Celestica Inc.
Celestica Inc. Fundamental Analysis
Celestica Inc. (CLS) shows moderate financial fundamentals with a PE ratio of 40.63, profit margin of 6.72%, and ROE of 44.13%. The company generates $12.4B in annual revenue with strong year-over-year growth of 21.17%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CLS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCLS demonstrates superior asset utilization.
Valuation Score
WeakCLS trades at a premium to fair value.
Growth Score
ExcellentCLS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCLS maintains a strong and stable balance sheet.
Profitability Score
ModerateCLS maintains healthy but balanced margins.
Key Financial Metrics
Is CLS Expensive or Cheap?
P/E Ratio
CLS trades at 40.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CLS's PEG of 2.36 indicates potential overvaluation.
Price to Book
The market values Celestica Inc. at 15.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.78 times EBITDA. This signals the market has high growth expectations.
How Well Does CLS Make Money?
Net Profit Margin
For every $100 in sales, Celestica Inc. keeps $6.72 as profit after all expenses.
Operating Margin
Core operations generate 7.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $44.13 in profit for every $100 of shareholder equity.
ROA
Celestica Inc. generates $11.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Celestica Inc. generates limited operating cash flow of $662.15M, signaling weaker underlying cash strength.
Free Cash Flow
Celestica Inc. produces free cash flow of $459.68M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.00 in free cash annually.
FCF Yield
CLS converts 1.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
15.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.44
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.29
vs 25 benchmark
How CLS Stacks Against Its Sector Peers
| Metric | CLS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.63 | 34.79 | Worse (Expensive) |
| ROE | 44.13% | 1185.00% | Weak |
| Net Margin | 6.72% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 0.43 | Neutral |
| Current Ratio | 1.44 | 4.90 | Neutral |
| ROA | 11.58% | -325472.00% (disorted) | Strong |
CLS outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Celestica Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.71%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
575.32%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
52.37%
Industry Style: Growth, Innovation, High Beta
High Growth