Celestica (CLS) AI Stock Analysis

• Market Cap: $54.42B
• Dividend Yield: N/A
• Average Volume (3M): 830.98K
• Price to Earnings (P/E): 55.2
• Beta (1Y): 2.48
• 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: 705,390
• 30 Day Avg. Volume: 830,983
• 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: 0.54
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 24.62
• Enterprise Value/Ebitda: 34.41
• 1Y Price Target: $488.24
• Price Target Upside: -1.80% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$506.00 ▲(1.77% Upside)

Celestica's strong financial performance and positive earnings call guidance are the primary drivers of its overall score. The company's robust revenue growth, improving margins, and strategic investments in R&D and capacity expansion position it well for future growth. However, the high P/E ratio and overbought technical indicators suggest caution, as the stock may be overvalued and prone to short-term volatility.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market positioning, supporting long-term business expansion and sustainability.

R&D and Capacity Expansion

Increased R&D and capacity expansion enhance innovation and production capabilities, positioning Celestica for future growth and competitiveness.

Improving Margins

Improved margins reflect efficient cost management and operational performance, strengthening financial health and profitability.

Negative Factors

Decline in ATS Segment

A decline in the ATS segment could indicate challenges in adapting to market changes, potentially impacting future revenue streams.

Challenges in Enterprise Market

Challenges in the enterprise market may hinder growth in this segment, affecting overall revenue diversification and stability.

Inventory Increase

Increased inventory levels can tie up capital and indicate potential demand forecasting issues, impacting cash flow and operational efficiency.

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: 497.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 497.19 is above the 20-day moving average (MA) of 406.10, above the 50-day MA of 358.19, and above the 200-day MA of 219.95, indicating a bullish trend. The MACD of 37.55 indicates Negative momentum. The RSI at 72.23 is Negative, neither overbought nor oversold. The STOCH value of 82.28 is Negative, 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	73 Outperform	$54.42B	55.21	37.30%	―	25.34%	109.17%
ZTE	72 Outperform	C$9.74M	8.95	20.74%	―	-14.73%	-48.07%
PNG	66 Neutral	C$1.74B	99.30	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 Announces Share Buyback Approval from TSX

On October 30, 2025, Celestica Inc. announced that it received approval from the Toronto Stock Exchange to initiate a Normal Course Issuer Bid (NCIB) to repurchase up to 5,722,527 common shares, representing about 5% of its public float, starting November 3, 2025, until November 2, 2026. This move is intended to be a strategic use of funds, potentially impacting the company’s share value and market positioning, as it reflects confidence in its financial health and future prospects.

The most recent analyst rating on (TSE:CLS) stock is a Buy with a C$440.00 price target. To see the full list of analyst forecasts on Celestica stock, see the TSE:CLS Stock Forecast page.

Celestica’s Earnings Call: Record Growth and Positive Outlook

Celestica’s recent earnings call painted a picture of robust performance, underscored by record-breaking revenue and impressive growth metrics, particularly within the CCS segment. The company expressed optimism for future quarters, buoyed by strategic investments in R&D and capacity expansion. Despite some challenges in the ATS segment and a downturn in the enterprise market, the positive elements of the report significantly overshadowed these concerns, indicating a strong overall sentiment.

Celestica’s Manufacturing Shifts: Navigating Risks and Financial Impacts

Celestica faces significant business risks associated with the transfer of manufacturing operations between facilities, often necessitated by customer demands for cost or tariff reductions. Such transfers have historically led to increased costs due to facility downtime and suboptimal utilization of manufacturing capacity, alongside potential delays and complications in transitioning manufacturing programs. Additionally, these operational shifts could result in the closure or downsizing of facilities, incurring substantial costs related to closures, employee severance, and other related expenses, thereby impacting Celestica’s net income. The potential for future relocations or closures poses an ongoing risk to the company’s financial stability and customer service capabilities.

Celestica Reports Strong Q3 2025 Results and Raises Outlook

Celestica Inc., a global leader in data center infrastructure and advanced technology solutions, has reported robust financial results for the third quarter of 2025, showcasing significant growth in both revenue and earnings. The company operates in two main segments: Advanced Technology Solutions and Connectivity & Cloud Solutions, serving diverse markets including aerospace, defense, and communications.

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.

The most recent analyst rating on (TSE:CLS) stock is a Buy with a C$220.00 price target. To see the full list of analyst forecasts on Celestica stock, see the TSE:CLS Stock Forecast page.

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.

The most recent analyst rating on (TSE:CLS) stock is a Buy with a C$428.00 price target. To see the full list of analyst forecasts on Celestica stock, see the TSE:CLS Stock Forecast page.