The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 37.8x | 20.8x | Bottom tier | |
Growth | 92 | 36.7% | 6.1% | Top tier | |
Quality | 59 | 40.8% | 6.6% | Around median | |
Safety | 76 | 0.3x | 0.7x | Top tier | |
Capital Return | 39 | — | 2.02% | Bottom tier | |
Momentum | 69 | 163.8% | 4.1% | Top tier | |
Sentiment | 52 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Celestica Inc. (CLS) is a leading partner in design, manufacturing, and Hardware Platform Solutions (HPS) for complex electronics, serving the advanced technology and cloud computing sectors. The company generates its revenues through two main segments: the Connectivity & Cloud Solutions (CCS) segment, which focuses on data centers and communications networks for hyperscale cloud customers, and the Advanced Technology Solutions (ATS) segment, which serves aerospace and defense, healthcare, and industrial and manufacturing equipment.
During the first quarter of fiscal year 2026, Celestica achieved strong record results as total revenues jumped by 53% to reach $4.05 billion compared to the same quarter of the previous year, exceeding the midpoint of the company's guidance range. This growth was driven by the exceptional performance of the CCS segment, which recorded revenues of $3.24 billion (representing 80% of total revenues), while the ATS segment's revenues reached approximately $806 million (representing 20% of revenues). On the profitability front, the company recorded a record adjusted operating margin of 8.0%, GAAP net income of $212.3 million, and adjusted earnings per share (EPS) of $2.16, exceeding the upper limit of previous expectations.
The company's Hardware Platform Solutions (HPS) business showed strong growth of 63%, with revenues reaching $1.7 billion, capturing 42% of total company revenues, thanks to the acceleration of network transition programs to 800G speeds. In contrast, the ATS segment saw flat year-over-year revenues, but achieved a tangible improvement in its operating margin, which rose by 100 basis points to reach 6.0% due to product portfolio optimization and strategic restructuring efforts.
Celestica Inc. (CLS) stock has traded within a wide 52-week range between $127.2 and $474.03, supported by positive analyst sentiment with a consensus Buy rating and an average price target of $459 (ranging from a low of $430 to a high of $510). The stock currently trades below the analysts' average price target, reflecting market optimism regarding the company's ability to achieve its upgraded 2026 financial targets and the strong growth expected for 2027.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Celestica's management significantly raised its 2026 financial guidance driven by strong demand; the annual revenue target was increased from $17 billion to $19 billion, representing 53% year-over-year growth. The company also raised its adjusted EPS guidance to $10.15 compared to $8.75 in the previous guidance, alongside raising the target operating margin to 8.1% and confirming free cash flow generation of $500 million.
Celestica announced in March 2026 its collaboration with AMD to design and manufacture a custom network switch for the Helios rack scale AI architecture. This collaboration aims to leverage Celestica's advanced Ethernet expertise to support the deployment of this cutting-edge platform. Development efforts are currently well underway, with the company expecting to deliver the first samples and units of this product before the end of 2026.
The first quarter of 2026 experienced some logistical constraints and component shortages, specifically in an AI/ML compute program for a hyperscale cloud customer, leading to a slight delay in shipments. Management clarified that this issue was not related to demand volume but rather to material availability, and it has been fully resolved with expectations to make up the difference in subsequent quarters. Current bottlenecks in the market are concentrated around custom silicon, memory, and printed circuit boards of 40 layers or more.
Automated analysis for informational purposes only — not investment advice.
Celestica plans to significantly increase its capital expenditures to support newly won projects; CFO Mandeep Chawla set an initial estimate for 2027 CapEx at $1.5 billion, compared to $1.0 billion for 2026. These investments are directed toward expanding manufacturing capacity and constructing new sites, particularly in Thailand and Texas. These investment decisions are directly tied to specific contracts and programs that guarantee strong returns on investment.