📊 CLS Key Takeaways
Investment Thesis
Celestica demonstrates exceptional operational execution with 28.5% revenue growth and net income nearly doubling YoY, driven by strong margin expansion and robust free cash flow generation. The company maintains healthy balance sheet metrics with moderate leverage (0.34x D/E) and solid liquidity, supported by 659.5M in operating cash flow and 458.3M in free cash flow, indicating sustainable growth trajectory.
CLS Strengths
- Exceptional net income growth of 94.5% YoY significantly outpacing 28.5% revenue growth demonstrates operating leverage and margin expansion
- Strong free cash flow generation of 458.3M with 3.7% FCF margin provides capital flexibility for debt reduction, investments, or shareholder returns
- Outstanding returns on equity (37.6%) and assets (11.5%) indicate highly efficient capital deployment and operational excellence
- Moderate leverage at 0.34x D/E ratio with 750.5M long-term debt provides balance sheet strength and refinancing flexibility
- Significant insider activity with 33 Form 4 filings in last 90 days suggests management confidence in business trajectory
CLS Risks
- Quick ratio of 0.88x indicates potential near-term liquidity constraints despite adequate current ratio, requiring monitoring of working capital management
- Operating margin of 8.4% and net margin of 6.7% remain compressed relative to profitability growth, suggesting pricing power or operational efficiency may be at limits
- Revenue concentration in printed circuit boards sector (SIC 3672) exposes company to cyclical semiconductor and electronics manufacturing demand
- Missing interest coverage ratio data prevents full assessment of debt service capacity, particularly important given 750.5M long-term debt load
- Gross margin of only 12.1% is thin and vulnerable to input cost inflation, supply chain disruptions, or competitive pricing pressures
Key Metrics to Watch
- Operating margin trend - monitor if 8.4% can expand further or if margin expansion has peaked
- Free cash flow sustainability - track if 458.3M FCF can be maintained with ongoing capex requirements of 201.2M
- Days sales outstanding and inventory turnover - assess working capital efficiency given thin quick ratio of 0.88x
- Gross margin stability - critical indicator of pricing power and manufacturing cost control in competitive PCB sector
CLS Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.7% FCF margin may limit capital allocation flexibility.
CLS Profitability Ratios
CLS vs Default Sector
How CELESTICA INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CLS Balance Sheet & Liquidity
CLS 5-Year Financial Trend
5-Year Trend Summary: CELESTICA INC's revenue has grown significantly by 28% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.03 reflects profitable operations.
CLS Growth Metrics (YoY)
CLS Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.5B | $89.5M | $0.75 |
| Q2 2025 | $2.4B | $95.0M | $0.80 |
| Q1 2025 | $2.2B | $86.2M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CLS Capital Allocation
CLS SEC Filings
Access official SEC EDGAR filings for CELESTICA INC (CIK: 0001030894)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CLS
What is the AI rating for CLS?
CELESTICA INC (CLS) has an AI rating of STRONG BUY with 82% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLS's key strengths?
Exceptional net income growth of 94.5% YoY significantly outpacing 28.5% revenue growth demonstrates operating leverage and margin expansion. Strong free cash flow generation of 458.3M with 3.7% FCF margin provides capital flexibility for debt reduction, investments, or shareholder returns.
What are the risks of investing in CLS?
Quick ratio of 0.88x indicates potential near-term liquidity constraints despite adequate current ratio, requiring monitoring of working capital management. Operating margin of 8.4% and net margin of 6.7% remain compressed relative to profitability growth, suggesting pricing power or operational efficiency may be at limits.
What is CLS's revenue and growth?
CELESTICA INC reported revenue of $12.4B.
Does CLS pay dividends?
CELESTICA INC does not currently pay dividends.
Where can I find CLS SEC filings?
Official SEC filings for CELESTICA INC (CIK: 0001030894) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CLS's EPS?
CELESTICA INC has a diluted EPS of $7.16.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.