Mid Tier EMS Firms Have Top Tier Managers

Lincoln International today published its quarterly EMS stock index and, as usual, there are several interesting nuggets to be gleaned. One thing that stands out is how well Celestica has been managed over the past several years. It’s the only one of the four top tier companies that is currently net positive in cash. Given that the sector historically offers little or no dividends to shareholders, that tells me Celestica is really ahead of the pack when it comes to creating a profitable business, regardless of whether this is reflected in its share price.

What also stands out is how much better overall the mid tier EMS companies have been at managing their debt loads. Four of the six mid tier companies tracked have no debt, and the other two have net debt of 2% or less of their annual revenues.

 

About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow
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