TSX:CLS

Stock Analysis Report

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Executive Summary

Celestica Inc. provides hardware platform and supply chain solutions in North America, Europe, and Asia. More Details

Rewards

Trading at 64.9% below our estimate of its fair value

Earnings are forecast to grow 119.05% per year

Risk Analysis

No risks detected for CLS from our risk checks.


Snowflake Analysis

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

1.2%

CLS

5.3%

CA Electronic

-0.6%

CA Market


1 Year Return

0.2%

CLS

0.02%

CA Electronic

-7.7%

CA Market

Return vs Industry: CLS matched the Canadian Electronic industry which returned 0% over the past year.

Return vs Market: CLS exceeded the Canadian Market which returned -7.7% over the past year.


Shareholder returns

CLSIndustryMarket
7 Day1.2%5.3%-0.6%
30 Day-7.2%-0.8%-1.1%
90 Day8.5%8.7%5.6%
1 Year0.2%0.2%0.05%0.02%-4.4%-7.7%
3 Year-36.7%-36.7%-26.2%-26.2%9.1%-1.5%
5 Year-43.0%-43.0%-29.6%-29.6%44.6%22.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLS (CA$9.6) is trading below our estimate of fair value (CA$27.33)

Significantly Below Fair Value: CLS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLS is unprofitable, so we can't compare its PE Ratio to the CA Electronic industry average.

PE vs Market: CLS is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CLS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLS is good value based on its PB Ratio (0.7x) compared to the CA Electronic industry average (5.3x).


Next Steps

Future Growth

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

119.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CLS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CLS's is expected to become profitable in the next 3 years.

Revenue vs Market: CLS's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: CLS's revenue is forecast to decline over the next 3 years (-1.7% 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?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLS is currently unprofitable.

Growing Profit Margin: CLS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLS is unprofitable, and losses have increased over the past 5 years at a rate of 4.6% per year.

Accelerating Growth: Unable to compare CLS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLS is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-18%).


Return on Equity

High ROE: CLS has a negative Return on Equity (-0.28%), as it is currently unprofitable.


Next Steps

Financial Health

How is Celestica's financial position?


Financial Position Analysis

Short Term Liabilities: CLS's short term assets ($2.9B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: CLS's short term assets ($2.9B) exceed its long term liabilities ($665.4M).


Debt to Equity History and Analysis

Debt Level: CLS's debt to equity ratio (33.3%) is considered satisfactory.

Reducing Debt: CLS's debt to equity ratio has increased from 25.2% to 33.3% over the past 5 years.

Debt Coverage: CLS's debt is well covered by operating cash flow (73%).

Interest Coverage: CLS is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Rob Mionis (57 yo)

5.08yrs

Tenure

US$9,356,766

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 ($USD9.36M) is above average for companies of similar size in the Canadian market ($USD1.32M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Mionis
President5.08yrsUS$9.36m0.45%
$ 5.6m
Mandeep Chawla
Chief Financial Officer3.33yrsUS$2.24m0.057%
$ 701.6k
Todd Cooper
Chief Operations Officer2.67yrsUS$2.25m0.10%
$ 1.3m
Jason Phillips
President of Connectivity & Cloud Solutions6.58yrsUS$2.24m0.030%
$ 372.4k
John Lawless
President of Advanced Technology Solutions4.92yrsUS$2.39m0.11%
$ 1.3m
Shlomo Bibas
Senior VP & Chief Information Officer1.67yrsno datano data
Elizabeth DelBianco
Chief Legal & Administrative Officer and Corporate Secretaryno dataUS$2.30m0.12%
$ 1.5m
Todd Melendy
Vice President of Sustainability & Complianceno datano datano data
Craig Oberg
Vice President of Investor Relations & Corporate Developmentno datano datano data
Rodney Bergman
Senior Vice President of Global Business Services6.67yrsno datano data
Jascha Ortmanns
SVP of Operations Business Partner for Connectivity and Cloud Solutionsno datano datano data
Robert Ellis
Senior Vice President of Legal1.67yrsno data0.0084%
$ 104.4k

4.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CLS's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Mionis
President5.08yrsUS$9.36m0.45%
$ 5.6m
Michael Wilson
Independent Chair of the Board0.67yrUS$275.00k0.015%
$ 192.0k
Laurette Koellner
Independent Director11.42yrsUS$285.00kno data
Robert Cascella
Independent Director1.58yrsUS$245.00kno data
Tawfiq Popatia
Director3.67yrsno datano data
Deepak Chopra
Independent Director2.42yrsUS$235.00kno data
Eamon Ryan
Independent Director11.92yrsUS$270.00k0.0021%
$ 26.5k
Daniel DiMaggio
Independent Director10.17yrsUS$245.00kno data
Carol Perry
Independent Director6.92yrsUS$255.00kno data

5.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CLS's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Celestica Inc.
  • Ticker: CLS
  • Exchange: TSX
  • Founded: 1994
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: CA$1.239b
  • Shares outstanding: 129.05m
  • 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 hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:08
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.