Celestica Inc. (CLS)
POSITIVEFundamental
73
Price
$304.00
Market Cap
$36.92B
Part 1 · What the company is worth
Overview
Celestica builds electronic hardware that other companies designed but do not want to manufacture themselves: servers and networking gear for cloud computing customers, plus aerospace, industrial and healthcare electronics. It owns the factories, buys the components, assembles and tests the finished product, then ships it under the customer's brand. Its growth in recent years has come almost entirely from hyperscale cloud and networking hardware for the small number of companies building today's AI data centres.
How it makes money
Celestica is paid for manufacturing services: it earns revenue on the hardware it ships, with margins coming from efficient production and component sourcing rather than from owning any proprietary technology in the product itself. Because it depends on a handful of very large customers for design wins and production volume, results move sharply with those customers' capital-spending decisions rather than with broad consumer demand.
Revenue by segment
Servers, storage and networking hardware built mainly for hyperscale cloud providers and communications equipment makers.
Electronics manufacturing for aerospace and defence, industrial equipment, healthtech and capital equipment customers.
Competitive moat
No identified moat · NoneContract electronics manufacturing is a competitive, price-driven industry with several large players capable of building similar hardware; Celestica itself names aggressive pricing dynamics and numerous competitors as an ongoing pressure. Its edge comes from operational execution and deep relationships with a few large customers rather than from a durable structural advantage a rival cannot copy.
What drives demand
CyclicalOrders follow the capital-spending cycles of a small number of very large technology and networking customers, which can ramp production up or down quickly as their own end-market demand shifts. A slowdown in cloud data-centre build-out or a program cancellation at a top customer would show up in Celestica's results almost immediately.
Key risks
- Customer program cancellation — Customers may change or cancel programs at any time based on shifting end-market demand or their own products' success, and Celestica has little control over that decision.
- Customer concentration — A significant reduction in, or the loss of, revenue from one of the largest customers could have a material adverse effect on results, financial position and cash flows.
- Intense industry competition — The electronics manufacturing services and ODM industry has numerous competitors and aggressive pricing dynamics, which pressures margins and can shift business away from Celestica on short notice.
- Dependence on customers' own success — Celestica's results are tied to how well its customers' end products sell and to rapid technology change in their markets, factors entirely outside its control.
Customer concentration
Top customers account for 58% of revenue
In 2025 three customers, all within the Connectivity and Cloud Solutions segment, individually accounted for 10% or more of revenue — 32%, 14% and 12% respectively — and the ten largest customers together made up 79% of revenue.
The case for
Buyers argue that Celestica has become a critical, hard-to-replace manufacturing partner for the handful of companies building AI data-centre infrastructure, and that CCS segment revenue growth of 42% in 2025 shows real share gains rather than a one-off spike.
The case against
Sellers fear that with three customers alone worth 58% of revenue, a single program loss or a pause in one hyperscaler's data-centre spending could sharply cut results, and that the underlying manufacturing business remains a low-margin, highly competitive trade with little pricing power of its own.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$15.59B
Trailing 12 months (through 6/30/2026)
Net Income
$1.12B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$458M
Total Equity
$2.22B
Total Liabilities
$5.00B
Current Ratio
1.23
Interest Coverage
22.20
Debt/EBITDA
0.81
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$317.81
Current Price
$304.00
Margin of Safety
+4.3%
Fair Value Range
$206.58 - $429.04
Estimation Methods
Valuation Metrics
P/E Ratio
30.68
ROE
37.6%
P/B Ratio
13.66
P/FCF
65.30
Gross Margin
12.0%
ROIC
30.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
30.0%
WACC
14.3%
ROIC − WACC
+15.7 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- EPS CAGR 69.90%
- Price CAGR 37.99%
- ROIC 30.0%
- Debt/Equity ratio
- Operating Margin 8.8%
- Positive Free Cash Flow
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 50.6%
- Revenue Growth 5Y 16.6%
- Analyst Consensus 92% Buy
- Earnings Surprise avg 6.3%
- PEG Ratio 0.48
- Earnings Quality (OCF/NI) 1.02
- Share Dilution -1.9%
- Net Margin Trend 7.2% vs 5.1%
- Piotroski F-Score 6/9
Failed (6)
- Gross Margin 12.0%
- P/FCF 65.30
- P/B Ratio 13.66
- CapEx intensity
- Price below Graham Number
- DCF valuation (Overvalued)
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Robert Andrew Mionis | CEO & Chair of the Board | 62 |
| Mr. Mandeep Chawla C.M.A., C.P.A. | Chief Financial Officer | 48 |
| Mr. Yann Louis Etienvre | Chief Operations Officer | 51 |
| Mr. Jason Phillips | Advisor | 50 |
| Mr. Todd C. Cooper | President of Advanced Technology Solutions | 55 |
| Mr. Matthew Pallotta C.A., CPA, M.B.A. | Head of Investor Relations | - |
| Mr. Douglas M. Parker | Chief Legal Officer & Corporate Secretary | 54 |
| Mr. Craig Oberg | Vice President of Investor Relations & Corporate Development | - |
| Ms. Leila Wong C.M.A., CPA | Chief Human Resources Officer | - |
| Mr. Gavin Cato | Head & CTO of Hardware Platform Solutions | 57 |
Audit Risk
1
Board Risk
3
Compensation Risk
2
Shareholder Rights Risk
5
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for CLS, sourced from Markets Gazette.
- 10h agoNEGATIVEIl titolo Celestica è sceso a un supporto cruciale: cosa succederà alle azioni?
Celestica Inc. (CLS) has entered a bear market, plummeting nearly 40% from its year-to-date high to C$407. This sharp decline follows the company's earnings report and a significant dilutive operation. Technical analysis indicates a strong downtrend, with the stock falling below the crucial $450 support level. The Relative Strength Index (RSI) has dropped from 76 to 40, signaling further potential downside. Investors are closely watching AI-related growth prospects, but the immediate outlook remains bearish due to these factors.
- 20d agoPOSITIVECelestica Joins Data Center Funding Rush With $3 Billion Deal
Celestica Inc. is set to raise $3 billion through a new share offering, a strategic move to capitalize on the burgeoning demand for data center infrastructure driven by the artificial intelligence boom. This significant capital infusion positions Celestica to expand its capacity and services, catering to the increasing needs of AI development. The move signals strong growth prospects and investor confidence in the company's ability to leverage the AI revolution, potentially leading to increased market share and profitability. Investors may see this as a positive development, indicating proactive management and a clear path to capitalize on a high-growth sector.
- 20d agoNEUTRALCelestica’s $3 Billion Deal Joins Data Center Funding Rush
Celestica Inc. is planning to raise $3 billion through a new share offering, participating in the significant capital influx directed towards data center expansion. This move is driven by the escalating demand for infrastructure to support the burgeoning artificial intelligence sector. While the capital raise itself is a neutral event, the underlying driver of AI-driven data center growth suggests potential future demand for Celestica's services. Investors will monitor how effectively Celestica deploys this capital and the competitive landscape for data center solutions.
via Markets Gazette