CELESTICA INC (CLS.CA) Stock Fundamental Analysis
TSX:CLS - Toronto Stock Exchange - CA15101Q2071 - Common Stock - Currency: CAD
Overall CLS gets a fundamental rating of 6 out of 10. We evaluated CLS against 15 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent on profitability, but there are some minor concerns on its financial health. CLS is growing strongly while it is still valued neutral. This is a good combination! With these ratings, CLS could be worth investigating further for growth 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.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
CLS has a better Return On Assets (6.36%) than 73.33% of its industry peers.
CLS has a better Return On Equity (20.73%) than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 14.36%, CLS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROIC | 14.36% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 4.08%, CLS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CLS has grown nicely.
With a decent Operating Margin value of 5.61%, CLS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS has a Gross Margin of 10.47%. This is amonst the worse of the industry: CLS underperforms 86.67% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% |
OM growth 3Y27.84%
OM growth 5Y31.24%
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.
There is no outstanding debt for CLS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 4.04 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score (4.04) which is comparable to the rest of the industry.
The Debt to FCF ratio of CLS is 2.47, which is a good value as it means it would take CLS, 2.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLS (2.47) is better than 80.00% of its industry peers.
CLS has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
CLS has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: CLS underperforms 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 | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.82
WACC7.88%
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 (1.47) which is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that CLS may have some problems paying its short term obligations.
With a Quick ratio value of 0.87, CLS perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.32%, 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
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 21.17%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%46.05%
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%18.93%
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 22.07% on average per year.
The Revenue is expected to grow by 13.06% on average over the next years. This is quite good.
EPS Next Y23.93%
EPS Next 2Y22.71%
EPS Next 3Y22.07%
EPS Next 5YN/A
Revenue Next Year12.13%
Revenue Next 2Y14.77%
Revenue Next 3Y13.06%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
Based on the Price/Earnings ratio of 30.53, the valuation of CLS can be described as expensive.
Based on the Price/Earnings ratio, CLS is valued a bit cheaper than the industry average as 73.33% of the companies are valued more expensively.
CLS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
CLS is valuated rather expensively with a Price/Forward Earnings ratio of 24.61.
Based on the Price/Forward Earnings ratio, CLS is valued cheaply inside the industry as 86.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 24.61 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CLS is cheaper than 73.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.37 | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 22.07% in the coming years.
PEG (NY)1.28
PEG (5Y)0.63
EPS Next 2Y22.71%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (2/21/2025, 7:00:00 PM)
169.73
-7.44 (-4.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners80.27%
Inst Owner ChangeN/A
Ins Owners0.57%
Ins Owner ChangeN/A
Market Cap19.70B
Analysts80
Price Target147.39 (-13.16%)
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)10.65%
Min EPS beat(2)10.52%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)10.52%
Max EPS beat(4)17.99%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)9.91%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)2.4%
Max Revenue beat(2)5.37%
Revenue beat(4)4
Avg Revenue beat(4)3.44%
Min Revenue beat(4)1.78%
Max Revenue beat(4)5.37%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)3.32%
Revenue beat(16)13
Avg Revenue beat(16)2.36%
PT rev (1m)69.2%
PT rev (3m)122.31%
EPS NQ rev (1m)2.5%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)8.4%
EPS NY rev (3m)8.4%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)2.49%
Revenue NY rev (3m)3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.53 | ||
| Fwd PE | 24.61 | ||
| P/S | 1.5 | ||
| P/FCF | 36.37 | ||
| P/OCF | 25.8 | ||
| P/B | 7.63 | ||
| P/tB | 11.98 | ||
| EV/EBITDA | 20.67 |
EPS(TTM)5.56
EY3.28%
EPS(NY)6.9
Fwd EY4.06%
FCF(TTM)4.67
FCFY2.75%
OCF(TTM)6.58
OCFY3.88%
SpS113.02
BVpS22.26
TBVpS14.17
PEG (NY)1.28
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROCE | 17.92% | ||
| ROIC | 14.36% | ||
| ROICexc | 16.65% | ||
| ROICexgc | 22.67% | ||
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% | ||
| FCFM | 4.13% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y27.84%
OM growth 5Y31.24%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 86.92% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 77.08% | ||
| Profit Quality | 101.17% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 4.04 |
F-Score8
WACC7.88%
ROIC/WACC1.82
Cap/Depr(3y)88.59%
Cap/Depr(5y)69.89%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)108.38%
Profit Quality(5y)159.89%
High Growth Momentum
Growth
EPS 1Y (TTM)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%46.05%
EPS Next Y23.93%
EPS Next 2Y22.71%
EPS Next 3Y22.07%
EPS Next 5YN/A
Revenue 1Y (TTM)21.17%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%18.93%
Revenue Next Year12.13%
Revenue Next 2Y14.77%
Revenue Next 3Y13.06%
Revenue Next 5YN/A
EBIT growth 1Y42.82%
EBIT growth 3Y52.92%
EBIT growth 5Y44.86%
EBIT Next Year39.15%
EBIT Next 3Y23.53%
EBIT Next 5YN/A
FCF growth 1Y42.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y37.12%
OCF growth 3Y27.84%
OCF growth 5Y6.55%