📊 CLS Key Takeaways
Is Celestica Inc. (CLS) a Good Investment?
Celestica exhibits exceptional 28.5% YoY revenue growth with impressive 98.3% EPS expansion in the high-demand PCB/electronics manufacturing sector. However, critically thin margins (net 5.2%, gross 10.8%), high capital intensity consuming 64% of operating cash flow, and weak liquidity (Quick Ratio 0.73x) indicate operational and financial stress that tempers enthusiasm despite strong growth.
Celestica shows strong fundamental momentum, with revenue up 28.5% and net income up 94.5%, indicating that growth is translating into materially higher earnings rather than just higher volume. Profitability is solid for a manufacturing business, balance sheet leverage is manageable, and free cash flow is positive, though relatively modest versus revenue and supported by still-thin gross margins. Overall, the fundamentals point to a high-quality growth phase, but the business remains exposed to execution and margin pressure typical of a low-margin hardware supply chain model.
Why Buy Celestica Inc. Stock? CLS Key Strengths
- Exceptional 28.5% YoY revenue growth capturing structural electronics/tech demand
- Strong 98.3% YoY EPS growth demonstrating earnings leverage from scale
- Positive operating cash flow of $356.3M supporting operations and debt service
- Conservative leverage at 0.36x Debt/Equity ratio provides balance sheet flexibility
- High insider activity (31 Form 4 filings) suggests management confidence in fundamentals
- Rapid revenue and earnings growth with diluted EPS up 98.3% YoY
- Strong profitability improvement, including 8.4% operating margin and 37.6% ROE
- Healthy financial position with positive free cash flow, 1.44x current ratio, and low 0.34x debt-to-equity
CLS Stock Risks: Celestica Inc. Investment Risks
- Critically thin net margin of 5.2% and gross margin of 10.8% indicate limited pricing power or operational inefficiency
- Quick ratio of 0.73x below 1.0 signals liquidity stress without continuous inventory conversion
- Capital expenditure at 64% of operating cash flow constrains free cash flow ($126.8M on $4.0B revenue)
- Cyclical manufacturing sector vulnerable to demand shocks, input cost inflation, and supply chain disruption
- Absence of YoY net income growth metric prevents confirmation of sustainable profitability improvement
- Gross margin of 12.1% and free cash flow margin of 3.7% leave limited room for operational missteps
- Quick ratio of 0.88x suggests continued dependence on efficient working capital management
- Manufacturing-led growth can be cyclical and vulnerable to customer mix, demand swings, or cost pressure
Key Metrics to Watch
- Gross and operating margin expansion as revenue scales - must improve from current 10.8% and 6.7%
- Free cash flow sustainability and capex intensity reduction - monitor if capex moderates below 60% of OCF
- Quick ratio improvement toward 1.0+ - current 0.73x indicates liquidity risk requiring improvement
- Operating margin and gross margin sustainability
- Free cash flow conversion relative to net income
Celestica Inc. (CLS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.1% FCF margin may limit capital allocation flexibility.
CLS Profit Margin, ROE & Profitability Analysis
CLS vs Market Sector: How Celestica Inc. Compares
How Celestica Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Celestica Inc. Stock Overvalued? CLS Valuation Analysis 2026
Based on fundamental analysis, Celestica Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Celestica Inc. Balance Sheet: CLS Debt, Cash & Liquidity
CLS Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CLS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.6B | $86.2M | $0.74 |
| 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.
Celestica Inc. Dividends, Buybacks & Capital Allocation
CLS SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CLS's key strengths?
Claude: Exceptional 28.5% YoY revenue growth capturing structural electronics/tech demand. Strong 98.3% YoY EPS growth demonstrating earnings leverage from scale. ChatGPT: Rapid revenue and earnings growth with diluted EPS up 98.3% YoY. Strong profitability improvement, including 8.4% operating margin and 37.6% ROE.
What are the risks of investing in CLS?
Claude: Critically thin net margin of 5.2% and gross margin of 10.8% indicate limited pricing power or operational inefficiency. Quick ratio of 0.73x below 1.0 signals liquidity stress without continuous inventory conversion. ChatGPT: Gross margin of 12.1% and free cash flow margin of 3.7% leave limited room for operational missteps. Quick ratio of 0.88x suggests continued dependence on efficient working capital management.
What is CLS's revenue and growth?
Celestica Inc. reported revenue of $4.0B.
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 $1.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CLS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Celestica Inc. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CLS stock overvalued or undervalued?
Valuation metrics for CLS: ROE of 10.1% (sector avg: 15%), net margin of 5.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CLS stock in 2026?
Our dual AI analysis gives Celestica Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CLS's free cash flow?
Celestica Inc.'s operating cash flow is $356.3M, with capital expenditures of $229.5M. FCF margin is 3.1%.
How does CLS compare to other Market stocks?
Vs Default sector averages: Net margin 5.2% (avg: 12%), ROE 10.1% (avg: 15%), current ratio 1.26 (avg: 1.8).