Celestica Inc.

NYSE:CLS Stock Report

Market Cap: US$47.5b

Celestica Balance Sheet Health

Financial Health criteria checks 5/6

Celestica has a total shareholder equity of $2.1B and total debt of $715.9M, which brings its debt-to-equity ratio to 34.1%. Its total assets and total liabilities are $8.3B and $6.2B respectively. Celestica's EBIT is $1.2B making its interest coverage ratio 20.6. It has cash and short-term investments of $378.0M.

Key information

34.12%

Debt to equity ratio

US$715.90m

Debt

Interest coverage ratio20.6x
CashUS$378.00m
EquityUS$2.10b
Total liabilitiesUS$6.16b
Total assetsUS$8.26b

Recent financial health updates

No updates

Recent updates

Seeking Alpha • May 03

Celestica: AI Infrastructure Dominance Meets Critical Supply Chain Realities

Summary Celestica benefits from the record CapEx of hyperscalers, although there are new risks associated with component shortages. The partnership with AMD could become the reason for a new transformation of CLS, which will make it a more important player in the AI industry. The results for Q1 2026 are excellent, and the increase in forecasts is also positive. But there is no guarantee that a revenue push-out will not occur. I maintain my "buy" rating, but in this article, I do not hide the fact that new risks are hidden behind Celestica's competitive strength. Read the full article on Seeking Alpha
Seeking Alpha • Apr 28

Celestica's Beat And Raise Performance Underscores Durability Of AI Boom (Rating Upgrade)

Summary The recent market correction has made CLS a lot more appealing, bringing it closer to our buy zone/fair value estimates. This is aided by the double beat FQ1 '25 earnings call and raised FY 2025 guidance, no matter the recent market fears surrounding the intensified tariff war. This is on top of the promising commentaries offered by market leaders in the semiconductor/hyperscaler industry, with it underscoring the durability of data center capex boom. Combined with the ongoing share retirement, compelling valuations, and the promising stock market indicators, we believe that CLS offers a rich double-digit upside potential ahead. We shall further discuss why we have upgraded our rating to a buy here. Read the full article on Seeking Alpha
Seeking Alpha • Apr 21

Celestica: Do Not Miss Out The Golden Pre-Earnings Opportunity

Summary Celestica Inc. is poised for a strong Q1 earnings release, driven by AI tailwinds and robust demand in enterprise communications and data center markets. The company's transformation into a high-margin AI infrastructure provider and strategic partnerships bolster its growth prospects and international expansion. Celestica's solid financial position and history of earnings surprises enhance confidence in its ability to deliver double-digit EPS growth. Despite concentration risks and macroeconomic uncertainties, CLS stock's attractive valuation and potential 41% upside make it a compelling buy before earnings. Read the full article on Seeking Alpha
Seeking Alpha • Apr 11

Celestica: What's Fueling This Silent Climber

Summary Celestica posted 21% YoY revenue growth in CY 2024, driven by 30% CCS segment expansion and strong hyperscaler demand. Q4 CY 2024 revenue hit $2.546B, with $1.74B from CCS, which now makes up 68% of total sales. Free cash flow grew 11.6% in Q4 and is projected to rise 14.4% in CY 2025, outpacing revenue growth. CLS trades at 0.93x EV/Sales and 13x EV/EBITDA, deep discounts versus peers despite improving operating leverage and cash flow. Flat ATS growth and CCS dependency pose risks, but capital-light growth and margin expansion support long-term upside potential. Read the full article on Seeking Alpha
Seeking Alpha • Mar 24

Celestica: The AI Stock Set For High Growth After A 20% Drop

Summary Celestica’s revenue rose 21% year-over-year to $9.65B, fueled by CCS growth; FCF jumped 50% amid buybacks and low leverage, indicating strong fundamentals. HPS design capabilities expand margins, forging durable ties across AI, defense, and data centers, with multi-year production programs reinforcing stability. Risks include Thailand/China exposure, big-customer reliance, and AI capex cycles, yet Celestica’s outlook remains bullish with ~30% upside potential. Read the full article on Seeking Alpha
Seeking Alpha • Mar 18

Celestica: Overvaluation Amid Weakening AI Craze

Summary Celestica stock is significantly overvalued by 16%, driven by AI-related revenue growth but hindered by low profitability. Despite aggressive growth in its CCS segment, Celestica's low gross margin limits innovation and resilience against industry or macroeconomic headwinds. The AI market is cooling and the slow economic payoff from AI adoption further challenges Celestica's long-term growth prospects. Given the unattractive valuation and limited innovation capacity, I recommend selling Celestica stock. Read the full article on Seeking Alpha
Seeking Alpha • Mar 09

Celestica: A Solid Buying Opportunity

Summary Celestica is rated as a "Strong Buy" due to a 40% stock dip, presenting a golden buying opportunity for GARP investors. Despite tariff concerns, CLS's EPS growth, high operating margins, and strong demand from hyperscaler customers make the stock significantly undervalued by at least 31%. The company's transition to higher-value ODM services and robust CCS segment growth position it well for long-term stability and profitability. Risks include potential tariff impacts and economic downturns, but CLS's strategic focus and management's confidence mitigate these concerns. The longer-term EPS growth should be more stable, despite the geopolitical risks surrounding the business today. Read the full article on Seeking Alpha
Seeking Alpha • Feb 25

Celestica: Fueled By Relentless Catalysts

Summary Celestica's strong Q4 performance and robust FY2025 guidance, driven by AI tailwinds and data center spending, support a "Strong buy" rating. The stock's valuation is attractive, with a DCF model indicating a 38% upside potential, even under conservative growth assumptions. Celestica's financial flexibility, low RSI levels, and significant momentum make it well-positioned for continued growth and value creation. Read the full article on Seeking Alpha
Seeking Alpha • Feb 11

Celestica: Management And Analysts Upped Guidance/Estimates Still Appear Conservative

Summary Celestica's stock rating is adjusted from a strong buy to a buy due to a rapid share price increase and coming off seasonal strength. The CCS segment, driven by AI CapEX, is growing fast and dominating earnings, with margins expanding significantly. Management's conservative guidance and optimistic outlook suggest potential for higher-than-expected revenue and earnings growth in 2025. Despite trading at 30x forward earnings, Celestica's strong growth, diversified customer base, and increasing high-margin IP revenue still justify a buy rating. Read the full article on Seeking Alpha
Seeking Alpha • Feb 05

Celestica: Room For Margin And Multiple Expansion

Summary An SA Quant top 10 stock for 2025. Celestica's integration into the data center/AI supply chain is fueling its growth and transforming its business model with own R&D, innovation and design potential. The company expects 22% EPS growth on expanding margins in 2025. The shares are relatively cheap at under 1x PEG, with potential for expansion to 1.2x or a US$160 YE25 price target. Key risk is hyperscaler concentration and dependence on continued data center demand that the DeepSeek scare highlighted. Read the full article on Seeking Alpha
Seeking Alpha • Jan 30

Celestica Q4 Earnings: Why DeepSeek Fears Are Overblown

Summary Celestica's stock has been volatile but remains strong, with a raised 2025 outlook and a valuation of 32x forward free cash flow. The company is well-positioned with new AI projects and significant wins, ensuring growth into 2026 despite recent market concerns. Celestica's robust balance sheet, with $1.7 billion in cash and mid-teens revenue growth, makes its current valuation reasonable. Market fears about AI hardware demand seem overblown, as Celestica's management remains confident, raising guidance and maintaining strong business performance. Read the full article on Seeking Alpha
Seeking Alpha • Jan 14

Unlocking Growth Potential: Why Celestica's ODM Transition Is A Game Changer For Investors

Summary Celestica is transitioning from traditional contract manufacturing to an Original Design Manufacturer, or ODM, model, enhancing its value proposition in the market. This strategic shift positions Celestica to capitalize on emerging trends in technology and manufacturing, attracting new clients and partnerships. The company's focus on innovation allows it to deliver tailored solutions and products, making it more competitive in high-demand sectors. Strong financial performance and growth potential make Celestica an attractive investment, as it looks to leverage its ODM capabilities for sustained market success. Read the full article on Seeking Alpha
Seeking Alpha • Dec 26

Celestica: A Trifecta Of Growth, Margin Expansion And Improving Cash Flow Conversion

Summary The growth outlook is strong, driven by tailwinds in the CCS segments' end markets. The mix-shift driven EBIT margin thesis is playing out and has more runway as the higher-margin CCS is expected to continue outgrowing ATS. Inventory reduction is improving net working capital intensity, which can lead to a higher base of FCF conversion. Valuations are at a 18.6% premium vs peers, but I think it is tolerable given the trifecta of growth, margin expansion and improving cash flow conversion. CLS stock is in a clear bullish uptrend. But multiple-expansion led price appreciation is a hype risk factor to monitor. Read the full article on Seeking Alpha
Seeking Alpha • Dec 04

Celestica: The AI Datacenter's Supply Chain Winner

Summary Celestica Inc.'s robust fundamentals and strong demand from the data center business continue to drive growth, supporting a Buy rating. The company's HPS networking switches revenue grew 54%, accounting for 30% of total revenue, highlighting its pivotal role in data centers. Management's revised 2024 guidance projects $9.6 billion in revenue and a 6.5% adjusted operating margin, indicating strong business momentum. Valued at 20x 2025 earnings, CLS stock offers at least 20% upside potential, making it an attractive investment compared to peers. Read the full article on Seeking Alpha
Seeking Alpha • Nov 04

Celestica: AI Capex Boom Still Promising, Baked-In Premium Triggers Downgrade

Summary CLS remains well positioned to report robust top/ bottom-lines, as observed in its supply agreements with numerous hyperscalers and AI-related companies. These developments have also contributed to its double beat FQ3'24 performance, raised FY2024 guidance, and exemplary FY2025 guidance. CLS' numbers are well supported by the robust AI market spending trends, as reported by TSM and numerous hyperscalers in the FQ3'24 earnings call. Even so, it is undeniable that CLS has pulled forward part of its upside potential after the immense rally, with it offering interested investors with a minimal margin of safety. At the same time, readers must not forget the inherently cyclical nature of data center capex, with it potentially triggering the stock's painful corrections. Read the full article on Seeking Alpha
Seeking Alpha • Oct 24

Celestica Q3: Defying Expectations With Undemanding Valuations

Summary Celestica stock popped after its Q3 earnings release in post-market trading. Despite a decline in its ATS segment, Celestica's upgraded 2024 outlook and AI infrastructure demand support its bullish thesis. A revenue slowdown from 2025 could pan out, but CLS is targeting higher-value businesses, possibly lifting its profitability. I argue why the market seems too pessimistic about its potential cyclicality, as CLS is valued below its sector and industry peers. Read the full article on Seeking Alpha
Seeking Alpha • Oct 12

Celestica: Still A Value Buy Despite The Recent Recovery

Summary CLS' overly expensive valuations have finally been brought closer to earth, thanks to the recent market rotation in July/ August 2024. With the two main players in AI still reporting robust performance metrics, we believe that CLS remains a compelling value buy, attributed to its cheap PEG non-GAAP ratio of 0.51x. Combined with the hyperscalers' intensified capex guidance in the near/ intermediate term, it is unsurprising that CLS is expected to generate robust top/ bottom line growth through FY2026. Even so, while the company has been able to generate robust performance metrics along with an excellent upward stock price trend, readers may want to temper their expectations. FY2025 is likely to bring forth a tougher YoY comparison, worsened by the risks arising from a highly cyclical data center capex cycle and elevated customer concentration. Read the full article on Seeking Alpha

Financial Position Analysis

Short Term Liabilities: CLS's short term assets ($6.4B) exceed its short term liabilities ($5.1B).

Long Term Liabilities: CLS's short term assets ($6.4B) exceed its long term liabilities ($1.1B).

Debt to Equity History and Analysis

Debt Level: CLS's net debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: CLS's debt to equity ratio has increased from 31.7% to 34.1% over the past 5 years.

Debt Coverage: CLS's debt is well covered by operating cash flow (123.7%).

Interest Coverage: CLS's interest payments on its debt are well covered by EBIT (20.6x coverage).

Balance Sheet

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/07 23:44
End of Day Share Price 2026/05/07 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Celestica Inc. is covered by 33 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Skye ChenAletheia Analyst Network Limited
James KelleherArgus Research Company
Jesse PytlakATB Cormark Historical (Cormark Securities)