CELESTICA INC (CLS) Stock Fundamental Analysis
NYSE:CLS - New York Stock Exchange, Inc. - CA15101Q2071 - Common Stock - Currency: USD
Overall CLS gets a fundamental rating of 6 out of 10. We evaluated CLS against 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is valued quite expensive, but it does show an excellent growth. With these ratings, CLS could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS's Return On Assets of 8.63% is amongst the best of the industry. CLS outperforms 89.52% of its industry peers.
CLS has a Return On Equity of 30.63%. This is amongst the best in the industry. CLS outperforms 93.55% of its industry peers.
With an excellent Return On Invested Capital value of 19.07%, CLS belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is in line with the industry average of 9.67%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(19.07%), indicating increased profibility in the last year.
| 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 better Profit Margin (5.09%) than 70.16% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS has a better Operating Margin (6.56%) than 69.35% of its industry peers.
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: 76.61% 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
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.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
CLS has a worse debt/assets ratio than last year.
2.2 Solvency
CLS has an Altman-Z score of 5.16. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a better Altman-Z score (5.16) than 76.61% of its industry peers.
The Debt to FCF ratio of CLS is 2.27, which is a good value as it means it would take CLS, 2.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.27, CLS is doing good in the industry, outperforming 76.61% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
CLS has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: CLS underperforms 68.55% of its industry peers.
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 | 5.16 |
ROIC/WACC2.21
WACC8.65%
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 Current ratio of 1.44. This is in the lower half of the industry: CLS underperforms 75.00% of its industry peers.
CLS has a Quick Ratio of 1.44. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.86, CLS is doing worse than 83.87% of the companies in the same industry.
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.
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 20.52%.
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 30.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 18.86% on average per year.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y30.31%
Revenue Next Year13.73%
Revenue Next 2Y15.69%
Revenue Next 3Y16.45%
Revenue Next 5Y18.86%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.59, which means the current valuation is very expensive for CLS.
The rest of the industry has a similar Price/Earnings ratio as CLS.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (26.84), we can say CLS is valued slightly more expensively.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 31.42.
CLS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.94. CLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.59 | ||
| Fwd PE | 31.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLS.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.48 | ||
| EV/EBITDA | 25.45 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 22.07% in the coming years.
PEG (NY)1.63
PEG (5Y)0.8
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.9
-1.83 (-0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner Change-2.33%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap21.04B
Analysts82.67
Price Target168.3 (-7.98%)
Short Float %4.54%
Short Ratio1.42
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)67.26%
PT rev (3m)77.34%
EPS NQ rev (1m)12.31%
EPS NQ rev (3m)16.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)7.86%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.59 | ||
| Fwd PE | 31.42 | ||
| P/S | 1.99 | ||
| P/FCF | 54.48 | ||
| P/OCF | 38.32 | ||
| P/B | 11.97 | ||
| P/tB | 18.61 | ||
| EV/EBITDA | 25.45 |
EPS(TTM)4.74
EY2.59%
EPS(NY)5.82
Fwd EY3.18%
FCF(TTM)3.36
FCFY1.84%
OCF(TTM)4.77
OCFY2.61%
SpS92.05
BVpS15.28
TBVpS9.83
PEG (NY)1.63
PEG (5Y)0.8
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 | 5.16 |
F-Score7
WACC8.65%
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)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y30.31%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year13.73%
Revenue Next 2Y15.69%
Revenue Next 3Y16.45%
Revenue Next 5Y18.86%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5Y28.45%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%