CELESTICA INC (CLS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock
422.88 CAD
+7.11 (+1.71%)
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 priced too expensively while it is growing strongly. Keep and eye on this one! 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.
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
The Return On Assets of CLS (10.85%) is better than 100.00% of its industry peers.
CLS has a Return On Equity of 35.33%. This is amongst the best in the industry. CLS outperforms 100.00% of its industry peers.
CLS has a Return On Invested Capital of 21.33%. This is amongst the best in the industry. CLS outperforms 100.00% of its industry peers.
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's Profit Margin of 6.35% is fine compared to the rest of the industry. CLS outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
The Operating Margin of CLS (7.33%) is better than 76.92% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 12.04% is on the low side compared to the rest of the industry. CLS is outperformed by 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
Compared to 5 years ago, CLS has less shares outstanding
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.11 indicates that CLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.11, CLS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off 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 92.31% 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.
The Debt to Equity ratio of CLS (0.37) is worse than 69.23% 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 | 7.11 |
ROIC/WACC2.68
WACC7.96%
2.3 Liquidity
CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting 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 Quick ratio of 0.88. This is in the lower half of the industry: CLS underperforms 61.54% of 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.
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.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 22.09%.
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
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.14% yearly.
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
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
CLS is valuated quite expensively with a Price/Earnings ratio of 58.57.
Based on the Price/Earnings ratio, CLS is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (26.92), we can say CLS is valued expensively.
The Price/Forward Earnings ratio is 36.80, which means the current valuation is very expensive for CLS.
CLS's Price/Forward Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 92.31% 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 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.57 | ||
| Fwd PE | 36.8 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CLS is cheaper than 76.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 89.29 | ||
| EV/EBITDA | 36.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent 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 43.27% in the coming years.
PEG (NY)1.1
PEG (5Y)1.22
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 (12/24/2025, 7:00:00 PM)
422.88
+7.11 (+1.71%)
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 Cap48.65B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target347.67 (-17.79%)
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)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.57 | ||
| Fwd PE | 36.8 | ||
| P/S | 3.15 | ||
| P/FCF | 89.29 | ||
| P/OCF | 64.37 | ||
| P/B | 17.53 | ||
| P/tB | 25.17 | ||
| EV/EBITDA | 36.42 |
EPS(TTM)7.22
EY1.71%
EPS(NY)11.49
Fwd EY2.72%
FCF(TTM)4.74
FCFY1.12%
OCF(TTM)6.57
OCFY1.55%
SpS134.18
BVpS24.13
TBVpS16.8
PEG (NY)1.1
PEG (5Y)1.22
Graham Number62.61
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 | 7.11 |
F-Score7
WACC7.96%
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 Year26.52%
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 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.