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CLS

CelesticaTSX:CLS Stock Report

Market Cap

CA$1.7b

7D

-2.3%

1Y

27.8%

Updated

03 Dec, 2021

Data

Company Financials +
CLS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends0/6

CLS Stock Overview

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

Celestica Competitors

Hon Hai Precision Industry

TWSE:2317

NT$1.5t

Teledyne Technologies

NYSE:TDY

US$19.4b

TDK

TSE:6762

JP¥1.7t

Arrow Electronics

NYSE:ARW

US$8.5b

Price History & Performance

Summary of all time highs, changes and price drops for Celestica
Historical stock prices
Current Share PriceCA$13.52
52 Week HighCA$14.87
52 Week LowCA$8.94
Beta2.59
1 Month Change2.89%
3 Month Change15.75%
1 Year Change27.79%
3 Year Change4.97%
5 Year Change-16.44%
Change since IPO-2.56%

Recent News & Updates

Sep 21
Here's Why Celestica (TSE:CLS) Can Manage Its Debt Responsibly

Here's Why Celestica (TSE:CLS) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

CLSCA ElectronicCA Market
7D-2.3%-7.7%-2.2%
1Y27.8%8.5%18.5%

Return vs Industry: CLS exceeded the Canadian Electronic industry which returned 13.4% over the past year.

Return vs Market: CLS exceeded the Canadian Market which returned 20.3% over the past year.

Price Volatility

Is CLS's price volatile compared to industry and market?
CLS volatility
CLS Average Weekly Movement6.9%
Electronic Industry Average Movement10.9%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.6%

Stable Share Price: CLS is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CLS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199418,226Rob Mionishttps://www.celestica.com

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. The company offers a range of product manufacturing and related supply chain services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services.

Celestica Fundamentals Summary

How do Celestica's earnings and revenue compare to its market cap?
CLS fundamental statistics
Market CapUS$1.30b
Earnings (TTM)US$92.10m
Revenue (TTM)US$5.51b

14.3x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLS income statement (TTM)
RevenueUS$5.51b
Cost of RevenueUS$5.06b
Gross ProfitUS$446.70m
ExpensesUS$354.60m
EarningsUS$92.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.74
Gross Margin8.11%
Net Profit Margin1.67%
Debt/Equity Ratio30.3%

How did CLS perform over the long term?

See historical performance and comparison

Valuation

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

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLS (CA$13.52) is trading below our estimate of fair value (CA$26.48)

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


Price To Earnings Ratio

PE vs Industry: CLS is good value based on its PE Ratio (14.3x) compared to the North American Electronic industry average (17.6x).

PE vs Market: CLS is poor value based on its PE Ratio (14.3x) compared to the Canadian market (12x).


Price to Earnings Growth Ratio

PEG Ratio: CLS is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CLS is good value based on its PB Ratio (0.9x) compared to the CA Electronic industry average (3.9x).


Future Growth

How is Celestica forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

39.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLS's forecast earnings growth (39.7% per year) is above the savings rate (1.6%).

Earnings vs Market: CLS's earnings (39.7% per year) are forecast to grow faster than the Canadian market (10.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CLS's revenue (10% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: CLS's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLS's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has Celestica performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLS has high quality earnings.

Growing Profit Margin: CLS's current net profit margins (1.7%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: CLS's earnings have declined by 17% per year over the past 5 years.

Accelerating Growth: CLS's earnings growth over the past year (174.9%) exceeds its 5-year average (-17% per year).

Earnings vs Industry: CLS earnings growth over the past year (174.9%) exceeded the Electronic industry 51.2%.


Return on Equity

High ROE: CLS's Return on Equity (6.3%) is considered low.


Financial Health

How is Celestica's financial position?


Financial Position Analysis

Short Term Liabilities: CLS's short term assets ($3.1B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: CLS's short term assets ($3.1B) exceed its long term liabilities ($700.3M).


Debt to Equity History and Analysis

Debt Level: CLS has more cash than its total debt.

Reducing Debt: CLS's debt to equity ratio has increased from 21.3% to 30.3% over the past 5 years.

Debt Coverage: CLS's debt is well covered by operating cash flow (47.4%).

Interest Coverage: CLS's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


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?

5.4yrs

Average management tenure


CEO

Rob Mionis (58 yo)

6.33yrs

Tenure

US$11,114,955

Compensation

Mr. Robert Andrew Mionis, also known as Rob, has been Chief Executive Officer and President at Celestica Inc. since August 1, 2015. He is responsible for the Celestica Inc. overall leadership, strategy, an...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.11M) is above average for companies of similar size in the Canadian market ($USD1.92M).

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


Leadership Team

Experienced Management: CLS's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: CLS's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CLS insiders have only sold shares 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 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$1.660b
  • Shares outstanding: 124.71m
  • Website: https://www.celestica.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:51
End of Day Share Price2021/12/03 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.