CELESTICA INC (CLS) Stock Fundamental Analysis
USA - NYSE:CLS - CA15101Q2071 - Common Stock
252.93 USD
+0.89 (+0.35%)
248.04 USD
-4.89 (-1.93%)
We assign a fundamental rating of 6 out of 10 to CLS. 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.
In the past 5 years CLS has always been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.63%, CLS belongs to the best of the industry, outperforming 89.52% of the companies in the same industry.
With an excellent Return On Equity value of 30.63%, CLS belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
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.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is in line with the industry average of 9.48%.
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 69.35% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
The Operating Margin of CLS (6.56%) is better than 68.55% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 11.36%, CLS is doing worse than 77.42% of the companies in the same industry.
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
CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CLS has less shares outstanding
Compared to 5 years ago, CLS has less shares outstanding
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.21 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a better Altman-Z score (6.21) than 77.42% 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.
CLS's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. CLS outperforms 75.81% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.48, CLS is not doing good in the industry: 69.35% of the companies in the same industry are doing better.
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 | 6.21 |
ROIC/WACC2.19
WACC8.72%
2.3 Liquidity
CLS has a Current Ratio of 1.44. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting 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.
The Quick ratio of CLS (0.86) is worse than 84.68% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has 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
The Earnings Per Share has grown by an impressive 49.06% over the past year.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 20.52%.
CLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
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
Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 30.31% on average per year.
CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.86% yearly.
EPS Next Y41.57%
EPS Next 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue Next Year19.55%
Revenue Next 2Y18.38%
Revenue Next 3Y18.53%
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.
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
Based on the Price/Earnings ratio of 53.36, the valuation of CLS can be described as expensive.
CLS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.38. CLS is valued rather expensively when compared to this.
CLS is valuated quite expensively with a Price/Forward Earnings ratio of 38.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.86. CLS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.36 | ||
| Fwd PE | 38.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS is on the same level as its industry peers.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.35 | ||
| EV/EBITDA | 34.6 |
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 26.30% in the coming years.
PEG (NY)1.28
PEG (5Y)1.11
EPS Next 2Y29.94%
EPS Next 3Y26.3%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
252.93
+0.89 (+0.35%)
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-2.25%
Ins Owners0.53%
Ins Owner Change0.07%
Market Cap29.09B
Analysts82.5
Price Target162.26 (-35.85%)
Short Float %4.38%
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)-3.58%
PT rev (3m)61.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.45%
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)0.05%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.36 | ||
| Fwd PE | 38.22 | ||
| P/S | 2.75 | ||
| P/FCF | 75.35 | ||
| P/OCF | 53.01 | ||
| P/B | 16.55 | ||
| P/tB | 25.74 | ||
| EV/EBITDA | 34.6 |
EPS(TTM)4.74
EY1.87%
EPS(NY)6.62
Fwd EY2.62%
FCF(TTM)3.36
FCFY1.33%
OCF(TTM)4.77
OCFY1.89%
SpS92.04
BVpS15.28
TBVpS9.83
PEG (NY)1.28
PEG (5Y)1.11
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 | 6.21 |
F-Score7
WACC8.72%
ROIC/WACC2.19
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 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year19.55%
Revenue Next 2Y18.38%
Revenue Next 3Y18.53%
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%