CELESTICA INC (CLS) Stock Fundamental Analysis
USA - NYSE:CLS - CA15101Q2071 - Common Stock
261.06 USD
+17.34 (+7.11%)
262.62 USD
+1.56 (+0.6%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is valued quite expensively, but it does show have an excellent growth rating. With these ratings, CLS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.63%, CLS belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
CLS has a better Return On Equity (30.63%) than 92.74% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.07%, CLS belongs to the top of the industry, outperforming 93.55% 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 above the industry average of 9.32%.
The last Return On Invested Capital (19.07%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
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
CLS has a Profit Margin of 5.09%. This is in the better half of the industry: CLS outperforms 68.55% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.56%, CLS is doing good in the industry, outperforming 68.55% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
With a Gross Margin value of 11.36%, CLS is not doing good in the industry: 77.42% of the companies in the same industry are doing better.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
CLS has an Altman-Z score of 6.07. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a better Altman-Z score (6.07) than 78.23% of its industry peers.
CLS has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as CLS would need 2.27 years to pay back of all of its debts.
CLS has a better Debt to FCF ratio (2.27) than 75.81% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, CLS is doing worse than 69.35% of the companies in the same industry.
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 | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 6.07 |
ROIC/WACC2.24
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CLS should not have too much problems paying its short term obligations.
CLS has a worse Current ratio (1.44) than 77.42% of its industry peers.
A Quick Ratio of 0.86 indicates that CLS may have some problems paying its short term obligations.
CLS's Quick ratio of 0.86 is on the low side compared to the rest of the industry. CLS is outperformed by 84.68% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have 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 | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.06%, which is quite impressive.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
The Revenue has grown by 20.52% in the past year. This is a very strong growth!
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
3.2 Future
The Earnings Per Share is expected to grow by 36.74% on average over the next years. This is a very strong growth
CLS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.31% yearly.
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
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
With a Price/Earnings ratio of 55.08, CLS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
CLS is valuated expensively when we compare the Price/Earnings ratio to 27.35, which is the current average of the S&P500 Index.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 39.39.
CLS's Price/Forward Earnings ratio is in line with the industry average.
CLS is valuated expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.08 | ||
| Fwd PE | 39.39 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA is on the same level as the industry average.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.78 | ||
| EV/EBITDA | 33.37 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 27.45% in the coming years.
PEG (NY)1.32
PEG (5Y)1.14
EPS Next 2Y30.03%
EPS Next 3Y27.45%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
261.06
+17.34 (+7.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.85%
Inst Owner Change-0.35%
Ins Owners0.52%
Ins Owner Change-0.24%
Market Cap30.03B
Analysts81.25
Price Target161.12 (-38.28%)
Short Float %4.37%
Short Ratio1.4
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)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)-0.46%
PT rev (3m)60.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.31%
EPS NY rev (1m)0%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.08 | ||
| Fwd PE | 39.39 | ||
| P/S | 2.84 | ||
| P/FCF | 77.78 | ||
| P/OCF | 54.71 | ||
| P/B | 17.08 | ||
| P/tB | 26.57 | ||
| EV/EBITDA | 33.37 |
EPS(TTM)4.74
EY1.82%
EPS(NY)6.63
Fwd EY2.54%
FCF(TTM)3.36
FCFY1.29%
OCF(TTM)4.77
OCFY1.83%
SpS92.04
BVpS15.28
TBVpS9.83
PEG (NY)1.32
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
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-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 6.07 |
F-Score7
WACC8.5%
ROIC/WACC2.24
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)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y41.57%
EPS Next 2Y30.03%
EPS Next 3Y27.45%
EPS Next 5Y36.74%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year19.55%
Revenue Next 2Y19.46%
Revenue Next 3Y19.38%
Revenue Next 5Y24.31%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y34.86%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%