Celestica Story

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CLS -- USA Stock  

USD 8.47  0.19  2.29%

In general, we focus on analyzing Celestica (NYSE:CLS) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Celestica daily price indicators and compare them against related drivers. Let's try to sum up what's happening with Celestica amid unprecedented political, and economic uncertainty.
Published over a month ago
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Is Celestica (NYSE:CLS) gaining more confidence from retail investors?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Celestica has an asset utilization ratio of 223.97 percent. This connotes that the company is making $2.24 for each dollar of assets. An increasing asset utilization means that Celestica is more efficient with each dollar of assets it utilizes for everyday operations. The company has Net Profit Margin of 0.57 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 3.88 %, which entails that for every 100 dollars of revenue, it generated 0.04 of operating income.
The successful prediction of Celestica stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Celestica, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Celestica based on Celestica hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Celestica's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Celestica's related companies.

Use Technical Analysis to project Celestica expected Price

Celestica technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Celestica technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Celestica trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Celestica utilizes its cash?

To perform a cash flow analysis of Celestica, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Celestica is receiving and how much cash it distributes out in a given period. The Celestica cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Celestica Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Celestica reported last year Net Cash Flow from Operations of 310.5 Million

Another Deeper Perspective

The latest price spike of Celestica could raise concerns from retail investors as the firm it trading at a share price of 8.76 on 215,679 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.7. The current volatility is consistent with the ongoing market swings in December 2020 as well as with Celestica unsystematic, company-specific events.

Cost of Revenue Breakdown

Celestica Cost of Revenue yearly trend continues to be relatively stable with very little volatility. Cost of Revenue is likely to grow to about 5 B this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Celestica Cost of Revenue is relatively stable at the moment as compared to the past year. Celestica reported last year Cost of Revenue of 4.95 Billion
2014
2015
2016
2017
2018
2019
2020
2021
20145.23 Billion
20155.25 Billion
20165.62 Billion
20175.72 Billion
20186.2 Billion
20195.5 Billion
20204.95 Billion
20215.04 Billion

Celestica showing record of lower volatility

The kurtosis is down to 6.39 as of today. Celestica shows above-average downside volatility for the selected time horizon. We advise investors to inspect Celestica further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Celestica future alpha.

The Current Takeaway on Celestica Investment

While some companies under the electronic components industry are still a bit expensive, Celestica may offer a potential longer-term growth to retail investors. To conclude, as of the 26th of January 2021, we believe that Celestica is currently overvalued with below average probability of financial unrest in the next two years. Our primary 30 days 'Buy-vs-Sell' recommendation on the enterprise is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Celestica. Please refer to our Terms of Use for any information regarding our disclosure principles.

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