CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
332.24 USD
+4.49 (+1.37%)
333.63 USD
+1.39 (+0.42%)
CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 123 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make CLS a good candidate 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.
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
CLS has a better Return On Assets (10.85%) than 90.24% of its industry peers.
CLS has a Return On Equity of 35.33%. This is amongst the best in the industry. CLS outperforms 94.31% of its industry peers.
CLS has a better Return On Invested Capital (21.33%) than 95.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 9.11%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
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 6.35%. This is in the better half of the industry: CLS outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS has a Operating Margin of 7.33%. This is in the better half of the industry: CLS outperforms 70.73% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
With a Gross Margin value of 12.04%, CLS is not doing good in the industry: 76.42% 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 | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
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.
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
CLS has an Altman-Z score of 7.46. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
CLS has a better Altman-Z score (7.46) than 85.37% of its industry peers.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
CLS's Debt to FCF ratio of 1.97 is fine compared to the rest of the industry. CLS outperforms 77.24% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CLS (0.37) is worse than 63.41% 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 | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 7.46 |
ROIC/WACC2.56
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
The Current ratio of CLS (1.47) is worse than 76.42% of its industry peers.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, CLS is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
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 | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.90% 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 22.09%.
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)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 27.74% on average per year.
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
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.
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
Based on the Price/Earnings ratio of 62.92, the valuation of CLS can be described as expensive.
CLS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (26.15), we can say CLS is valued expensively.
A Price/Forward Earnings ratio of 39.86 indicates a quite expensive valuation of CLS.
CLS's Price/Forward Earnings ratio is in line with the industry average.
CLS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.92 | ||
| Fwd PE | 39.86 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is in line with the industry average.
CLS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 95.98 | ||
| EV/EBITDA | 39.11 |
4.3 Compensation for Growth
CLS's 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 44.54% in the coming years.
PEG (NY)1.27
PEG (5Y)1.31
EPS Next 2Y45.82%
EPS Next 3Y44.54%
5. Dividend
5.1 Amount
CLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
332.24
+4.49 (+1.37%)
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-5.33%
Ins Owners0.52%
Ins Owner Change0.42%
Market Cap38.22B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target248.47 (-25.21%)
Short Float %2.96%
Short Ratio1.13
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)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)54.21%
PT rev (3m)53.5%
EPS NQ rev (1m)18.75%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)5.77%
EPS NY rev (3m)5.77%
Revenue NQ rev (1m)14.35%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)4.1%
Revenue NY rev (3m)4.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.92 | ||
| Fwd PE | 39.86 | ||
| P/S | 3.39 | ||
| P/FCF | 95.98 | ||
| P/OCF | 69.2 | ||
| P/B | 18.84 | ||
| P/tB | 27.06 | ||
| EV/EBITDA | 39.11 |
EPS(TTM)5.28
EY1.59%
EPS(NY)8.34
Fwd EY2.51%
FCF(TTM)3.46
FCFY1.04%
OCF(TTM)4.8
OCFY1.45%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.27
PEG (5Y)1.31
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
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%
ROICexgc growth 3Y31.4%
ROICexgc 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 Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 7.46 |
F-Score7
WACC8.35%
ROIC/WACC2.56
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)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y49.74%
EPS Next 2Y45.82%
EPS Next 3Y44.54%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year24.45%
Revenue Next 2Y28.03%
Revenue Next 3Y29.6%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year58.36%
EBIT Next 3Y30.72%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status for CLS stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
How profitable is CELESTICA INC (CLS) stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.
Can you provide the expected EPS growth for CLS stock?
The Earnings per Share (EPS) of CELESTICA INC (CLS) is expected to grow by 49.74% in the next year.