TSX:CLS

Stock Analysis Report

Executive Summary

Celestica Inc. provides design, manufacturing, hardware platform, and supply chain solutions in Canada and internationally.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Celestica's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.8%

CLS

1.3%

CA Electronic

0.8%

CA Market


1 Year Return

-18.2%

CLS

-6.6%

CA Electronic

7.2%

CA Market

Return vs Industry: CLS underperformed the Canadian Electronic industry which returned -6.6% over the past year.

Return vs Market: CLS underperformed the Canadian Market which returned 7.2% over the past year.


Shareholder returns

CLSIndustryMarket
7 Day4.8%1.3%0.8%
30 Day21.1%13.2%2.8%
90 Day23.3%4.6%4.6%
1 Year-18.2%-18.2%-3.7%-6.6%10.8%7.2%
3 Year-36.7%-36.7%-9.7%-16.0%18.7%8.1%
5 Year-14.1%-14.1%9.8%-2.7%26.9%8.3%

Price Volatility Vs. Market

How volatile is Celestica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Celestica undervalued compared to its fair value and its price relative to the market?

7.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLS (CA$10.68) is trading above our estimate of fair value (CA$8.61)

Significantly Below Fair Value: CLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CLS is good value based on its PE Ratio (7.8x) compared to the Electronic industry average (15.8x).

PE vs Market: CLS is good value based on its PE Ratio (7.8x) compared to the Canadian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: CLS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CLS is good value based on its PB Ratio (0.8x) compared to the CA Electronic industry average (2.6x).


Next Steps

Future Growth

How is Celestica forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLS's earnings are forecast to decline over the next 3 years (-17.3% per year).

Earnings vs Market: CLS's earnings are forecast to decline over the next 3 years (-17.3% per year).

High Growth Earnings: CLS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CLS's revenue is expected to decline over the next 3 years (-5.7% per year).

High Growth Revenue: CLS's revenue is forecast to decline over the next 3 years (-5.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CLS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Celestica performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLS has large one-off items impacting its financial results.

Growing Profit Margin: CLS's current net profit margins (2.2%) are higher than last year (0.8%).


Past Earnings Growth Analysis

Earnings Trend: CLS's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: CLS's earnings growth over the past year (162.2%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: CLS earnings growth over the past year (162.2%) underperformed the Electronic industry 162.2%.


Return on Equity

High ROE: CLS's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Celestica's financial position?


Financial Position Analysis

Short Term Liabilities: CLS's short term assets ($2.6B) exceeds its short term liabilities ($2.0B)

Long Term Liabilities: CLS's short term assets (2.6B) exceeds its long term liabilities (221.0M)


Debt to Equity History and Analysis

Debt Level: CLS's debt to equity ratio (36.1%) is considered satisfactory

Reducing Debt: Insufficient data to determine if CLS's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CLS's debt is well covered by operating cash flow (54.1%).

Interest Coverage: CLS's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: CLS has a high level of physical assets or inventory.

Debt Coverage by Assets: CLS's debt is covered by short term assets (assets are 5.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CLS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CLS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CLS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CLS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLS's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Rob Mionis (56yo)

4.3yrs

Tenure

US$10,236,302

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD10.24M) is above average for companies of similar size in the Canadian market ($USD1.58M).

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CLS's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: CLS's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$55,06318 Mar 19
Jason Phillips
EntityIndividual
Shares4,650
Max PriceUS$11.84
SellUS$193,87315 Feb 19
Jason Phillips
EntityIndividual
Shares16,260
Max PriceUS$11.92

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Betty DelBianco (59yo)

    Chief Legal & Administrative Officer

    • Tenure: 0yrs
    • Compensation: US$2.30m
  • Rob Mionis (56yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$10.24m
  • Mike McCaughey (57yo)

    • Tenure: 0.8yrs
    • Compensation: US$2.54m
  • Paul Carpino

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jack Lawless (58yo)

    President of Advanced Technology Solutions

    • Tenure: 4.1yrs
    • Compensation: US$2.52m
  • Todd Cooper (49yo)

    Chief Operations Officer

    • Tenure: 1.8yrs
    • Compensation: US$2.59m
  • Todd Melendy

    Vice President of Sustainability & Compliance

    • Tenure: 0yrs
  • Curtis Cheam

    Corporate Development Manager

    • Tenure: 0yrs
  • Mandeep Chawla (42yo)

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.27m
  • Shlomo Bibas

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Bill Etherington (78yo)

    Chair of the Board

    • Tenure: 7.6yrs
    • Compensation: US$360.00k
  • Rob Mionis (56yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$10.24m
  • Mike Wilson (67yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$245.00k
  • Laurette Koellner (64yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$265.00k
  • Rob Cascella (65yo)

    Independent Director

    • Tenure: 0.8yrs
  • Tawfiq Popatia (44yo)

    Director

    • Tenure: 2.8yrs
  • Deepak Chopra (56yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$176.25k
  • Eamon Ryan (73yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: US$250.00k
  • Dan DiMaggio (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$245.00k
  • Carol Perry (68yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$235.00k

Company Information

Celestica Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Celestica Inc.
  • Ticker: CLS
  • Exchange: TSX
  • Founded: 1996
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: CA$1.372b
  • Shares outstanding: 128.42m
  • Website: https://www.celestica.com

Number of Employees


Location

  • Celestica Inc.
  • 5140 Yonge Street
  • Suite 1900
  • Toronto
  • Ontario
  • M2N 6L7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLSTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJun 1998
CLSNYSE (New York Stock Exchange)YesSubordinate Voting SharesUSUSDJun 1998
CTWDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJun 1998

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:33
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.