CELESTICA INC (CLS.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock

422.46 CAD

+6.93 (+1.67%)

Last: 1/26/2026, 7:00:00 PM

Fundamental Rating

CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 15 industry peers in the Electronic Equipment, Instruments & Components industry. CLS gets an excellent profitability rating and is at the same time showing great financial health properties. CLS is not overvalued while it is showing excellent growth. This is an interesting combination. This makes CLS very considerable for growth and quality investing!

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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.
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 (10.85%) than 100.00% of its industry peers.
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's Return On Invested Capital of 21.33% is amongst the best of the industry. CLS outperforms 100.00% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This 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 80.00% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS has a better Operating Margin (7.33%) than 80.00% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
The Gross Margin of CLS (12.04%) is worse than 80.00% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
CLS has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 7.09 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score of 7.09. This is comparable to the rest of the industry: CLS outperforms 60.00% 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 93.33% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.37) is worse than 60.00% 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	0.37
Debt/FCF	1.97
Altman-Z	7.09

ROIC/WACC2.67

WACC7.99%

2.3 Liquidity

A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.47, CLS is in line with its industry, outperforming 46.67% of the companies in the same industry.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CLS (0.88) is comparable to the rest of the industry.
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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 47.90% 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.
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

Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 38.14% on average per year.
Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 27.74% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 58.35, the valuation of CLS can be described as expensive.
CLS's Price/Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 86.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. CLS is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 36.68, CLS can be considered very expensive at the moment.
CLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 93.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CLS is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	58.35
Fwd PE	36.68

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CLS is valued a bit cheaper than 80.00% of the companies 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 73.33% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	89.01
EV/EBITDA	36.31

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.