$Celestica (CLS.US)$In the analysis two years ago, due to lo...

A Canadian company listed in 1998, mainly focusing on supply chain solutions, with nearly half of its market in Thailand, currently priced at 44.2.

In the past 5 years, revenue shrank in the first 3 years, followed by growth in the last 2 years. The balance sheet shows a significant acquisition in 2021, possibly the result of the acquisition effect. There was a growth of 28.7% in 2022 and 9.8% in 2023. The operating profit is supported by the continuous increase in gross margin, growing steadily over the past 4 years with an average growth rate of 33%. The net income has also been growing steadily over the last 3 years with an average growth rate of 59%. From the quarterly report, there are signs of a significant slowdown in revenue growth, while profits continue to be supported by the increase in gross margin.

In 2023, interest expenses accounted for 19% of operating profit, indicating a heavy interest burden. The gross margin has increased from 6.5% to 9.8% in the past 5 years, and the return on net assets has increased from 5.2% to 14.2%.

The asset-liability ratio surged to 68.7% in 2021 due to a significant acquisition, and continued to increase to 70%. Currently, goodwill and other intangible assets amount to 0.647 billion, accounting for 36.6% of the 1.769 billion net assets. Long-term borrowings amount to 0.589 billion, representing 33.3% of the net assets.

Currently, cash is 0.37 billion, with a current ratio of 1.4 and quick ratio of 0.7.

For the past 5 years, net cash flow from operations has been higher than investment net cash flow, except in 2021, resulting in shareholder surplus.

The current PE ratio is 21.7, with some discount relative to recent growth rates. Considering the signs of revenue growth slowdown, a cautious approach is advised (⭐️).