Celestica (CLS) AI Stock Analysis

• Market Cap: C$51.71B
• Dividend Yield: N/A
• Average Volume (3M): 636.23K
• Price to Earnings (P/E): 52.5
• Beta (1Y): 2.79
• Revenue Growth: 25.34%
• EPS Growth: 109.17%
• Country: CA
• Employees: 21,914
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.20
• Shares Outstanding: 115,036,620
• 10 Day Avg. Volume: 429,619
• 30 Day Avg. Volume: 636,231
• PEG Ratio: 0.33
• Price to Book (P/B): 5.75
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 35.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$502.99
• Price Target Upside: 11.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 8.25
• Revenue Forecast (FY): C$17.00B

• Rating: 76 Outperform
• Price Target: C$508.00 ▲(13.01% Upside)

Celestica's strong financial performance and positive earnings call guidance are the most significant factors driving the stock score. Technical indicators support a stable outlook, while valuation concerns due to a high P/E ratio slightly dampen the overall score. The company's strategic investments and growth in the CCS segment position it well for future expansion.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market positioning, enhancing Celestica's ability to invest in future opportunities.

Product Innovation

The new storage platform addresses data growth challenges, showcasing Celestica's innovation and strengthening its competitive edge in the tech industry.

Operating Margin Improvement

Improved operating margins reflect efficient cost management, enhancing profitability and providing a buffer against potential economic downturns.

Negative Factors

ATS Segment Decline

Declining ATS segment revenue could indicate challenges in maintaining market share or adapting to industry changes, potentially impacting future growth.

Enterprise Market Challenges

Significant decline in enterprise market revenue suggests difficulties in adapting to technological transitions, which may affect long-term competitiveness.

Inventory Increase

Rising inventory levels can tie up capital and indicate potential inefficiencies in supply chain management, affecting cash flow and operational agility.

Celestica Business Overview & Revenue Model

Company Description

Celestica Inc. (CLS) is a global leader in providing end-to-end supply chain solutions to various industries, including communications, enterprise computing, and industrial sectors. The company specializes in offering services such as design and engineering, manufacturing, and after-market services. With a strong emphasis on innovation and operational excellence, Celestica helps its clients enhance product quality, reduce time-to-market, and optimize costs.

How the Company Makes Money

Celestica generates revenue primarily through its diversified service offerings, which include electronics manufacturing services (EMS), design and engineering solutions, and supply chain management. The company earns money by providing these services to original equipment manufacturers (OEMs) and other businesses looking for reliable manufacturing partners. Key revenue streams include contract manufacturing, where Celestica produces components and assemblies for its clients, and after-market services, which involve repairs and maintenance of electronic products. Significant partnerships with major technology companies and a commitment to developing advanced manufacturing capabilities also contribute to its earnings, positioning Celestica as a trusted partner in the increasingly complex technology landscape.

Celestica Financial Statement Overview

Summary

Celestica exhibits a solid financial position with consistent revenue growth, improving profitability, and effective cash flow management. The company has managed to enhance its margins and maintain a balanced capital structure, positioning it well for future growth. While leverage is moderate, the strong return on equity and cash flow metrics highlight operational efficiency and financial stability.

Income Statement

Celestica has demonstrated strong revenue growth with a 4.97% increase in TTM, supported by improving margins. The gross profit margin has increased to 11.27% in TTM from 10.72% in 2024, and the net profit margin has improved to 4.95%. The EBIT and EBITDA margins have also shown positive trends, indicating efficient cost management and operational performance.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.50 in TTM, reflecting moderate leverage. The return on equity is robust at 29.81%, showcasing effective utilization of equity to generate profits. However, the equity ratio stands at 28.16%, suggesting a balanced but slightly leveraged capital structure.

Cash Flow

Celestica's cash flow performance is strong, with a notable free cash flow growth rate of 11.02% in TTM. The operating cash flow to net income ratio is 0.17, indicating solid cash generation relative to net income. The free cash flow to net income ratio of 0.71 further underscores the company's ability to convert earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.25B	9.65B	7.96B	7.25B	5.63B	5.75B
Gross Profit	1.30B	1.03B	778.50M	636.30M	487.00M	437.60M
EBITDA	1.03B	736.20M	545.30M	408.10M	294.00M	252.60M
Net Income	697.03M	428.00M	244.60M	145.50M	103.90M	60.60M
Balance Sheet
Total Assets	6.61B	5.99B	5.89B	5.63B	4.67B	3.66B
Cash, Cash Equivalents and Short-Term Investments	305.90M	423.30M	372.60M	374.50M	394.00M	463.80M
Total Debt	784.10M	796.70M	782.80M	786.10M	794.40M	585.90M
Total Liabilities	4.58B	4.09B	4.12B	3.95B	3.20B	2.26B
Stockholders Equity	2.03B	1.90B	1.77B	1.68B	1.46B	1.41B
Cash Flow
Free Cash Flow	328.38M	303.00M	304.60M	188.90M	174.60M	186.80M
Operating Cash Flow	482.09M	473.90M	429.70M	297.90M	226.80M	239.60M
Investing Cash Flow	-159.59M	-212.50M	-122.40M	-108.90M	-364.30M	-51.00M
Financing Cash Flow	-414.28M	-208.50M	-311.40M	-208.50M	67.70M	-204.30M

Celestica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 449.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CLS, the sentiment is Positive. The current price of 449.52 is above the 20-day moving average (MA) of 444.24, above the 50-day MA of 416.36, and above the 200-day MA of 251.34, indicating a bullish trend. The MACD of 6.57 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 55.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CLS.

Celestica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SANM	79 Outperform	$8.63B	35.48	10.81%	―	7.40%	13.79%
CLS	76 Outperform	C$51.71B	52.46	37.30%	―	25.34%	109.17%
BHE	74 Outperform	$1.68B	45.90	3.37%	1.45%	-2.93%	-40.33%
PNG	69 Neutral	C$1.74B	99.30	11.18%	―	11.77%	45.13%
FLEX	66 Neutral	$23.08B	27.54	17.45%	―	0.77%	0.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	61 Neutral	$23.51B	37.15	40.43%	0.15%	3.18%	-46.01%

Celestica Corporate Events

Laurette T. Koellner Rejoins Celestica’s Board of Directors

Celestica Inc. has announced the return of Laurette T. Koellner to its Board of Directors, after her unexpected departure earlier this year. Her reappointment is seen as a strategic move to bolster the company’s governance with her extensive financial expertise and deep industry knowledge, which is expected to enhance Celestica’s competitive edge as it continues to expand.

Celestica Reports Strong Q3 2025 Results and Raises Annual Outlook

Celestica Inc. reported strong financial results for the third quarter of 2025, with revenue reaching $3.19 billion, a 28% increase from the previous year, and adjusted EPS growing by 52% to $1.58. The company has raised its 2025 annual outlook, expecting revenue to reach $12.2 billion and adjusted EPS to $5.90, driven by strong demand in AI data center infrastructure. Looking ahead, Celestica anticipates further growth in 2026, projecting revenue of $16.0 billion and adjusted EPS of $8.20, as demand from major customers remains robust.