CLS (CELESTICA)
- P/E: 15.1
- GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.14
- SECTOR: ELECTRONIC TECHNOLOGY
- ASSETS-LIABILITIES: 1.78
- DIVIDEND: none
Celestica, a spinoff from IBM,
manufactures electronics and provides supply chain services for a
variety of businesses. The company has successfully improved upon
its operating margins and revenue during its last fiscal year.
Reporting April 20th before market open, the company will
try to beat Wall street expectations of $.28 and its own guidance of
$.24-$.3.
Celestica provides services for the
communications, consumer, server, and storage industries, as well as
working in diversified companies. This wide array of services gives
Celestica the opportunity to expand on revenue when one of its
segments is lagging. Rather than developing new products to boost
revenue, Celestica must rely on increasing customer satisfaction by
managing supply chains well for its clients. In order to showcase
their services, the company recently built a new customer service
center where clients can interact with agents observe demonstrations
of Celestica's services. The company's supply chain management
business is a product of its own journey to establishing a successful
in-house contract manufacturing process. Therefore, its supply chain
management not only boosts revenue organically, but it improves the
company's manufacturing business, as well. The company sells design
and engineering services, manufacturing, logistics, after-market,
supply chain services, and precision machining to its clients.
The company's CEO, Rob Mionis, has a
wealth of experience, having held the same title with StandardAero,
and other high-ranking positions with Honeywell, and private equity.
The company saw slight reduction in its free cash flow in FY 2016,
but its operating margin, revenues, and assets-liabilities ratios all
improved. The only recent change to the core company's leadership is
the addition of Thomas Gross, former COO of the electrical sector of
energy giant Eaton.
With a low P/E, recent growth, and a
solid balance sheet, the company could grow without becoming
overvalued. Earnings expectations from both wall street and the
company would not buck the current trend if surpassed. The company
has 4 “buy” and 8 “hold” ratings, according to the Wall
Street Journal.
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