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 13 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS has a great profitability rating, there are some minor concerns on its financial health. 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 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.
In the past 5 years CLS has always been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.24%, CLS belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
CLS has a Return On Equity of 27.13%. This is amongst the best in the industry. CLS outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 17.26%, CLS belongs to the best 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 in line with the industry average of 12.74%.
The last Return On Invested Capital (17.26%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROIC | 17.26% |
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
With a decent Profit Margin value of 4.19%, CLS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
CLS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.94%, CLS belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
Looking at the Gross Margin, with a value of 10.76%, CLS is doing worse than 76.92% of the companies in the same industry.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% |
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.
CLS has less shares outstanding than it did 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.74 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a better Altman-Z score (4.74) than 69.23% of its industry peers.
CLS has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as CLS would need 3.08 years to pay back of all of its debts.
CLS's Debt to FCF ratio of 3.08 is fine compared to the rest of the industry. CLS outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that CLS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, CLS is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.74 |
ROIC/WACC2.21
WACC7.8%
2.3 Liquidity
A Current Ratio of 1.43 indicates that CLS should not have too much problems paying its short term obligations.
CLS's Current ratio of 1.43 is on the low side compared to the rest of the industry. CLS is outperformed by 69.23% of its industry peers.
A Quick Ratio of 0.85 indicates that CLS may have some problems paying its short term obligations.
CLS has a Quick ratio of 0.85. This is in the lower half of the industry: CLS underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 51.06% 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.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 21.05%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.42% yearly.
CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.65% yearly.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
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
CLS is valuated quite expensively with a Price/Earnings ratio of 35.92.
Compared to the rest of the industry, the Price/Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 76.92% of the companies listed in the same industry.
CLS's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.98.
With a Price/Forward Earnings ratio of 26.31, CLS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, CLS is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.49. CLS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 26.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CLS is valued cheaper than 92.31% 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 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.85 | ||
| EV/EBITDA | 24.63 |
4.3 Compensation for Growth
CLS's 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.
CLS's earnings are expected to grow with 22.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)0.75
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (6/27/2025, 7:00:00 PM)
209.03
+4.08 (+1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap24.16B
Analysts82.5
Price Target137.9 (-34.03%)
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)4.3%
Min EPS beat(2)1.95%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)7.48%
Min EPS beat(4)1.95%
Max EPS beat(4)10.78%
EPS beat(8)8
Avg EPS beat(8)10.16%
EPS beat(12)12
Avg EPS beat(12)8.62%
EPS beat(16)16
Avg EPS beat(16)9.76%
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.37%
Revenue beat(8)7
Avg Revenue beat(8)2.81%
Revenue beat(12)11
Avg Revenue beat(12)3.1%
Revenue beat(16)13
Avg Revenue beat(16)2.59%
PT rev (1m)5.21%
PT rev (3m)-8.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.92 | ||
| Fwd PE | 26.31 | ||
| P/S | 1.75 | ||
| P/FCF | 57.85 | ||
| P/OCF | 37.4 | ||
| P/B | 11.37 | ||
| P/tB | 19.26 | ||
| EV/EBITDA | 24.63 |
EPS(TTM)5.82
EY2.78%
EPS(NY)7.95
Fwd EY3.8%
FCF(TTM)3.61
FCFY1.73%
OCF(TTM)5.59
OCFY2.67%
SpS119.14
BVpS18.39
TBVpS10.85
PEG (NY)1.51
PEG (5Y)0.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROCE | 21.53% | ||
| ROIC | 17.26% | ||
| ROICexc | 19.37% | ||
| ROICexgc | 26.09% | ||
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% | ||
| FCFM | 3.03% |
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%
ROICexcg growth 3Y31.4%
ROICexcg 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-Score8
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 114.76% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 11.11 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 72.42% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.74 |
F-Score8
WACC7.8%
ROIC/WACC2.21
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)51.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%39.53%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
EBIT growth 1Y32.3%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y41.27%
OCF growth 3Y27.84%
OCF growth 5Y6.55%