Why the quality investor may take a look at CELESTICA INC (NYSE:CLS).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CELESTICA INC (NYSE:CLS) is suited for quality investing. Investors should of course do their own research, but we spotted CELESTICA INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of CLS highlighted

• The 5-year revenue growth of CLS has been remarkable, with 10.38% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• CLS demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 22.29% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a favorable Debt/Free Cash Flow Ratio of 3.01, CLS showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• CLS exhibits impressive Profit Quality (5-year) with a 151.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• CLS has experienced impressive EBIT growth over the past 5 years, with 42.42% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• CLS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of CLS telling us.

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, CLS scores 6 out of 10 in our fundamental rating. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has an excellent profitability rating, 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! These ratings would make CLS suitable for growth investing!

Check the latest full fundamental report of CLS for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.