Imagine a world where seamless connectivity and advanced technology drive innovation in every sector — that’s the reality Celestica Inc. creates. As a frontrunner in the Hardware, Equipment & Parts industry, Celestica excels in delivering cutting-edge hardware platforms and supply chain solutions that empower businesses across aerospace, healthtech, and cloud services. With a strong reputation for quality and innovation, I now explore whether Celestica’s fundamentals still align with its market valuation and growth aspirations.
Table of contents
Company Description
Celestica Inc. (NYSE: CLS), founded in 1994 and headquartered in Toronto, Canada, is a prominent player in the hardware, equipment, and parts industry. The company operates primarily in North America, Europe, and Asia, delivering innovative hardware platform and supply chain solutions through its two main segments: Advanced Technology Solutions and Connectivity & Cloud Solutions. Celestica’s diverse offerings range from electronics manufacturing and assembly to design, engineering, and supply chain management. With a workforce of approximately 21,914 employees, it serves various sectors, including aerospace, healthcare, and cloud-based services. Celestica’s strategic focus on advanced technology and sustainability reinforces its role in shaping the future of the electronics manufacturing landscape.
Fundamental Analysis
In this section, I will analyze Celestica Inc.’s financial health by examining its income statement, key financial ratios, and dividend payout policy.
Income Statement
The following table summarizes Celestica Inc.’s income statement over the past few years, highlighting key financial metrics related to the company’s performance.
| Metric | 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 |
Over the past five years, Celestica Inc. has demonstrated a robust upward trend in both Revenue and Net Income, with 2024’s revenue reaching 9.65B, a significant increase from 7.96B in 2023. Gross profit margins have improved, reflecting better cost management despite slight increases in operating expenses. The most recent year shows a substantial growth in net income to 428M, indicating effective scaling and efficiency improvements, contributing to a notable rise in EPS to 3.62. Overall, the company’s financial trajectory suggests a strong position moving forward, although investors should remain aware of potential market fluctuations.
Financial Ratios
The table below summarizes key financial ratios for Celestica Inc. (CLS) over the last five years, providing insights into its financial health and performance.
| Ratios | 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% |
| WACC | 10.00% | 9.50% | 8.80% | 8.50% | 8.40% |
| P/E | 17.19 | 13.57 | 7.73 | 14.39 | 25.47 |
| P/B | 0.74 | 0.96 | 0.83 | 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
In the most recent year (2024), Celestica’s ratios exhibit notable improvements, particularly in profitability and efficiency, as evidenced by a net margin of 4.44% and ROE of 22.57%. However, the high P/E ratio of 25.47 may suggest overvaluation, especially against a backdrop of increasing debt levels (D/E at 0.49). While the interest coverage ratio of 11.50 indicates strong ability to meet interest obligations, investors should remain cautious of potential volatility.
Evolution of Financial Ratios
Over the past five years, Celestica has shown a positive trend in profitability and operational efficiency, with net margins and ROE significantly increasing. However, the sharp rise in P/B and P/E ratios indicates a growing valuation, which could warrant caution among investors. The company has managed to maintain a stable current ratio, suggesting good liquidity throughout the period.
Distribution Policy
Celestica Inc. (CLS) does not currently pay dividends, reflecting a reinvestment strategy that prioritizes growth and expansion. This approach is common in high-growth phases, allowing the company to allocate capital towards R&D and acquisitions. Additionally, CLS engages in share buyback programs, which can enhance shareholder value by reducing share count. Ultimately, this strategy appears to support sustainable long-term value creation for shareholders, as it focuses on growth potential and financial stability.
Sector Analysis
Celestica Inc. operates in the Hardware, Equipment & Parts industry, providing advanced technology and supply chain solutions across various sectors, facing competition from key players while leveraging its diverse service offerings.
Strategic Positioning
Celestica Inc. (CLS) holds a significant market position within the hardware, equipment, and parts industry, with a market cap of approximately $35.4B. Its Advanced Technology Solutions and Connectivity & Cloud Solutions segments face competitive pressures from both established players and emerging technologies. Notably, CLS’s diverse product offerings, including data communications infrastructure and power management solutions, allow it to cater to various sectors such as aerospace, energy, and healthtech. However, ongoing technological disruption necessitates continuous innovation to maintain its market share and respond effectively to competitors.
Revenue by Segment
The following chart illustrates the revenue distribution by segment for Celestica Inc. for the fiscal year 2024.
In 2024, the ATS Segment generated $3.16B, representing the sole revenue contributor for Celestica Inc. during this period. This indicates a focused business model, with the ATS Segment driving the majority of revenue. While this concentration can streamline operations and enhance profitability, it also poses risks should this segment underperform in the future. Overall, the performance remains stable, but reliance on a single segment necessitates careful monitoring of market conditions and demand fluctuations.
Key Products
Celestica Inc. offers a diverse range of products that cater to various industries. Below is a table summarizing some of their key products:
| Product | Description |
|---|---|
| Advanced Technology Solutions | Comprehensive hardware platform solutions including design, engineering, and supply chain management services. |
| Connectivity & Cloud Solutions | Infrastructure products such as routers, switches, and data center interconnects tailored for enterprise-level needs. |
| Energy Storage Products | Innovative power inverters and energy storage systems designed for efficiency and sustainability in energy management. |
| Electronic Components | A wide array of components including capacitors, microprocessors, resistors, and memory modules for various applications. |
| After-Market Services | Repair and return services that support the lifecycle of products, ensuring reliability and performance over time. |
These products position Celestica as a key player in the hardware and technology sector, serving a range of industries from aerospace to healthtech.
Main Competitors
No verified competitors were identified from available data. Celestica Inc. holds an estimated market share within the hardware and supply chain solutions sector, primarily operating in North America, Europe, and Asia. The company maintains a competitive position by offering a diverse range of services and products tailored for various industries, including aerospace, defense, and healthtech, which enhances its sector dominance.
Competitive Advantages
Celestica Inc. (CLS) boasts significant competitive advantages through its diverse product offerings and robust supply chain solutions across multiple industries, including aerospace, healthtech, and cloud services. The company’s dual-segment approach—Advanced Technology Solutions and Connectivity & Cloud Solutions—positions it well for future growth. Looking ahead, Celestica is poised to capitalize on emerging opportunities in data center infrastructure and energy storage products, as demand accelerates in these sectors. With a strong focus on innovation and strategic partnerships, I believe the company can further expand its market reach and enhance shareholder value.
SWOT Analysis
This SWOT analysis aims to identify the strengths, weaknesses, opportunities, and threats associated with Celestica Inc. (CLS).
Strengths
- Strong market presence
- Diverse service offerings
- Established client base
Weaknesses
- No recent dividend payments
- High beta indicates volatility
- Dependence on technology sector
Opportunities
- Growth in cloud computing
- Expansion into emerging markets
- Increasing demand for electronic components
Threats
- Intense competition
- Supply chain disruptions
- Economic downturns
The overall SWOT assessment indicates that while Celestica Inc. has significant strengths and opportunities, it must strategically manage its weaknesses and navigate external threats to maintain its market position.
Stock Analysis
Over the past year, Celestica Inc. (CLS) has experienced significant price movements, reflecting a robust trading dynamic characterized by a bullish trend and notable acceleration.
Trend Analysis
Analyzing the stock’s performance over the past two years, CLS has seen a remarkable price change of +950.6%, indicating a bullish trend. The trend is further supported by an acceleration status, suggesting strong upward momentum. The stock reached a notable high of 344.48 and a low of 27.91, with a standard deviation of 76.53, highlighting some volatility in its price movements.
Volume Analysis
In terms of trading volumes over the last three months, CLS has shown an increasing volume trend, with total trading activity amounting to approximately 1.63B shares. Buyer-driven activity dominates the market, with buyers accounting for 66.06% of the total volume. This indicates positive investor sentiment, as recent trading also shows a slight buyer dominance at 55.49% during the recent period from September 7, 2025, to November 23, 2025.
Analyst Opinions
Recent recommendations for Celestica Inc. (CLS) indicate a consensus rating of “Buy” for 2025. Analysts, including those from prominent firms, highlight strong financial metrics, particularly noting a solid return on equity and return on assets, both rated at 5. However, concerns remain regarding the price-to-earnings and price-to-book ratios, which received lower scores of 1. Overall, the positive outlook, bolstered by a B rating and an overall score of 3, suggests that CLS is positioned for growth in the upcoming year.
Stock Grades
Celestica Inc. (CLS) has received recent evaluations from several reputable grading companies, indicating a generally positive outlook for the stock.
| 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 |
The overall trend in grades for Celestica Inc. showcases a mix of stability and upgrades, with a notable upgrade to “Buy” from Citigroup. Several firms, including Barclays and JP Morgan, continue to maintain their “Overweight” ratings, reflecting confidence in the stock’s performance.
Target Prices
The consensus among analysts indicates a solid target range for Celestica Inc.
| Target High | Target Low | Consensus |
|---|---|---|
| 440 | 300 | 362.4 |
Overall, analysts expect Celestica Inc.’s stock to trend towards the consensus price of 362.4, reflecting a balanced outlook between the high and low targets.
Consumer Opinions
Consumer sentiment around Celestica Inc. (CLS) reflects a mixed bag, showcasing both appreciation and concerns among its clientele.
| Positive Reviews | Negative Reviews |
|---|---|
| “Excellent product quality and reliability!” | “Customer service response times are slow.” |
| “Innovative solutions that meet our needs.” | “Pricing seems higher than competitors.” |
| “Strong partnership approach and support.” | “Inconsistent delivery schedules.” |
Overall, consumer feedback highlights Celestica’s strong product quality and innovation as key strengths, while slow customer service and pricing concerns emerge as notable weaknesses.
Risk Analysis
In evaluating Celestica Inc. (CLS), it’s crucial to consider potential risks that could impact the company’s performance. Below is a summary of key risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Fluctuations | Changes in demand for technology products | High | High |
| Supply Chain Disruptions | Delays in component availability | Medium | High |
| Regulatory Changes | New regulations affecting manufacturing | Medium | Medium |
| Competitive Pressure | Increased competition in the tech sector | High | Medium |
| Currency Risk | Fluctuations in foreign exchange rates | Medium | Medium |
The most pressing risks for Celestica are market fluctuations and competitive pressures, given the tech industry’s volatility and rapid advancements. Understanding and managing these risks is essential for maintaining a robust investment strategy.
Should You Buy Celestica Inc.?
Celestica Inc. has a positive net margin of 4.44%, indicating profitability, while the company maintains a manageable debt level with a debt-to-equity ratio of 0.49. The fundamentals have shown growth, with revenue increasing from 7.25B in 2022 to 11.04B in 2025, and it currently holds a rating of B.
A. Favorable signals There are no favorable signals.
B. Unfavorable signals The net margin is 4.44%, which is above zero, but the return on invested capital (ROIC) is 15.96%, while the weighted average cost of capital (WACC) stands at 10.71%. This indicates that the company is creating value. However, the long-term trend has shown significant volatility with a high beta of 1.51. Additionally, the recent seller volume of 78.06M is greater than the recent buyer volume of 97.32M, indicating weakness in demand.
C. Conclusion Given the current situation, it might be prudent to wait for stronger buying signals before considering an investment. The volatility of the stock and the recent trading patterns suggest caution.
High levels of volatility and a significant gap between buyer and seller volume contribute to the risks surrounding this stock.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Celestica’s stock tumbles, while broader market also sees red – Seeking Alpha (Nov 13, 2025)
- News Flash: Analysts Just Made A Meaningful Upgrade To Their Celestica Inc. (TSE:CLS) Forecasts – Yahoo Finance (Nov 01, 2025)
- Celestica (CLS) Price Target Increased by 29.30% to 248.47 – Nasdaq (Nov 17, 2025)
- Celestica Inc. Stock (CLS) Opinions on Citigroup Upgrade – Quiver Quantitative (Nov 13, 2025)
- Should You Join the CLS Bandwagon on Rising Earnings Estimates? – sharewise.com (Nov 18, 2025)
For more information about Celestica Inc., please visit the official website: celestica.com
