/tB | 24.71 | ||
| EV/EBITDA | 35.77 |
EPS(TTM)7.23
EY1.74%
EPS(NY)11.51
Fwd EY2.77%
FCF(TTM)4.74
FCFY1.14%
OCF(TTM)6.58
OCFY1.58%
SpS134.36
BVpS24.16
TBVpS16.82
PEG (NY)1.08
PEG (5Y)1.2
Graham Number62.69
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 | 7.02 |
F-Score7
WACC7.95%
ROIC/WACC2.68
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 Year26.48%
Revenue Next 2Y29.67%
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 for CLS stock?
ChartMill assigns a valuation rating of 5 / 10 to CELESTICA INC (CLS.CA). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS.CA) stock?
CELESTICA INC (CLS.CA) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS.CA) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS.CA) is expected to grow by 53.05% in the next year.