CELESTICA INC (CLS)
CA15101Q1081 - Common Stock
Taking everything into account, CLS scores 6 out of 10 in our fundamental rating. CLS was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has an excellent profitability rating, but there are some minor concerns on its financial health. CLS has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CLS (4.15%) is better than 65.87% of its industry peers.
The Return On Equity of CLS (13.83%) is better than 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.28%, CLS belongs to the top of the industry, outperforming 81.75% of the companies in the same industry.
CLS had an Average Return On Invested Capital over the past 3 years of 8.21%. This is in line with the industry average of 9.42%.
The 3 year average ROIC (8.21%) for CLS is below the current ROIC(11.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.83% | ||
| ROIC | 11.28% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
1.3 Margins
With a decent Profit Margin value of 3.07%, CLS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Profit Margin of CLS has grown nicely.
With a decent Operating Margin value of 5.00%, CLS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS has a worse Gross Margin (9.78%) than 78.57% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5% | ||
| PM (TTM) | 3.07% | ||
| GM | 9.78% |
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
2. Health
2.1 Basic Checks
CLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, CLS has less shares outstanding
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
The debt/assets ratio for CLS has been reduced compared to a year ago.
2.2 Solvency
CLS has an Altman-Z score of 2.40. This is not the best score and indicates that CLS is in the grey zone with still only limited risk for bankruptcy at the moment.
CLS's Altman-Z score of 2.40 is in line compared to the rest of the industry. CLS outperforms 43.65% of its industry peers.
CLS has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as CLS would need 2.57 years to pay back of all of its debts.
CLS has a better Debt to FCF ratio (2.57) than 69.84% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.41) is worse than 67.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.35
WACC8.35%
2.3 Liquidity
CLS has a Current Ratio of 1.40. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CLS (1.40) is worse than 79.37% of its industry peers.
A Quick Ratio of 0.75 indicates that CLS may have some problems paying its short term obligations.
The Quick ratio of CLS (0.75) is worse than 86.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.23%, which is quite impressive.
Measured over the past years, CLS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.61% on average per year.
The Revenue has grown by 9.81% in the past year. This is quite good.
CLS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)27.23%
EPS 3Y34.89%
EPS 5Y17.61%
EPS growth Q2Q35.71%
Revenue 1Y (TTM)9.81%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Revenue growth Q2Q4.79%
3.2 Future
Based on estimates for the next years, CLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.17% on average per year.
CLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.05% yearly.
EPS Next Y21.19%
EPS Next 2Y15.17%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.84%
Revenue Next 2Y9.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
With a Price/Earnings ratio of 16.84, CLS is valued correctly.
CLS's Price/Earnings ratio is a bit cheaper when compared to the industry. CLS is cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (24.80), we can say CLS is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.90, which indicates a correct valuation of CLS.
CLS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CLS is cheaper than 76.98% of the companies in the same industry.
CLS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 74.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 79.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
CLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 15.17% in the coming years.
PEG (NY)0.79
PEG (5Y)0.96
EPS Next 2Y15.17%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CELESTICA INC
NYSE:CLS (4/19/2024, 11:13:08 AM)
40.93
-2.88 (-6.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.88B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 13.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 13.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5% | ||
| PM (TTM) | 3.07% | ||
| GM | 9.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)27.23%
EPS 3Y34.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y21.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.81%
Revenue growth 3Y11.47%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
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