Celestica Inc reports 6.5% EBITDA decline and almost no change in EBITDA Margin of 3.3%
27.01.2016 • About Celestica Inc (
$CLS) • By InTwits
Celestica Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 3.3% in 2015 vs. 3.5% in 2014 vs. 3.9% in 2011
- Celestica Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's in pair with industry average of 28.2%.
- CAPEX is quite volatile: 88.1 in 2015, 39.6 in 2014, 22.3 in 2013, 16.6 in 2012, 8.7 in 2011
- The company has business model with low profitability: ROIC is at 8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Celestica Inc ($CLS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,213 | 6,507 | 5,796 | 5,631 | 5,639 | 0.1% |
| Gross Profit | 491 | 438 | 389 | 405 | 391 | -3.5% |
| SG&A | 253 | 237 | 222 | 210 | 207 | -1.3% |
| EBITDA | 281 | 197 | 205 | 196 | 184 | -6.5% |
| Net Income | 195 | 118 | 118 | 108 | 67 | -38.2% |
Balance Sheet
|
|---|
| Cash | 659 | 551 | 544 | 565 | 545 | -3.5% |
| Short Term Debt | 0 | 55 | 0 | 0 | 29 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 251 | |
Cash flow
|
|---|
| Capex | 62 | 106 | 53 | 61 | 63 | 2.4% |
Ratios
|
|---|
| Revenue growth | 10.5% | -9.8% | -10.9% | -2.8% | 0.1% | |
| EBITDA growth | 31.9% | -30.0% | 4.2% | -4.3% | -6.5% | |
| Gross Margin | 6.8% | 6.7% | 6.7% | 7.2% | 6.9% | -0.3% |
| EBITDA Margin | 3.9% | 3.0% | 3.5% | 3.5% | 3.3% | -0.2% |
| Net Income Margin | 2.7% | 1.8% | 2.0% | 1.9% | 1.2% | -0.7% |
| SG&A, % of revenue | 3.5% | 3.6% | 3.8% | 3.7% | 3.7% | -0.1% |
| CAPEX, % of revenue | 0.9% | 1.6% | 0.9% | 1.1% | 1.1% | 0.0% |
| ROIC | 14.5% | 8.0% | 9.6% | 9.1% | 8.3% | -0.8% |
| ROE | 14.2% | 8.4% | 8.7% | 7.7% | 5.4% | -2.4% |
| Net Debt/EBITDA | -2.3x | -2.5x | -2.7x | -2.9x | -1.4x | 1.4x |
Revenue and profitability
The company's Revenue showed almost no change in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign decreased slightly on 0.74 pp from 1.9% to 1.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
Celestica Inc's CAPEX/Revenue was 1.1% in 2015. CAPEX/Revenue decreased slightly on 0.51 pp from 1.6% in 2012 to 1.1% in 2015. For the last three years the average CAPEX/Revenue was 1.0%.
Return on investment
The company operates at low ROIC (8.33%) and ROE (5.38%). ROIC decreased slightly on 0.81 pp from 9.1% to 8.3% in 2015. ROE decreased on 2.4 pp from 7.7% to 5.4% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -1.4x and Debt / EBITDA is 1.5x. Net Debt / EBITDA surged on 1.4x from -2.9x to -1.4x in 2015. Debt surged while cash decreased on 3.5% in 2015.
Management team
The company's CEO is Robert A Mionis "Rob". Robert A Mionis "Rob" is a founder and has 3 years tenure at the company. Celestica Inc's CFO Darren G Myers has spent 5 years at the company.
Appendix 1: Peers in Industrial
Below you can find Celestica Inc benchmarking vs. other companies in Industrial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 12.9% | 11.5% | 5.3% | 9.4% | 16.2% |
|---|
| Celestica Inc ($CLS) | | -9.8% | -10.9% | -2.8% | 0.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 26.5% |
|---|
| Celestica Inc ($CLS) | 6.8% | 6.7% | 6.7% | 7.2% | 6.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | |
| |
|---|
| Median (85 companies) | 8.3% | 9.4% | 8.3% | 7.7% | 12.3% |
|---|
| Celestica Inc ($CLS) | 3.9% | 3.0% | 3.5% | 3.5% | 3.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 3.3% |
|---|
| Celestica Inc ($CLS) | 0.9% | 1.6% | 0.9% | 1.1% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 10.0% | 8.5% | 8.5% | 12.0% |
|---|
| Celestica Inc ($CLS) | 14.5% | 8.0% | 9.6% | 9.1% | 8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.3x | -0.2x |
|---|
| Celestica Inc ($CLS) | -2.3x | -2.5x | -2.7x | -2.9x | -1.4x |
