CELESTICA INC (CLS.CA) Stock Fundamental Analysis
Canada - TSX:CLS - CA15101Q2071 - Common Stock
395.83 CAD
+17.04 (+4.5%)
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
CLS had a positive operating cash flow in the past year.
Each year in the past 5 years CLS has been profitable.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
CLS has a better Return On Assets (8.63%) than 92.86% of its industry peers.
With an excellent Return On Equity value of 30.63%, CLS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 19.07%, CLS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 9.03%.
The last Return On Invested Capital (19.07%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
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
The Profit Margin of CLS (5.09%) is better than 71.43% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
Looking at the Operating Margin, with a value of 6.56%, CLS is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
With a Gross Margin value of 11.36%, CLS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
CLS has a worse debt/assets ratio than last year.
2.2 Solvency
CLS has an Altman-Z score of 6.47. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.47, CLS is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
CLS has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as CLS would need 2.27 years to pay back of all of its debts.
CLS has a Debt to FCF ratio of 2.27. This is amongst the best in the industry. CLS outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.48) is worse than 71.43% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 6.47 |
ROIC/WACC2.28
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CLS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.44, CLS is doing worse than 64.29% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that CLS may have some problems paying its short term obligations.
CLS has a worse Quick ratio (0.86) than 64.29% 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 | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.06% over the past year.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 20.52%.
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)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.74% yearly.
CLS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.31% yearly.
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 59.52, CLS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (27.67), we can say CLS is valued expensively.
With a Price/Forward Earnings ratio of 42.58, CLS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a rather cheap valuation: CLS is cheaper than 92.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (23.33), we can say CLS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.52 | ||
| Fwd PE | 42.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 78.57% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 84.07 | ||
| EV/EBITDA | 36.9 |
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 27.45% in the coming years.
PEG (NY)1.43
PEG (5Y)1.24
EPS Next 2Y30.03%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (10/23/2025, 7:00:00 PM)
395.83
+17.04 (+4.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.85%
Inst Owner ChangeN/A
Ins Owners0.52%
Ins Owner ChangeN/A
Market Cap45.53B
Revenue(TTM)10.59B
Net Income(TTM)538.40M
Analysts81.25
Price Target224.6 (-43.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)0%
PT rev (3m)62.87%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)12.72%
EPS NY rev (1m)0%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)8.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.52 | ||
| Fwd PE | 42.58 | ||
| P/S | 3.07 | ||
| P/FCF | 84.07 | ||
| P/OCF | 59.13 | ||
| P/B | 18.46 | ||
| P/tB | 28.72 | ||
| EV/EBITDA | 36.9 |
EPS(TTM)6.65
EY1.68%
EPS(NY)9.3
Fwd EY2.35%
FCF(TTM)4.71
FCFY1.19%
OCF(TTM)6.69
OCFY1.69%
SpS129.11
BVpS21.44
TBVpS13.78
PEG (NY)1.43
PEG (5Y)1.24
Graham Number56.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
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 Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 6.47 |
F-Score7
WACC8.35%
ROIC/WACC2.28
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)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y34.86%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%