Celestica Inc (NYSE:CLS): A Strong Candidate for Affordable Growth

Celestica Inc (NYSE:CLS) is a global provider of supply chain solutions, serving equipment manufacturers and service providers across two key segments: Advanced Technology Solutions and Connectivity & Cloud Solutions. The company operates in industries such as aerospace, defense, industrial, health tech, and enterprise technology.

Affordable growth stocks are companies that demonstrate strong earnings and revenue expansion while trading at reasonable valuations. These stocks balance growth potential with financial stability, making them attractive for investors seeking long-term appreciation without overpaying.

Why Celestica Inc Fits the Affordable Growth Criteria

Celestica Inc (NYSE:CLS) stands out as an affordable growth candidate based on its fundamental strengths:

• Strong Growth (Rating: 8/10) – The company has delivered impressive earnings per share (EPS) growth of 61.32% over the past year, with revenue expanding by 21.17%. Future projections suggest continued growth, with EPS expected to rise by 24.42% annually.
• High Profitability (Rating: 8/10) – Celestica boasts a solid return on equity (23.10%) and return on invested capital (15.40%), outperforming most industry peers. Its profit margin (4.54%) has also improved in recent years.
• Reasonable Valuation (Rating: 6/10) – While the stock trades at a P/E ratio of 23.50, it remains cheaper than 65.60% of its industry peers. The forward P/E of 18.99 suggests a more attractive valuation relative to future earnings.
• Moderate Financial Health (Rating: 5/10) – The company maintains a manageable debt-to-equity ratio (0.41) and a stable Altman-Z score (3.57), indicating low bankruptcy risk. However, liquidity metrics like the quick ratio (0.91) could be stronger.

For a deeper analysis, review the full fundamental report on Celestica Inc.

Finding More Affordable Growth Stocks

Investors looking for similar opportunities can explore our Affordable Growth Stock Screener, which identifies stocks with strong growth, solid profitability, and reasonable valuations.