Celestica, Inc. (CLS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Celestica, Inc.

Ztest Electronics, Inc.

Firan Technology Group Corp.

Composite Alliance Group, Inc.

Nexoptic Technology Corp.

Why is Celestica, Inc. ?

Low Debt Company with Strong Long Term Fundamental Strength

Healthy long term growth as Operating profit has grown by an annual rate 54.14%
The company is Net-Debt Free

With a growth in Net Profit of 135.45%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 4 consecutive quarters
OPERATING CASH FLOW(Y) Highest at CAD 1,223.29 MM
ROCE(HY) Highest at 51.28%
INVENTORY TURNOVER RATIO(HY) Highest at 5.35 times

With ROE of 43.79%, it has a fair valuation with a 21.68 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 179.56%, its profits have risen by 107.4% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 79.93%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 179.56% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Celestica, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Celestica, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Celestica, Inc.

179.56%

98.46

71.39%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.48%

EBIT Growth (5y)

54.14%

EBIT to Interest (avg)

6.43

Debt to EBITDA (avg)

0.72

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

3.85

Tax Ratio

21.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

79.93%

ROCE (avg)

17.12%

ROE (avg)

13.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

21.68

EV to EBIT

40.84

EV to EBITDA

35.30

EV to Capital Employed

18.52

EV to Sales

3.36

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

45.35%

ROE (Latest)

43.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,223.29 MM

ROCE(HY)

Highest at 51.28%

INVENTORY TURNOVER RATIO(HY)

Highest at 5.35 times

NET SALES(Q)

Highest at CAD 5,551.3 MM

RAW MATERIAL COST(Y)

Fallen by -3.67% (YoY

CASH AND EQV(HY)

Highest at CAD 1,343.94 MM

DEBT-EQUITY RATIO (HY)

Lowest at 26.79 %

PRE-TAX PROFIT(Q)

At CAD 379.55 MM has Grown at 88.54%

NET PROFIT(Q)

At CAD 314.39 MM has Grown at 106%

-3What is not working for the Company

INTEREST(Q)

Highest at CAD 21.95 MM

Here's what is working for Celestica, Inc.

Operating Cash Flow

Highest at CAD 1,223.29 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 5,551.3 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 5.35 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At CAD 5,551.3 MM has Grown at 46.08%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 379.55 MM has Grown at 88.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 314.39 MM has Grown at 106%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 1,343.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 26.79 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Celestica, Inc.

Interest

At CAD 21.95 MM has Grown at 24.92%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 21.95 MM

in the last five periods and Increased by 24.92% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)