Celestica (CLS) AI Stock Analysis

• Market Cap: C$42.73B
• Dividend Yield: N/A
• Average Volume (3M): 956.57K
• Price to Earnings (P/E): 59.1
• Beta (1Y): 2.58
• Revenue Growth: 24.07%
• EPS Growth: 61.63%
• Country: CA
• Employees: 21,914
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.92
• Shares Outstanding: 115,032,684
• 10 Day Avg. Volume: 867,208
• 30 Day Avg. Volume: 956,569
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$388.03
• Price Target Upside: 2.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: C$428.00 ▲(12.99% Upside)

Celestica's strong financial performance and positive earnings call are the most significant factors driving the stock score. The technical analysis supports a positive outlook, although high valuation presents a risk. The company's raised guidance and strategic growth in the CCS segment further bolster confidence in its future prospects.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Celestica's products and services, enhancing its market position and supporting long-term business expansion.

Product Innovation

The launch of advanced data center switches strengthens Celestica's product portfolio, catering to high-bandwidth AI/ML applications, and positions the company as a leader in data center solutions.

Operating Margin Improvement

Improved operating margins reflect efficient cost management and operational performance, enhancing profitability and financial stability over the long term.

Negative Factors

Decline in Enterprise Revenue

A significant decline in enterprise revenue due to technology transitions could impact Celestica's revenue diversification and growth in this segment.

Increased Inventory Levels

Rising inventory levels may indicate potential inefficiencies in supply chain management, leading to higher holding costs and potential write-downs if demand fluctuates.

Challenges in A&D Business

Challenges in the aerospace and defense sector could limit growth opportunities and affect Celestica's ability to maintain a balanced revenue stream across sectors.

Celestica Business Overview & Revenue Model

Company Description

Celestica Inc. provides hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments, Advanced Technology Solutions, and Connectivity & Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, engineering, supply chain management, new product introduction, component sourcing, electronics manufacturing and assembly, testing, complex mechanical assembly, systems integration, precision machining, order fulfillment, logistics, asset management, product licensing, and after-market repair and return services. It also provides enterprise-level data communications and information processing infrastructure products, such as routers, switches, data center interconnects, edge solutions, servers, and storage-related products; capacitors, microprocessors, resistors, and memory modules; and power inverters, energy storage products, smart meters, and other electronic componentry products. The company serves aerospace and defense, industrial, energy, healthtech, capital equipment, original equipment manufacturers, cloud-based, and other service providers, including hyperscalers, and other companies in a range of industries. Celestica Inc. was incorporated in 1994 and is headquartered in Toronto, Canada.

How the Company Makes Money

Celestica generates revenue primarily through its electronics manufacturing services (EMS) and original design manufacturing (ODM). The company operates on a business model that involves manufacturing and assembling electronic components and systems for clients across different industries. Key revenue streams include contracts with major clients in sectors like telecommunications and healthcare, where they provide customized solutions tailored to specific client needs. Celestica also benefits from long-term partnerships with leading technology companies, which provide a steady flow of orders and enable economies of scale. Additionally, the company's integrated supply chain solutions allow it to offer value-added services, such as logistics and inventory management, further enhancing its revenue potential. Factors such as technological advancements and a growing demand for smart devices and IoT solutions also contribute to Celestica's earnings.

Celestica Financial Statement Overview

Summary

Celestica exhibits strong financial performance with consistent revenue growth, improving profitability, and effective cash flow management. The company has enhanced its margins and maintains a balanced capital structure, positioning it well for future growth. 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	10.59B	9.65B	7.96B	7.25B	5.63B	5.75B
Gross Profit	1.19B	1.03B	778.50M	636.30M	487.00M	437.60M
EBITDA	854.00M	736.20M	515.70M	408.10M	294.00M	252.60M
Net Income	523.90M	428.00M	244.60M	145.50M	103.90M	60.60M
Balance Sheet
Total Assets	6.24B	5.99B	5.89B	5.63B	4.67B	3.66B
Cash, Cash Equivalents and Short-Term Investments	313.80M	423.30M	372.60M	374.50M	394.00M	463.80M
Total Debt	875.20M	796.70M	782.80M	786.10M	794.40M	585.90M
Total Liabilities	4.48B	4.09B	4.12B	3.95B	3.20B	2.26B
Stockholders Equity	1.76B	1.90B	1.77B	1.68B	1.46B	1.41B
Cash Flow
Free Cash Flow	339.60M	303.00M	304.60M	188.90M	174.60M	186.80M
Operating Cash Flow	502.40M	473.90M	429.70M	297.90M	226.80M	239.60M
Investing Cash Flow	-173.70M	-212.50M	-122.40M	-108.90M	-364.30M	-51.00M
Financing Cash Flow	-448.90M	-208.50M	-311.40M	-208.50M	67.70M	-204.30M

Celestica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 378.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 378.79 is above the 20-day moving average (MA) of 354.76, above the 50-day MA of 324.73, and above the 200-day MA of 206.32, indicating a bullish trend. The MACD of 15.67 indicates Negative momentum. The RSI at 60.38 is Neutral, neither overbought nor oversold. The STOCH value of 55.87 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
CLS	76 Outperform	C$42.73B	59.07	30.28%	―	24.07%	61.63%
ZTE	72 Outperform	C$10.69M	8.02	―	―	2.68%	-21.26%
PNG	66 Neutral	C$1.85B	105.24	16.90%	―	-1.96%	24.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Celestica Corporate Events

Celestica Appoints Chris Colpitts to Board of Directors

On July 28, 2025, Celestica Inc. appointed Chris Colpitts to its Board of Directors, recognizing his extensive 20-year experience in technology, media, and telecommunications sectors. Colpitts, who will join several key committees, is expected to contribute significantly to Celestica’s growth and innovation strategy, leveraging his background in investment banking and private equity.

The most recent analyst rating on (TSE:CLS) stock is a Buy with a C$240.00 price target. To see the full list of analyst forecasts on Celestica stock, see the TSE:CLS Stock Forecast page.

Celestica Exceeds Q2 Expectations, Raises 2025 Outlook

Celestica Inc., a prominent player in design, manufacturing, hardware platform, and supply chain solutions, partners with leading companies across various sectors, including Aerospace, Defense, Communications, and HealthTech, to deliver innovative solutions globally.

Celestica Shines in Q2 2025 Earnings Call

The recent earnings call for Celestica showcased a robust performance in the second quarter of 2025, highlighted by record revenues and earnings per share (EPS). The positive sentiment was driven by strong demand in the Communications and Cloud Solutions (CCS) segment and improvements in operating margins. Despite some challenges in the enterprise end market and a projected moderation in the capital equipment business, the company’s overall guidance and outlook were raised, indicating a promising trajectory ahead.

Celestica Surpasses Q2 2025 Expectations and Raises Annual Outlook

Celestica reported strong financial results for Q2 2025, with revenue reaching $2.89 billion, a 21% increase from the previous year, and adjusted EPS of $1.39, a 54% rise. The company exceeded its guidance ranges and has raised its 2025 annual outlook, expecting revenue to hit $11.55 billion and adjusted EPS to reach $5.50. This performance reflects robust demand from CCS customers and improved operating margins, positioning Celestica favorably in the market.

The most recent analyst rating on (TSE:CLS) stock is a Buy with a C$150.00 price target. To see the full list of analyst forecasts on Celestica stock, see the TSE:CLS Stock Forecast page.