CELESTICA INC (CLS.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CLS - CA15101Q2071 - Common Stock
406.01 CAD
-9.36 (-2.25%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 14 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is showing excellent growth while it is valued at reasonable prices. 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
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
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.
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 9.56%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| 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
The Profit Margin of CLS (6.35%) is better than 78.57% 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 78.57% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
Looking at the Gross Margin, with a value of 12.04%, CLS is doing worse than 85.71% of the companies in the same industry.
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%
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.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.96 indicates that CLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.96, 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 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.
With an excellent Debt to FCF ratio value of 1.97, CLS belongs to the best of the industry, outperforming 92.86% 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.
CLS has a Debt to Equity ratio of 0.37. This is in the lower half of the industry: CLS underperforms 64.29% 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 | 6.96 |
ROIC/WACC2.63
WACC8.12%
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.
Looking at the Current ratio, with a value of 1.47, CLS is in line with its industry, outperforming 42.86% 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.
CLS has a Quick ratio of 0.88. This is comparable to the rest of the industry: CLS outperforms 42.86% 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.
CLS shows a strong growth in Revenue. In the last year, 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.
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 Year26.52%
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.
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
The Price/Earnings ratio is 56.16, which means the current valuation is very expensive for CLS.
CLS's Price/Earnings ratio is rather cheap when compared to the industry. CLS is cheaper than 85.71% of the companies in the same industry.
CLS is valuated expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.29, CLS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CLS is valued cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CLS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.16 | ||
| Fwd PE | 35.29 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than CLS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.63 | ||
| EV/EBITDA | 35.29 |
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.
PEG (NY)1.06
PEG (5Y)1.17
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:CLS (12/31/2025, 7:00:00 PM)
406.01
-9.36 (-2.25%)
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 Cap46.71B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target347.67 (-14.37%)
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 | 56.16 | ||
| Fwd PE | 35.29 | ||
| P/S | 3.02 | ||
| P/FCF | 85.63 | ||
| P/OCF | 61.74 | ||
| P/B | 16.81 | ||
| P/tB | 24.14 | ||
| EV/EBITDA | 35.29 |
EPS(TTM)7.23
EY1.78%
EPS(NY)11.5
Fwd EY2.83%
FCF(TTM)4.74
FCFY1.17%
OCF(TTM)6.58
OCFY1.62%
SpS134.33
BVpS24.15
TBVpS16.82
PEG (NY)1.06
PEG (5Y)1.17
Graham Number62.68
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 | 6.96 |
F-Score7
WACC8.12%
ROIC/WACC2.63
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 of CELESTICA INC (CLS.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CELESTICA INC (CLS.CA). This can be considered as Fairly Valued.
What is the profitability of CLS stock?
CELESTICA INC (CLS.CA) has a profitability rating of 8 / 10.
What is the valuation of CELESTICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CELESTICA INC (CLS.CA) is 56.16 and the Price/Book (PB) ratio is 16.81.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS.CA) is 8 / 10.