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 125 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent on profitability, 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!
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
Each year in the past 5 years CLS has been profitable.
In the past 5 years CLS always reported a positive cash flow from operatings.
1.2 Ratios
CLS has a better Return On Assets (7.24%) than 86.40% of its industry peers.
CLS has a better Return On Equity (27.13%) than 92.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.26%, CLS belongs to the top of the industry, outperforming 94.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 9.29%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(17.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROIC | 17.26% |
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
With a decent Profit Margin value of 4.19%, CLS is doing good in the industry, outperforming 69.60% of the companies in the same industry.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS has a Operating Margin of 5.94%. This is in the better half of the industry: CLS outperforms 69.60% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
CLS has a Gross Margin of 10.76%. This is in the lower half of the industry: CLS underperforms 76.00% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% |
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.
CLS has less shares outstanding than it did 1 year ago.
CLS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
CLS has an Altman-Z score of 4.08. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS's Altman-Z score of 4.08 is fine compared to the rest of the industry. CLS outperforms 69.60% of its industry peers.
CLS has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as CLS would need 3.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.08, CLS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
CLS has a Debt/Equity ratio of 0.59. This is a neutral value indicating CLS is somewhat dependend on debt financing.
The Debt to Equity ratio of CLS (0.59) is worse than 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 4.08 |
ROIC/WACC2.14
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.43 indicates that CLS should not have too much problems paying its short term obligations.
CLS has a Current ratio of 1.43. This is in the lower half of the industry: CLS underperforms 75.20% of its industry peers.
CLS has a Quick Ratio of 1.43. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CLS (0.85) is worse than 83.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.32% over the past year.
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 21.05%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.
EPS 1Y (TTM)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%-13.5%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
3.2 Future
The Earnings Per Share is expected to grow by 24.42% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 13.65% on average over the next years. This is quite good.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 29.09 indicates a quite expensive valuation of CLS.
The rest of the industry has a similar Price/Earnings ratio as CLS.
CLS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
CLS is valuated rather expensively with a Price/Forward Earnings ratio of 19.59.
Based on the Price/Forward Earnings ratio, CLS is valued a bit cheaper than the industry average as 63.20% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (21.94), we can say CLS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 19.59 |
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 | 43.08 | ||
| EV/EBITDA | 18.34 |
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)1.23
PEG (5Y)0.6
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
114.03
+1.37 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners80.27%
Inst Owner Change-0.73%
Ins Owners0.57%
Ins Owner Change25.26%
Market Cap13.18B
Analysts82.5
Price Target94.9 (-16.78%)
Short Float %3.08%
Short Ratio0.73
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.87%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)2.5%
Revenue beat(4)3
Avg Revenue beat(4)2.38%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)5.37%
Revenue beat(8)7
Avg Revenue beat(8)2.81%
Revenue beat(12)11
Avg Revenue beat(12)3.1%
Revenue beat(16)13
Avg Revenue beat(16)2.59%
PT rev (1m)-8.83%
PT rev (3m)23.1%
EPS NQ rev (1m)6.27%
EPS NQ rev (3m)5.93%
EPS NY rev (1m)0%
EPS NY rev (3m)7.46%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)3.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.09 | ||
| Fwd PE | 19.59 | ||
| P/S | 1.31 | ||
| P/FCF | 43.08 | ||
| P/OCF | 27.85 | ||
| P/B | 8.46 | ||
| P/tB | 14.34 | ||
| EV/EBITDA | 18.34 |
EPS(TTM)3.92
EY3.44%
EPS(NY)5.82
Fwd EY5.1%
FCF(TTM)2.65
FCFY2.32%
OCF(TTM)4.09
OCFY3.59%
SpS87.28
BVpS13.47
TBVpS7.95
PEG (NY)1.23
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.24% | ||
| ROE | 27.13% | ||
| ROCE | 21.53% | ||
| ROIC | 17.26% | ||
| ROICexc | 19.37% | ||
| ROICexgc | 26.09% | ||
| OM | 5.94% | ||
| PM (TTM) | 4.19% | ||
| GM | 10.76% | ||
| FCFM | 3.03% |
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-Score8
Asset Turnover1.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.08 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 114.76% | ||
| Cap/Sales | 1.66% | ||
| Interest Coverage | 11.11 | ||
| Cash Conversion | 63.55% | ||
| Profit Quality | 72.42% | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 4.08 |
F-Score8
WACC8.06%
ROIC/WACC2.14
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)61.32%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%-13.5%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue 1Y (TTM)21.05%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%19.91%
Revenue Next Year13.28%
Revenue Next 2Y15.04%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
EBIT growth 1Y32.3%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year42.55%
EBIT Next 3Y23.87%
EBIT Next 5YN/A
FCF growth 1Y46.22%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y41.27%
OCF growth 3Y27.84%
OCF growth 5Y6.55%