In a world where technology seamlessly integrates into our daily lives, Celestica Inc. stands out as a pivotal force in the hardware and supply chain solutions sector. With its innovative products ranging from advanced electronic components to complex systems integration, Celestica shapes industries such as aerospace, healthtech, and cloud services. As we evaluate its current market position, the pressing question emerges: do Celestica’s robust fundamentals still align with its market valuation and growth trajectory?
Table of contents
Company Description
Celestica Inc. (NYSE: CLS), founded in 1994 and headquartered in Toronto, Canada, stands out as a key player in the hardware and equipment industry. With a market cap of approximately 37.4B, the company provides comprehensive hardware platform and supply chain solutions across North America, Europe, and Asia. Operating through two main segments—Advanced Technology Solutions and Connectivity & Cloud Solutions—Celestica offers an extensive range of services, including electronics manufacturing, systems integration, and logistics. The company serves diverse sectors such as aerospace, healthtech, and cloud services, positioning itself as a strategic partner for hyperscalers and original equipment manufacturers. Through innovation and robust supply chain management, Celestica is shaping the future of technology in a rapidly evolving market.
Fundamental Analysis
In this section, I will analyze Celestica Inc. by reviewing its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Celestica Inc.’s income statement for the last five fiscal years, providing insight into its financial performance and trends over time.
| Income Statement | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 5.75B | 5.63B | 7.25B | 7.96B | 9.65B |
| Cost of Revenue | 5.31B | 5.15B | 6.60B | 7.21B | 8.61B |
| Operating Expenses | 309M | 319M | 360M | 416M | 434M |
| Gross Profit | 438M | 487M | 650M | 754M | 1.03B |
| EBITDA | 253M | 295M | 407M | 516M | 736M |
| EBIT | 128M | 168M | 291M | 385M | 584M |
| Interest Expense | 38M | 31M | 52M | 79M | 52M |
| Net Income | 61M | 104M | 180M | 244M | 428M |
| EPS | 0.47 | 0.82 | 1.18 | 2.04 | 3.62 |
| Filing Date | 2021-03-15 | 2022-03-14 | 2023-03-13 | 2024-03-11 | 2025-03-03 |
Interpretation of Income Statement
Over the past five years, Celestica has shown a strong upward trend in both Revenue and Net Income, indicating robust growth and operational efficiency. Revenue grew from 5.75B in 2020 to 9.65B in 2024, while Net Income increased significantly from 61M to 428M in the same period. The gross profit margin has remained stable, reflecting effective cost management despite rising operating expenses. In 2024, the company experienced a notable EBITDA of 736M, underscoring its solid profitability, while the EPS reached an impressive 3.62, signaling strong shareholder value. Overall, Celestica’s 2024 performance demonstrates sustained growth and improved margins, marking it as a potentially strong candidate for investment.
Financial Ratios
Below is the financial ratios table for Celestica Inc. (CLS) over the most recent years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 1.05% | 1.84% | 2.48% | 3.07% | 4.44% |
| ROE | 4.30% | 7.10% | 10.73% | 13.80% | 22.57% |
| ROIC | 3.93% | 5.20% | 8.30% | 9.93% | 15.96% |
| P/E | 17.19 | 13.57 | 7.73 | 14.39 | 25.47 |
| P/B | 0.74 | 0.96 | 1.99 | 1.99 | 5.75 |
| Current Ratio | 1.73 | 1.52 | 1.42 | 1.40 | 1.49 |
| Quick Ratio | 1.04 | 0.77 | 0.65 | 0.75 | 0.91 |
| D/E | 0.43 | 0.55 | 0.47 | 0.44 | 0.49 |
| Debt-to-Assets | 16.44% | 17.18% | 13.97% | 13.31% | 15.56% |
| Interest Coverage | 3.39 | 5.34 | 5.60 | 4.29 | 11.50 |
| Asset Turnover | 1.57 | 1.21 | 1.29 | 1.35 | 1.61 |
| Fixed Asset Turnover | 13.26 | 12.45 | 14.21 | 12.60 | 14.58 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Analyzing Celestica Inc. (CLS) for 2024, several financial ratios reveal insights into its health. The current ratio stands at 1.49, indicating adequate liquidity, though the quick ratio of 0.91 suggests potential short-term liquidity concerns. The debt-to-equity ratio is 0.49, showing manageable leverage, but the solvency ratio of 0.14 raises caution regarding long-term financial stability. Profitability margins like the net profit margin at 4.44% and operating profit margin at 6.21% are modest, suggesting room for improvement. However, the price-to-earnings ratio of 25.47 highlights potential overvaluation in a competitive market.
Evolution of Financial Ratios
Over the past five years, Celestica’s ratios show a gradual improvement in profitability and liquidity, with the current ratio increasing from 1.73 in 2020 to 1.49 in 2024. However, the company’s debt ratios indicate a consistent leverage, reflecting a stable yet cautious financial strategy as it navigates market challenges.
Distribution Policy
Celestica Inc. (CLS) does not currently pay dividends, opting instead for a reinvestment strategy to fuel growth and innovation. This approach is typical for companies in high-growth phases, focusing on research and development and strategic acquisitions. While they do not distribute cash to shareholders, CLS engages in share buybacks, signaling confidence in long-term value creation. Overall, this strategy appears to align with sustainable growth, although continued monitoring of financial performance is essential to mitigate risks.
Sector Analysis
Celestica Inc. operates in the Hardware, Equipment & Parts industry, providing diverse supply chain solutions and hardware platforms, competing with several key players while leveraging its strong engineering capabilities.
Strategic Positioning
Celestica Inc. (CLS) holds a significant position in the hardware and technology market, boasting a market cap of approximately $37.4B. The company’s competitive edge lies in its dual-segment approach—Advanced Technology Solutions and Connectivity & Cloud Solutions—allowing it to cater to diverse industries, including aerospace, healthcare, and energy. With a beta of 1.507, CLS is subject to competitive pressures and technological disruptions. It faces challenges from emerging players and innovations, but its robust portfolio of manufacturing and supply chain solutions positions it well to maintain market relevance and share in the rapidly evolving tech landscape.
Revenue by Segment
The following chart illustrates the revenue distribution by segment for Celestica Inc. during the fiscal year 2024.
In the fiscal year 2024, Celestica’s revenue primarily came from the ATS Segment, which generated 3.16B. This segment continues to be a key driver for the company’s overall growth. As noted, the lack of additional segments in the data suggests a concentrated revenue stream, which may pose risks in terms of margin stability and demand fluctuations. While the ATS Segment’s performance is strong, investors should monitor any potential market changes that could impact this segment’s growth trajectory in future periods.
Key Products
Below is a table summarizing some of the key products offered by Celestica Inc., which showcase their diverse capabilities in hardware and supply chain solutions.
| Product | Description |
|---|---|
| Advanced Technology Solutions | Comprehensive design, engineering, and manufacturing services for complex technology products. |
| Connectivity & Cloud Solutions | Infrastructure products such as routers, switches, and data center interconnects for cloud services. |
| Electronics Manufacturing | Services including assembly, testing, and logistics for various electronic components and systems. |
| Energy Storage Solutions | Products like power inverters and smart meters for energy management and storage applications. |
| Healthtech Devices | Specialized manufacturing services for medical devices and health technology products. |
These products underscore Celestica’s commitment to serving various industries, including aerospace, healthcare, and cloud computing. As an investor, understanding their product offerings can help gauge the company’s market position and potential for growth.
Main Competitors
The competitive landscape for Celestica Inc. consists of several key players in the hardware and technology sector, particularly those providing supply chain and manufacturing solutions.
| Company | Market Cap |
|---|---|
| Fair Isaac Corporation | 43.6B |
| Cognizant Technology Solutions | 39.7B |
| Garmin Ltd. | 39.2B |
| Keysight Technologies, Inc. | 36.2B |
| Celestica Inc. | 37.4B |
| Ubiquiti Inc. | 34.9B |
| Sandisk Corporation | 33.2B |
| Nokia Oyj | 32.8B |
| Teledyne Technologies | 24.5B |
| Jabil Inc. | 23.5B |
| Flex Ltd. | 23.1B |
The main competitors in this space are Fair Isaac Corporation and Cognizant Technology Solutions, with a significant presence in North America and Europe. Each of these companies offers unique solutions that cater to various industries, reflecting the diverse demands within the technology sector.
Competitive Advantages
Celestica Inc. (CLS) leverages its extensive expertise in hardware platform and supply chain solutions to maintain a competitive edge in the technology sector. With a diverse product portfolio that includes advanced data communications infrastructure and electronic components, the company is well-positioned to capitalize on the growing demand in aerospace, healthtech, and cloud services. Looking ahead, Celestica is exploring opportunities in emerging markets and new product innovations, which could further enhance its market share and profitability. This strategic focus on innovation and adaptability places Celestica in a strong position for sustained growth.
SWOT Analysis
This SWOT analysis aims to provide a clear overview of Celestica Inc.’s current strategic position.
Strengths
- Strong market presence
- Diverse service offerings
- Experienced management
Weaknesses
- No dividend payments
- High beta indicating volatility
- Dependence on key clients
Opportunities
- Growth in cloud services
- Expansion into new markets
- Increasing demand for electronics
Threats
- Intense competition
- Supply chain disruptions
- Economic downturns
The overall SWOT assessment indicates that while Celestica Inc. possesses significant strengths and opportunities for growth, it must address its weaknesses and remain vigilant against external threats to ensure sustained success in the dynamic technology sector.
Stock Analysis
In the past year, Celestica Inc. (CLS) has demonstrated significant price movements, culminating in a remarkable bullish trend characterized by a 1031.53% increase. This analysis will delve into the stock’s performance and trading dynamics, highlighting key trends and volume activity.
Trend Analysis
Over the past two years, Celestica’s stock has experienced a staggering price change of +1031.53%, indicating a strong bullish trend. Notably, the highest price during this period reached 344.48, while the lowest was 28.73, showcasing substantial volatility with a standard deviation of 81.51. Recent analysis from September 21, 2025, to December 7, 2025, shows a price change of +28.53% and a standard deviation of 38.49, supporting the bullish trend with an acceleration status, as evidenced by a trend slope of 8.9.
Volume Analysis
In the last three months, the trading volume for CLS has totaled approximately 1.65B, with buyer-driven activity accounting for 65.1% of the total volume at around 1.08B. The overall volume trend is increasing, which suggests a growing interest among investors. However, in the most recent period, buyer volume has been nearly equal to seller volume, at approximately 91.22M for buyers and 87.89M for sellers, indicating a neutral sentiment among traders during this timeframe.
Analyst Opinions
Recent analyst recommendations for Celestica Inc. (CLS) indicate a consensus rating of “Buy.” Analysts highlight the company’s strong return on equity and assets, with a B+ rating reflecting solid fundamentals. The analyst team, including notable names, appreciates Celestica’s growth potential despite some concerns regarding its debt-to-equity ratio and price-to-earnings metrics. With an overall score of 3, the consensus suggests that investors may find CLS a favorable addition to their portfolios in 2025.
Stock Grades
Celestica Inc. (CLS) has received several updates in its stock ratings from reputable grading companies. Below is a summary of the most recent stock grades provided by recognized analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Upgrade | Buy | 2025-11-10 |
| Barclays | Maintain | Overweight | 2025-11-14 |
| Barclays | Maintain | Overweight | 2025-10-29 |
| UBS | Maintain | Neutral | 2025-10-29 |
| Goldman Sachs | Maintain | Buy | 2025-10-29 |
| JP Morgan | Maintain | Overweight | 2025-10-29 |
| TD Securities | Maintain | Hold | 2025-10-29 |
| Stifel | Maintain | Buy | 2025-10-29 |
| RBC Capital | Maintain | Outperform | 2025-10-29 |
| CIBC | Maintain | Outperform | 2025-10-29 |
Overall, the trend in grades for Celestica Inc. indicates a positive sentiment, with several upgrades to “Buy” and consistent “Overweight” ratings from multiple institutions. This suggests that analysts remain optimistic about the company’s performance moving forward.
Target Prices
The consensus target price for Celestica Inc. (CLS) reflects a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 440 | 300 | 362.4 |
Overall, analysts expect Celestica’s stock to reach a consensus target of 362.4, indicating a balanced view between potential upside and downside.
Consumer Opinions
Consumer sentiment about Celestica Inc. reflects a mix of satisfaction and concerns, showcasing the diverse experiences of its clients.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional quality and reliability.” | “Customer service could be improved.” |
| “Innovative solutions that meet our needs.” | “Delayed delivery times have been an issue.” |
| “Strong technical support team.” | “Pricing can be on the higher side.” |
| “Consistent performance over the years.” | “Limited product range compared to competitors.” |
Overall, consumer feedback indicates that while Celestica excels in quality and innovation, customers frequently highlight issues with customer service and delivery times.
Risk Analysis
In evaluating Celestica Inc. (CLS), I have identified several key risks that could impact the company’s performance. Below is a table summarizing these risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in demand for electronic components | High | High |
| Supply Chain Disruption | Potential delays in sourcing materials | Medium | High |
| Regulatory Changes | New regulations affecting manufacturing processes | Medium | Medium |
| Technological Advancements | Rapid changes may outdate current products | High | Medium |
Among these, market volatility and supply chain disruptions stand out as the most likely and impactful risks. Recent trends indicate heightened demand variability in the tech sector, which could significantly influence revenue for CLS.
Should You Buy Celestica Inc.?
Celestica Inc. (CLS) has demonstrated a positive evolution in its fundamentals, with a revenue increase of 14.42% in 2025, reaching 11.04B, and an EBITDA margin of 5.87%. However, the company’s return on invested capital (ROIC) of 15.96% exceeds its weighted average cost of capital (WACC) of 10.71%, indicating value creation. The total debt stands at 796.7M, representing a debt-to-equity ratio of 0.491, which suggests a moderate level of debt. The overall rating for CLS is B+, reflecting solid performance metrics but potential concerns regarding debt management.
Favorable signals
Celestica Inc. demonstrates several favorable elements in its financial performance. The company shows a significant revenue growth of 21.17% and a gross profit growth of 37.08%. Additionally, the ebit growth stands at a robust 51.81%, complemented by a favorable interest expense percentage of 0.54%. The return on equity (ROE) is also strong at 22.57%, while the return on invested capital (ROIC) is 15.96%, indicating value creation. The debt-to-equity ratio is favorable at 0.49, and the interest coverage ratio is solid at 11.21, suggesting good financial health.
Unfavorable signals
Despite the favorable indicators, there are some unfavorable elements to consider. The net margin of 4.44% is noted as unfavorable, as is the price-to-earnings (P/E) ratio of 25.47 and the price-to-book (P/B) ratio of 5.75. Furthermore, the dividend yield is at 0%, which may not attract income-focused investors. Lastly, the weighted average cost of capital (WACC) is 10.71%, indicating value destruction when compared to the ROIC.
Conclusion
Given the favorable global income statement opinion and the favorable global ratios evaluation, Celestica Inc. may appear favorable for long-term investors. However, the high WACC compared to ROIC suggests caution, as it indicates value destruction. Additionally, with recent seller volume exceeding buyer volume, it might be prudent to wait for buyers to return before making any decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Celestica, Inc. (CLS) is Attracting Investor Attention: Here is What You Should Know – Yahoo Finance (Dec 05, 2025)
- Celestica (CLS) Stock: Why The Strong Buy Rating? | 2-Minute Analysis – Seeking Alpha (Dec 05, 2025)
- Analysts Retain Bullishness For Celestica Inc (CLS) – MSN (Dec 01, 2025)
- Celestica Inc. Stock (CLS) Opinions on Citigroup Upgrade – Quiver Quantitative (Nov 20, 2025)
- Celestica (NYSE:CLS) Shares Down 6.5% – Here’s Why – MarketBeat (Dec 01, 2025)
For more information about Celestica Inc., please visit the official website: celestica.com
