NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 223.25% to $5.30 million when compared to the same quarter last year. In addition, CELESTICA INC has also vastly surpassed the industry average cash flow growth rate of 13.75%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 849.2% when compared to the same quarter one year prior, rising from -$6.10 million to $45.70 million.
- CELESTICA INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CELESTICA INC increased its bottom line by earning $0.34 versus $0.23 in the prior year.
- CLS's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
Celestica Inc. provides electronics manufacturing services and solutions to original equipment manufacturers in the consumer, communications, enterprise computing, industrial, aerospace and defense, healthcare, and green technology sectors in Asia, the Americas, and Europe. The company has a P/E ratio of 23, equal to the average electronics industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Celestica has a market cap of $1.7 billion and is part of the
industry. Shares are down 3.6% year to date as of the close of trading on Monday.
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