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Celestica, Inc. is one of the largest electronics manufacturing services company in the world, serving the computer, and communications sectors. The company provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. Celestica's extensive depth and breadth of offerings supports a wide variety of customer requirements from low volume, high complexity custom products to high volume commodity products.

Fundamental numbers:

• 38.90+ Weighted Alpha
• 35.72% gain in the last year
• Above its 20, 50 and 100 day moving averages
• Up 27.27% in the last month
• Recently traded at $50.76 with 50 day moving average of $43.09
• Market Cap $5.60 billion
• P/E 9.53
• Dividend yield 1.63%
• Revenue projected to grow 6.30% this year and grow another 10.00% next year
• Earnings estimated to decrease 9.10% this year, increase an additional 19.90% next year and continue to compound at an annual rate of 26.16% for the next 5 years

Price to Earnings:

• CLS is good value based on its earnings relative to its share price (22.03x), compared to the US Electronic Components industry average (27.5x)
• CLS is good value based on its earnings relative to its share price (22.03x), compared to the US market average (44.51x)

Profit margin

• CLS's Earnings (EBIT) of $383.20M can safely cover interest payments on company debt ($782.80M)
• CLS's profit margin has increased (+1.1%) in the last year from (2%) to (3.1%)

Asset to liabilities

• CLS's short-term assets ($4.51B) exceed its short-term liabilities ($3.22B)
• CLS's short-term assets ($4.51B) exceed its long-term liabilities ($902.70M)
• CLS's debt to equity ratio (2.33) is considered high

Cash Flow

• CLS's operating cash flow ($429.70M) is sufficient to service the company's debt ($782.80M)

Price consensus and EPS beat

Analyst projections

Revenue forecast

• CLS's revenue is forecast to grow at a rate of 9.77% per year, which is not exceptional
• But it’s the rate of growth which makes it interesting

Revenue growth forecast

• CLS's revenues are forecast to grow faster (9.77% per year) than the US Electronic Components industry average (2.45%)

Some other pointers

Diverse Client Base and Services: Celestica has a diversified portfolio of clients across various industries such as telecommunications, information technology, healthcare, aerospace, and defense. This diversification helps mitigate risks associated with downturns in any single sector.

Global Operations and Supply Chain Efficiency: With manufacturing and design facilities in Asia, the Americas, and Europe, Celestica is well-positioned to serve global clients efficiently. The company's focus on optimizing its supply chain and reducing lead times can provide a competitive advantage.

Investment in High Growth Areas: Celestica has been investing in high-growth areas such as cloud computing, healthcare technology, and renewable energy. These investments could lead to higher growth rates as these sectors expand.

Financial Performance and Stability: Evaluating the company's financial performance, including revenue growth, profit margins, and cash flow stability, is crucial. If Celestica demonstrates strong financial health, it could be a more reliable investment.

Strategic Acquisitions and Partnerships: Celestica has a history of strategic acquisitions and partnerships that have expanded its service offerings and market reach. Future acquisitions could further enhance its capabilities and competitiveness in the EMS industry.

I am not a financial analyst , trader or a financial advisor. I curate analysis. Nothing I publish should be taken as investment trading or broking advice. The data I use is curated from various news sources and based on the date it's taken number's may change. Reader's should do their own analysis for the most up-to-date numbers.