CELESTICA INC (NYSE:CLS) is showing good growth, while it is not too expensive.

Our stock screener has singled out CELESTICA INC (NYSE:CLS) as an attractive growth opportunity. CLS is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Unpacking CLS's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. CLS has achieved a 8 out of 10:

• The Earnings Per Share has grown by an impressive 61.32% 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 21.17%.
• CLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
• Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 24.42% on average per year.
• CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.06% yearly.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering CLS's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. CLS has earned a 6 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 69.11% of the companies listed in the same industry.
• CLS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.72.
• Based on the Price/Forward Earnings ratio, CLS is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
• CLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.79.
• 60.16% 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 60.98% of the companies are valued more expensively.
• CLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of CLS 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.

Health Analysis for CLS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For CLS, the assigned 5 for health provides valuable insights:

• CLS has an Altman-Z score of 3.30. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.30, CLS is doing good in the industry, outperforming 61.79% of the companies in the same industry.
• The Debt to FCF ratio of CLS is 3.01, which is a good value as it means it would take CLS, 3.01 years of fcf income to pay off all of its debts.
• CLS's Debt to FCF ratio of 3.01 is fine compared to the rest of the industry. CLS outperforms 66.67% of its industry peers.
• A Debt/Equity ratio of 0.49 indicates that CLS is not too dependend on debt financing.

Exploring CLS's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For CLS, the assigned 8 is a significant indicator of profitability:

• CLS's Return On Assets of 6.25% is fine compared to the rest of the industry. CLS outperforms 79.67% of its industry peers.
• The Return On Equity of CLS (20.36%) is better than 90.24% of its industry peers.
• CLS has a better Return On Invested Capital (14.12%) than 92.68% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CLS is above the industry average of 8.91%.
• The last Return On Invested Capital (14.12%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
• CLS has a Profit Margin of 4.01%. This is in the better half of the industry: CLS outperforms 69.92% of its industry peers.
• In the last couple of years the Profit Margin of CLS has grown nicely.
• CLS has a better Operating Margin (5.51%) than 69.11% of its industry peers.
• In the last couple of years the Operating Margin of CLS has grown nicely.
• In the last couple of years the Gross Margin of CLS has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Our latest full fundamental report of CLS contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.