NYSE:CLS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with adequate balance sheet.


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

-7.4%

CLS

-4.2%

US Electronic

-4.2%

US Market


1 Year Return

-23.4%

CLS

2.0%

US Electronic

14.0%

US Market

Return vs Industry: CLS underperformed the US Electronic industry which returned 5.6% over the past year.

Return vs Market: CLS underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CLSIndustryMarket
7 Day-7.4%-4.2%-4.2%
30 Day-17.3%-8.2%-1.8%
90 Day-5.7%-4.5%2.6%
1 Year-23.4%-23.4%3.0%2.0%16.3%14.0%
3 Year-44.9%-44.9%31.5%27.9%43.2%34.0%
5 Year-38.3%-38.3%60.5%52.6%65.9%47.6%

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

No news available

Valuation

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

21.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLS ($7.59) is trading below our estimate of fair value ($9.34)

Significantly Below Fair Value: CLS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CLS is good value based on its PE Ratio (14.1x) compared to the Electronic industry average (19x).

PE vs Market: CLS is good value based on its PE Ratio (14.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CLS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CLS is good value based on its PB Ratio (0.7x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLS's forecast earnings growth (18.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CLS's earnings (18.1% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: CLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLS's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: CLS's revenue is forecast to decline over the next 3 years (-4.5% 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?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLS has a large one-off gain of $52.0M impacting its December 31 2019 financial results.

Growing Profit Margin: CLS's current net profit margins (1.2%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: CLS's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: CLS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLS had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Electronic industry average (13.8%).


Return on Equity

High ROE: CLS's Return on Equity (5.2%) 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) exceed its short term liabilities ($1.5B).

Long Term Liabilities: CLS's short term assets ($2.6B) exceed its long term liabilities ($730.2M).


Debt to Equity History and Analysis

Debt Level: CLS's debt to equity ratio (34.9%) 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 (73%).

Interest Coverage: CLS's interest payments on its debt are not well covered by EBIT (2x 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 5.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%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 US market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Rob Mionis (56yo)

4.5yrs

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 ($USD10.24M) is above average for companies of similar size in the US market ($USD2.51M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Mionis
President4.5yrsUS$10.24m0.46% $4.4m
Mandeep Chawla
Chief Financial Officer2.8yrsUS$2.27m0.057% $552.3k
Todd Cooper
Chief Operations Officer2.1yrsUS$2.59m0.10% $992.9k
John Lawless
President of Advanced Technology Solutions4.3yrsUS$2.52m0.11% $1.1m
Shlomo Bibas
Senior VP & Chief Information Officer1.1yrsno datano data
Elizabeth DelBianco
Chief Legal & Administrative Officer0yrsUS$2.30m0.12% $1.2m
Todd Melendy
Vice President of Sustainability & Compliance0yrsno datano data
Craig Oberg
Vice President of Investor Relations & Corporate Development0yrsno datano data
Jason Phillips
President of Connectivity & Cloud Solutions6yrsno data0.030% $293.2k
Rodney Bergman
Senior Vice President of Global Business Services6.1yrsno datano data

4.3yrs

Average Tenure

52.5yo

Average Age

Experienced Management: CLS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Mionis
President4.5yrsUS$10.24m0.46% $4.4m
Michael Wilson
Chair of the Board0.08yrsUS$245.00k0.016% $151.1k
Laurette Koellner
Independent Director10.8yrsUS$265.00kno data
Robert Cascella
Independent Director1yrsno datano data
Tawfiq Popatia
Director3.1yrsno datano data
Deepak Chopra
Independent Director1.8yrsUS$176.25kno data
Eamon Ryan
Independent Director11.3yrsUS$250.00kno data
Daniel DiMaggio
Independent Director9.6yrsUS$245.00kno data
Carol Perry
Independent Director6.3yrsUS$235.00kno data

4.5yrs

Average Tenure

65yo

Average Age

Experienced Board: CLS's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CLS 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: NYSE
  • Founded: 1996
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: CA$1.292b
  • Listing Market Cap: CA$973.256m
  • Shares outstanding: 128.79m
  • 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 & 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:31
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
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.