Celestica Story

CLS -  USA Stock  

USD 7.77  0.28  3.48%

It looks like On Semiconductor will be up for a correction faster as its share price went up 0.63% today to Celestica's 3.89%As many rational traders are trying to avoid technology space, it makes sense to sum up Celestica a little further and understand how it stands against On Semiconductor and other similar entities. We are going to discuss some of the competitive aspects of both Celestica and On Semiconductor.
Published over a month ago
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Our viewpoint on Celestica (NYSE:CLS) and On Semiconductor (NASDAQ:ON)?
By analyzing existing essential indicators between Celestica and On Semiconductor, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in On Semiconductor with a short position in Celestica. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
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 220.14 percent. This connotes that the company is making $2.2 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.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Celestica or On Semiconductor is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Celestica's Liquidity

Celestica financial leverage refers to using borrowed capital as a funding source to finance Celestica ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Celestica financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Celestica's total debt and its cash.

Correlation Between Celestica and On Semiconductor

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Celestica together with similar or unrelated positions with a negative correlation. For example, you can also add On Semiconductor to your portfolio. If On Semiconductor is not perfectly correlated to Celestica it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Celestica for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between CLS and ON for more information.

An Additional Perspective On Celestica

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Celestica revenue. Based on the latest financial disclosure, Celestica reported 5.75 B of revenue. This is 41.08% higher than that of the Technology sector and 273.68% higher than that of the Electronic Components industry. The revenue for all United States stocks is 39.06% higher than that of Celestica. As for On Semiconductor we see revenue of 5.26 B, which is 241.84% higher than that of the Electronic Components

Celestica5.75 Billion
Sector1.54 Billion
On Semiconductor5.26 Billion
5.8 B
1.5 B
5.3 B
On Semiconductor

Can Celestica correct the latest fall?

Latest maximum drawdown is at 10.21. Celestica currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.37. However, we advise investors to further question Celestica expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Celestica's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Celestica's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Celestica Investment

While other companies in the electronic components industry are either recovering or due for a correction, Celestica may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to sell some or all of your Celestica holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Celestica.

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 Ellen Johnson do not own shares of Celestica. Please refer to our Terms of Use for any information regarding our disclosure principles.

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