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Celestica

TSX:CLS
Snowflake Description

Very undervalued with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CLS
TSX
CA$2B
Market Cap
  1. Home
  2. CA
  3. Tech
Company description

Celestica Inc. provides design, manufacturing, hardware platform, and supply chain solutions in Canada and internationally. The last earnings update was 43 days ago. More info.


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CLS Share Price and Events
7 Day Returns
-1.4%
TSX:CLS
-0.6%
CA Electronic
0.6%
CA Market
1 Year Returns
-13.7%
TSX:CLS
-6.7%
CA Electronic
3.4%
CA Market
CLS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Celestica (CLS) -1.4% 2.5% -4.4% -13.7% -14% -4.3%
CA Electronic -0.6% 2.9% 5.2% -6.7% 0% 4.5%
CA Market 0.6% 2.7% 8.3% 3.4% 15.7% 7.1%
1 Year Return vs Industry and Market
  • CLS underperformed the Electronic industry which returned -6.7% over the past year.
  • CLS underperformed the Market in Canada which returned 3.4% over the past year.
Price Volatility
CLS
Industry
5yr Volatility vs Market

CLS Value

 Is Celestica undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Celestica to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Celestica.

TSX:CLS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CLS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.727 (1 + (1- 26.5%) (66.5%))
1.055
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.055 * 5.96%)
8.24%

Discounted Cash Flow Calculation for TSX:CLS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Celestica is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CLS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.24%)
2019 143.13 Analyst x3 132.24
2020 181.18 Analyst x4 154.65
2021 211.92 Est @ 16.97% 167.14
2022 238.34 Est @ 12.46% 173.67
2023 260.53 Est @ 9.31% 175.39
2024 279.03 Est @ 7.1% 173.55
2025 294.53 Est @ 5.55% 169.26
2026 307.70 Est @ 4.47% 163.37
2027 319.13 Est @ 3.71% 156.55
2028 329.29 Est @ 3.18% 149.24
Present value of next 10 years cash flows $1,615.07
TSX:CLS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $329.29 × (1 + 1.95%) ÷ (8.24% – 1.95%)
$5,338.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,338.59 ÷ (1 + 8.24%)10
$2,419.59
TSX:CLS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,615.07 + $2,419.59
$4,034.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,034.66 / 131.61
$30.66
TSX:CLS Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:CLS)
1.342
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $30.66 x 1.342
CA$41.14
Value per share (CAD) From above. CA$41.14
Current discount Discount to share price of CA$11.69
= -1 x (CA$11.69 - CA$41.14) / CA$41.14
71.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Celestica is available for.
Intrinsic value
>50%
Share price is CA$11.69 vs Future cash flow value of CA$41.14
Current Discount Checks
For Celestica to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Celestica's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Celestica's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Celestica's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Celestica's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CLS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.71
TSX:CLS Share Price ** TSX (2019-04-23) in CAD CA$11.69
TSX:CLS Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.745 $8.71
Canada Electronic Industry PE Ratio Median Figure of 6 Publicly-Listed Electronic Companies 16.5x
Canada Market PE Ratio Median Figure of 557 Publicly-Listed Companies 14.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Celestica.

TSX:CLS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CLS Share Price ÷ EPS (both in USD)

= 8.71 ÷ 0.71

12.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Celestica is good value based on earnings compared to the CA Electronic industry average.
  • Celestica is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Celestica's expected growth come at a high price?
Raw Data
TSX:CLS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
17.9%per year
North America Electronic Industry PEG Ratio Median Figure of 62 Publicly-Listed Electronic Companies 1.45x
Canada Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:CLS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.28x ÷ 17.9%

0.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Celestica is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Celestica's assets?
Raw Data
TSX:CLS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.77
TSX:CLS Share Price * TSX (2019-04-23) in CAD CA$11.69
TSX:CLS Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.745 $8.71
Canada Electronic Industry PB Ratio Median Figure of 20 Publicly-Listed Electronic Companies 2.18x
Canada Market PB Ratio Median Figure of 2,380 Publicly-Listed Companies 1.51x
TSX:CLS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CLS Share Price ÷ Book Value per Share (both in USD)

= 8.71 ÷ 9.77

0.89x

* Primary Listing of Celestica.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Celestica is good value based on assets compared to the CA Electronic industry average.
X
Value checks
We assess Celestica's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Celestica has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CLS Future Performance

 How is Celestica expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Celestica expected to grow at an attractive rate?
  • Celestica's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Celestica's earnings growth is positive but not above the Canada market average.
  • Celestica's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CLS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CLS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 17.9%
TSX:CLS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -0.5%
Canada Electronic Industry Earnings Growth Rate Market Cap Weighted Average 13.7%
Canada Electronic Industry Revenue Growth Rate Market Cap Weighted Average 6.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 18.2%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CLS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CLS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,818 1
2020-12-31 6,494 256 141 10
2019-12-31 6,374 210 66 11
TSX:CLS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 6,633 33 99
2018-09-30 6,444 79 52
2018-06-30 6,266 16 78
2018-03-31 6,128 86 97
2017-12-31 6,143 127 106
2017-09-30 6,196 171 113
2017-06-30 6,217 287 132
2017-03-31 6,145 227 133
2017-01-01 6,047 173 138
2016-09-30 5,908 178 128
2016-06-30 5,762 94 85
2016-03-31 5,694 143 73

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Celestica's earnings are expected to grow by 17.9% yearly, however this is not considered high growth (20% yearly).
  • Celestica's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CLS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Celestica Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CLS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 1.01 1.25 0.85 5.00
2019-12-31 0.48 0.64 0.37 5.00
TSX:CLS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.71
2018-09-30 0.37
2018-06-30 0.55
2018-03-31 0.67
2017-12-31 0.74
2017-09-30 0.79
2017-06-30 0.93
2017-03-31 0.94
2017-01-01 0.98
2016-09-30 0.90
2016-06-30 0.59
2016-03-31 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Celestica is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Celestica's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Celestica has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CLS Past Performance

  How has Celestica performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Celestica's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Celestica's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Celestica's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Celestica's 1-year earnings growth is negative, it can't be compared to the CA Electronic industry average.
Earnings and Revenue History
Celestica's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Celestica Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CLS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 6,633.20 98.90 219.00 28.80
2018-09-30 6,444.20 51.90 211.00 27.60
2018-06-30 6,265.70 78.10 204.60 26.60
2018-03-31 6,128.10 96.60 201.80 26.40
2017-12-31 6,142.70 105.50 202.70 26.20
2017-09-30 6,196.20 112.80 204.80 26.00
2017-06-30 6,217.40 131.60 208.30 25.60
2017-03-31 6,145.30 133.20 212.80 25.30
2017-01-01 6,046.60 138.30 211.10 24.90
2016-09-30 5,907.70 127.50 209.70 24.70
2016-06-30 5,762.20 84.80 208.40 23.50
2016-03-31 5,694.00 72.80 204.10 22.40
2015-12-31 5,639.20 66.90 207.50 23.20
2015-09-30 5,548.60 50.40 208.60 21.70
2015-06-30 5,563.20 73.90 207.20 21.60
2015-03-31 5,617.40 90.60 210.70 22.00
2014-12-31 5,631.30 108.20 210.30 19.70
2014-09-30 5,643.70 134.70 213.60 20.20
2014-06-30 5,712.50 157.70 221.60 19.20
2014-03-31 5,736.10 144.80 220.60 18.10
2013-12-31 5,796.10 118.00 222.30 17.40
2013-09-30 5,855.60 103.10 220.80 15.60
2013-06-30 5,939.10 89.40 226.40 15.70
2013-03-31 6,188.70 85.00 233.70 15.20
2012-12-31 6,507.20 117.70 237.00 15.20
2012-09-30 6,764.40 179.70 240.80 16.20
2012-06-30 7,019.10 186.20 240.30 15.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Celestica has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Celestica used its assets less efficiently than the CA Electronic industry average last year based on Return on Assets.
  • Celestica's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Celestica's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Celestica has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CLS Health

 How is Celestica's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Celestica's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Celestica is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Celestica's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Celestica's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Celestica Company Filings, last reported 3 months ago.

TSX:CLS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,332.30 762.30 422.00
2018-09-30 1,288.60 411.60 457.70
2018-06-30 1,290.40 355.40 401.40
2018-03-31 1,355.70 187.10 435.70
2017-12-31 1,370.20 204.40 515.20
2017-09-30 1,357.50 212.10 527.00
2017-06-30 1,321.70 219.70 582.70
2017-03-31 1,273.70 227.30 558.00
2017-01-01 1,257.80 244.70 557.20
2016-09-30 1,211.30 273.80 542.00
2016-06-30 1,162.10 295.80 472.90
2016-03-31 1,117.90 312.50 511.50
2015-12-31 1,091.00 279.70 545.30
2015-09-30 1,086.30 284.00 495.70
2015-06-30 1,088.50 281.40 496.80
2015-03-31 1,401.30 0.00 569.20
2014-12-31 1,394.90 0.00 565.00
2014-09-30 1,459.60 0.00 578.20
2014-06-30 1,468.60 0.00 519.10
2014-03-31 1,425.10 0.00 489.20
2013-12-31 1,402.00 0.00 544.30
2013-09-30 1,401.20 0.00 546.80
2013-06-30 1,359.90 0.00 553.50
2013-03-31 1,344.40 20.00 531.30
2012-12-31 1,322.70 55.00 550.50
2012-09-30 1,508.90 0.00 598.20
2012-06-30 1,460.40 0.00 630.60
  • Celestica's level of debt (57.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 57.2% today).
  • Debt is not well covered by operating cash flow (4.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.9x coverage).
X
Financial health checks
We assess Celestica's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Celestica has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CLS Dividends

 What is Celestica's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Celestica dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Celestica shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Celestica's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Celestica's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CLS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
North America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 39 Stocks 1.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CLS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Celestica has not reported any payouts.
  • Unable to verify if Celestica's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Celestica's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Celestica has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Celestica's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Celestica's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Celestica afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Celestica has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CLS Management

 What is the CEO of Celestica's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Mionis
COMPENSATION $10,236,302
AGE 55
TENURE AS CEO 3.7 years
CEO Bio

Mr. Robert Andrew Mionis, also known as Rob, has been Chief Executive Officer and President at Celestica Inc. since August 1, 2015. Mr. Mionis serves as the Chief Executive Officer of DAE Manufacturing and DAE Engineering at Dubai Aerospace Enterprise. Mr. Mionis was a Senior Advisor at Pamplona Capital Management LLP, Private Equity. He was previously an Operating Partner at the firm. He oversaw the launch, growth and operations of DAE Manufacturing and DAE Engineering on a global basis, providing leadership for the overall strategic direction and leading improvements in competitiveness, quality and profitability for all areas of the business. At Pamplona, he drived new investment opportunities within Industrials and Aerospace and support some of Pamplona’s portfolio companies. He was an Operating Partner at Pamplona Capital Management. Mr. Mionis served as the President and Chief Executive Officer of StandardAero Business Aviation Services, LLC for six years from October 2008 to March 2013. He has over 25 years of diverse experience in manufacturing and engineering leadership roles. He has 28 years of business and operating experience. He served as the Senior Vice President of Worldwide Operations at Axcelis Technologies Inc., since July 2000 and served as its Director of Worldwide Operations since March 1999, Global Operations Director for Axcelis Technologies implant systems operations since May 1998 and its General Manager for Global Operations and Service Solutions. Prior to joining Axcelis, Mr. Mionis served in a number of positions at AlliedSignal Aerospace Communication Sensor Systems, since October 1994 which is a diversified industrial manufacturer of automotive, aerospace and engineered material products, in a variety of leadership positions including Director of Operations for Communication and Sensor Systems, where he led the implementation of Lean Manufacturing and oversaw Operational Excellence and Six Sigma. Prior to Honeywell, Mr. Mionis held a progressively senior leadership role with General Electric (GE). He served as a Vice President of Integrated Supply Chain for Honeywell Aerospace. Before joining Honeywell, he gained experience as Vice President of ISC for Aerospace Electronic Systems. He served as Director of Operations of AlliedSignal Corporation. Prior to that, he served with GE Aerospace in various management positions in the Manufacturing Management Program, holding positions of progressive responsibility over nine years at several GE businesses. Mr. Mionis has been Director at Celestica Inc. since August 1, 2015. He serves as a Director of General Aviation Manufacturers Association. He served as Independent Director of Innovative Solutions & Support Inc. from July 2010 to July 31, 2015. He serves on the Board of Advisors for the University of San Diego Supply Chain Institute. Mr. Mionis serves as a Board of Directors at Shawcor Ltd. Mr. Mionis holds Bachelor's degree in Electrical Engineering from University of Massachusetts.

CEO Compensation
  • Rob's compensation has increased by more than 20% in the past year.
  • Rob's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Celestica management team in years:

1.6
Average Tenure
55.5
Average Age
  • The average tenure for the Celestica management team is less than 2 years, this suggests a new team.
Management Team

Rob Mionis

TITLE
President
COMPENSATION
$10M
AGE
55
TENURE
3.7 yrs

Mandeep Chawla

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
41
TENURE
1.9 yrs

Todd Cooper

TITLE
Chief Operations Officer
COMPENSATION
$3M
AGE
48
TENURE
1.3 yrs

Mike McCaughey

TITLE
COMPENSATION
$3M
AGE
56
TENURE
0.3 yrs

Jack Lawless

TITLE
President of Advanced Technology Solutions
COMPENSATION
$3M
AGE
57
TENURE
3.5 yrs

Shlomo Bibas

TITLE
Senior VP & Chief Information Officer
TENURE
0.3 yrs

Betty DelBianco

TITLE
Chief Legal & Administrative Officer
COMPENSATION
$2M
AGE
58

Paul Carpino

TITLE
Vice President of Investor Relations

Todd Melendy

TITLE
Vice President of Sustainability & Compliance

Curtis Cheam

TITLE
Corporate Development Manager
Board of Directors Tenure

Average tenure and age of the Celestica board of directors in years:

6.3
Average Tenure
65
Average Age
  • The tenure for the Celestica board of directors is about average.
Board of Directors

Bill Etherington

TITLE
Chair of the Board
COMPENSATION
$360K
AGE
77
TENURE
7 yrs

Rob Mionis

TITLE
President
COMPENSATION
$10M
AGE
55
TENURE
3.7 yrs

Eamon Ryan

TITLE
Independent Director
COMPENSATION
$250K
AGE
72
TENURE
10.5 yrs

Laurette Koellner

TITLE
Independent Director
COMPENSATION
$265K
AGE
63
TENURE
10 yrs

Dan DiMaggio

TITLE
Independent Director
COMPENSATION
$245K
AGE
67
TENURE
8.8 yrs

Mike Wilson

TITLE
Independent Director
COMPENSATION
$245K
AGE
66
TENURE
7.4 yrs

Carol Perry

TITLE
Independent Director
COMPENSATION
$235K
AGE
67
TENURE
5.5 yrs

Tawfiq Popatia

TITLE
Director
AGE
43
TENURE
2.3 yrs

Deepak Chopra

TITLE
Director
COMPENSATION
$176K
AGE
54
TENURE
1 yrs

Rob Cascella

TITLE
Independent Director
AGE
64
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Celestica insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
18. Mar 19 Sell Jason Phillips Individual 15. Mar 19 15. Mar 19 -4,650 CA$11.84 CA$-55,063
15. Feb 19 Sell Jason Phillips Individual 15. Feb 19 15. Feb 19 -16,260 CA$11.92 CA$-193,873
13. Aug 18 Sell John Lawless Individual 10. Aug 18 10. Aug 18 -7,400 CA$16.08 CA$-119,011
07. Aug 18 Sell Elizabeth DelBianco Individual 07. Aug 18 07. Aug 18 -29,000 CA$15.67 CA$-454,488
09. May 18 Sell Elizabeth DelBianco Individual 09. May 18 09. May 18 -32,680 CA$15.30 CA$-499,079
X
Management checks
We assess Celestica's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Celestica has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CLS News

Simply Wall St News

Why We’re Not Impressed By Celestica Inc.’s (TSE:CLS) 8.0% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed?

Simply Wall St -

Celestica Inc. (TSE:CLS) Delivered A Weaker ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Celestica has a return on equity of 7.4% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Do Directors Own Celestica Inc. (TSE:CLS) Shares?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Companies that have been privatized tend to have low insider ownership. … With a market capitalization of CA$1.6b, Celestica is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

The Celestica Share Price Is Up 14% And Shareholders Are Holding On

(TSE:CLS) has fallen short of that second goal, with a share price rise of 14% over five years, which is below the market return. … During five years of share price growth, Celestica achieved compound earnings per share (EPS) growth of 2.0% per year. … This EPS growth is slower than the share price growth of 2.7% per year, over the same period.

Simply Wall St -

How Financially Strong Is Celestica Inc. (TSE:CLS)?

Help shape the future of investing tools and you could win a $250 gift card! … Investors are always looking for growth in small-cap stocks like Celestica Inc. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

An Intrinsic Calculation For Celestica Inc. (TSE:CLS) Shows It's 47.22% Undervalued

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Celestica Inc.'s (TSE:CLS) CEO Paid Enough Relative To Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Rob Mionis's Compensation Compare With Similar Sized Companies. … has a market capitalization of CA$1.6b, and pays its CEO total annual compensation worth US$8.2m.

Simply Wall St -

How Do Celestica Inc.’s (TSE:CLS) Returns Compare To Its Industry?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … How Do You Calculate Return On Capital Employed

Simply Wall St -

Have Insiders Been Selling Celestica Inc. (TSE:CLS) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Celestica Inc. … Celestica Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Celestica shares, than buying

Simply Wall St -

Here's What Celestica Inc's (TSE:CLS) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 27.18 = $10 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.37

Simply Wall St -

CLS Company Info

Description

Celestica Inc. provides design, manufacturing, hardware platform, and supply chain solutions in Canada and internationally. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing, assembly and test, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It serves the aerospace and defense, industrial, smart energy, healthtech, capital equipment, enterprise communications, telecommunications, servers, and storage businesses. The company was incorporated in 1996 and is headquartered in Toronto, Canada.

Details
Name: Celestica Inc.
CLS
Exchange: TSX
Founded: 1996
CA$1,538,551,364
131,612,606
Website: http://www.celestica.com
Address: Celestica Inc.
844 Don Mills Road,
Toronto,
Ontario, M3C 1V7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CLS Subordinate Voting Shares The Toronto Stock Exchange CA CAD 30. Jun 1998
NYSE CLS Subordinate Voting Shares New York Stock Exchange US USD 30. Jun 1998
DB CTW Subordinate Voting Shares Deutsche Boerse AG DE EUR 30. Jun 1998
Number of employees
Current staff
Staff numbers
23,600
Celestica employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:33
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/03/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.