# Celestica (CLS.TO)

Canonical: https://gigainvestors.com/s/CLS.TO

Analysis as of: 2026-10-16T07:34:04.456Z. Financial observations: FY1997–FY2026.

Listing currency: CAD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 446.70 per share; close as of 2026-10-15.

Estimated value: low CAD 66.88 per share, central CAD 94.47 per share, high CAD 110.53 per share. Buy at or below the central value CAD 94.47 per share. Valuation as of 2026-10-16T07:34:04.456Z; scenarios are not confidence intervals.

Expected annual return: 4.5% at the stated quote. About 4.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.03×

- FY2020: 0.02×

- FY2021: 0.03×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.06×

- FY2025: 0.09×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.6%

- ROIC, second-lowest year: 7.2%

- Typical minus recent gross margin: -2.6 pp

- Typical gross margin (annual median): 8.1%

- Recent gross margin (lower of latest and 3-year median): 10.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.4%

- ROIC including acquisitions, ten-year median: 7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.6%

- FY2017: 11.0%

- FY2018: 7.2%

- FY2019: 7.6%

- FY2020: 6.4%

- FY2021: 8.3%

- FY2022: 12.3%

- FY2023: 14.5%

- FY2024: 25.0%

- FY2025: 41.2%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.8B

- Net income, five-year total: $1.8B

- Return on incremental invested capital: 39.2%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 12.2 pp

- Working capital / revenue, final three-year average: 27.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.45×

- FY2022: 0.86×

- FY2023: 0.88×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 11.0% vs 25.0%

- Per-share earnings: 0.73 to 3.61 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -2.2%

- Ordinary dilution, 5-year annual growth: -2.1%

- Market cap gain: $31B

- Cumulative retained earnings: $2.0B

- Diluted shares, 10-year annual growth: -2.2%

- Diluted shares, 5-year annual growth: -2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 22.2%

- Per-share value change: $2.88

- Per-share value, starting three-year median: $0.73

- Per-share value, ending three-year median: $3.61

- Buybacks concentrated in cheaper years (correlation): 0.59

- Average buyback yield: 3.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $729M

- Cumulative net income, 10 years: $2.3B

- ROIC, first three-year median: 11.0%

- ROIC, last three-year median: 25.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.96

- FY2017: $0.73

- FY2018: $0.72

- FY2019: $0.55

- FY2020: $0.47

- FY2021: $0.83

- FY2022: $1.47

- FY2023: $2.03

- FY2024: $3.61

- FY2025: $7.16

### accounting: pass

- Sloan accruals: 2.4%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.79×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.27×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.2%

- FY2017: -0.7%

- FY2018: 1.8%

- FY2019: -7.7%

- FY2020: -4.9%

- FY2021: -2.6%

- FY2022: -0.6%

- FY2023: -1.4%

- FY2024: -0.8%

- FY2025: 2.4%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 27% a year for ten years · sales +25.9%

Story as of 2026-10-16T09:59:58.961Z; price observation 2026-10-15.

Price needs cash profits to grow 27% a year for ten years

- 2025-04-28: Celestica (TSX:CLS) Raises Full-Year Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/celestica-tsx-cls-raises-full-172737737.html))

- 2025-05-08: Celestica (TSX:CLS) Raises 2025 Earnings Guidance with 33% Stock Surge Over Last Month ([finance.yahoo.com](https://finance.yahoo.com/news/celestica-tsx-cls-raises-2025-172521304.html))

- 2025-10-27: Celestica shares soar as AI demand fuels earnings beat, raised outlook ([finance.yahoo.com](https://finance.yahoo.com/news/celestica-shares-soar-ai-demand-212006967.html))

- 2026-03-01: Celestica’s AI Data Center Growth Fuels Beats And Higher 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/celestica-ai-data-center-growth-050757154.html))

- 2026-04-28: Celestica Surpasses Q1 Earnings Estimates on Solid CCS Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/celestica-surpasses-q1-earnings-estimates-134500463.html))

- 2026-10-07: Why Celestica (TSX:CLS) Is Up 6.3% After Highlighting AI Cloud Demand And Investor Recognition ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/why-celestica-tsx-cls-6-042749844.html))

### Sales · FY2025–2026

sales +25.9%; source https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm; observed 2026-02-27.

- FY2017: $6.1B 

- FY2018: $6.6B 

- FY2019: $5.9B 

- FY2020: $5.7B 

- FY2021: $5.6B 

- FY2022: $7.3B 

- FY2023: $8.0B 

- FY2024: $9.6B 

- FY2025: $12B 

- FY2026: $16B 

### Gross margin · FY2025

gross margin 12.1%; source https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm; observed 2026-02-27.

- FY2016: 7.1% 

- FY2017: 6.8% 

- FY2018: 6.5% 

- FY2019: 6.5% 

- FY2020: 7.6% 

- FY2021: 8.6% 

- FY2022: 9.0% 

- FY2023: 9.5% 

- FY2024: 10.7% 

- FY2025: 12.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are USD 12.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); FY2025: revenue 12390900000; grossProfit 1494100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CLS.TO: Celestica Inc., together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally. It operates through two segments, Advanced Technology Solutions, and Connectivity and Cloud Solutions. The company offers a range of product manufacturing and related supply chain services, including design and development, new product introduction, engineering services, component sourcing, electronics manufacturing and assembly, testing, mechanical assembly, systems integration, precision machining, logistics, asset management, product licensing, and after-market repair and return services. It also provides hardware platform solutions, which includes development of infrastructure platforms, and hardware and software design solutions and services, including open-source software that can be used as-is or customized for specific applications; and management of program, including design and supply chain, manufacturing, and after-market support, including IT asset disposition and asset management services. The company offers its products and services to original equipment manufacturers, and cloud-based and other service providers, including hyperscalers, and other companies in aerospace and defense, industrial, HealthTech, capital equipment, communications, and enterprise markets. The company has a strategic collaboration with Advanced Micro Devices, Inc. for the development of Helios, a rack-scale AI platform. The company was incorporated in 1994 and is headquartered in Toronto, Canada.

### Why customers stay

Margins ranged from 9.5% to 12.1% during 2023–25; it earns 11.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 10.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.14602710670428862],[2017,0.10954027683941976],[2018,0.07210690544023877],[2019,0.07570417252587525],[2020,0.06369783645272263],[2021,0.08283839884072082],[2022,0.12328866441044536],[2023,0.14505705576731506],[2024,0.24986387067385735],[2025,0.41210312632930957]]; median 0.11641447062493257. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 9% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); Gross margin observations: [[2021,0.08642873622375637],[2022,0.08961379310344827],[2023,0.09472428086923754]]; range within 2 percentage points.

### Where the cash goes

Spends 3.1% of cash earnings on expansion; earns 39.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2016: growth capex 0; upkeep 64100000; owner earnings 149800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 5154025.476126641; upkeep 97445974.52387336; owner earnings 84554025.47612664. Growth capex / owner earnings = 0.06095541220071008.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2018: growth capex 0; upkeep 82200000; owner earnings 105800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 80500000; owner earnings 125200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2020: growth capex 0; upkeep 52800000; owner earnings 107960000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 52200000; owner earnings 150280000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 109000000; owner earnings 154520000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 125100000; owner earnings 214800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 19000000; upkeep 151900000; owner earnings 428000000. Growth capex / owner earnings = 0.04439252336448598.

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); FY2025: growth capex 25500000; upkeep 175700000; owner earnings 832500000. Growth capex / owner earnings = 0.03063063063063063.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 0.3922982504969896, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 153400000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CLS.TO SharesStats.PercentInsiders = 0.97 percentage points; cache date 2026-10-16.

### What could break it

"We are dependent on a limited number of customers and end markets" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm (filed 2026-02-27); We are dependent on a limited number of customers and end markets

### What the price says

The price assumes cash profits grow 27% yearly over ten years; actual growth was 30.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate 0.38306780847943944. Price 446.7; FX 1.4190435646374344; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.4986225895316804 → FY2025 7.164371772805508. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 15.87 per share

- 2016-11: CAD 16.30 per share

- 2016-12: CAD 15.91 per share

- 2017-01: CAD 18.07 per share

- 2017-02: CAD 17.55 per share

- 2017-03: CAD 19.34 per share

- 2017-04: CAD 19.45 per share

- 2017-05: CAD 18.57 per share

- 2017-06: CAD 17.62 per share

- 2017-07: CAD 14.82 per share

- 2017-08: CAD 14.33 per share

- 2017-09: CAD 15.44 per share

- 2017-10: CAD 12.95 per share

- 2017-11: CAD 14.00 per share

- 2017-12: CAD 13.18 per share

- 2018-01: CAD 12.43 per share

- 2018-02: CAD 13.97 per share

- 2018-03: CAD 13.33 per share

- 2018-04: CAD 14.78 per share

- 2018-05: CAD 15.61 per share

- 2018-06: CAD 15.63 per share

- 2018-07: CAD 15.38 per share

- 2018-08: CAD 16.05 per share

- 2018-09: CAD 13.99 per share

- 2018-10: CAD 13.66 per share

- 2018-11: CAD 13.66 per share

- 2018-12: CAD 11.96 per share

- 2019-01: CAD 13.06 per share

- 2019-02: CAD 12.11 per share

- 2019-03: CAD 11.29 per share

- 2019-04: CAD 9.55 per share

- 2019-05: CAD 8.50 per share

- 2019-06: CAD 8.94 per share

- 2019-07: CAD 9.39 per share

- 2019-08: CAD 8.64 per share

- 2019-09: CAD 9.50 per share

- 2019-10: CAD 9.54 per share

- 2019-11: CAD 10.33 per share

- 2019-12: CAD 10.77 per share

- 2020-01: CAD 11.98 per share

- 2020-02: CAD 8.46 per share

- 2020-03: CAD 4.94 per share

- 2020-04: CAD 8.69 per share

- 2020-05: CAD 9.38 per share

- 2020-06: CAD 9.32 per share

- 2020-07: CAD 11.06 per share

- 2020-08: CAD 10.39 per share

- 2020-09: CAD 9.20 per share

- 2020-10: CAD 7.83 per share

- 2020-11: CAD 9.78 per share

- 2020-12: CAD 10.27 per share

- 2021-01: CAD 10.37 per share

- 2021-02: CAD 10.55 per share

- 2021-03: CAD 10.50 per share

- 2021-04: CAD 10.24 per share

- 2021-05: CAD 10.36 per share

- 2021-06: CAD 9.72 per share

- 2021-07: CAD 11.03 per share

- 2021-08: CAD 11.97 per share

- 2021-09: CAD 11.25 per share

- 2021-10: CAD 12.20 per share

- 2021-11: CAD 13.09 per share

- 2021-12: CAD 14.10 per share

- 2022-01: CAD 15.83 per share

- 2022-02: CAD 15.07 per share

- 2022-03: CAD 14.87 per share

- 2022-04: CAD 14.44 per share

- 2022-05: CAD 13.98 per share

- 2022-06: CAD 12.52 per share

- 2022-07: CAD 13.49 per share

- 2022-08: CAD 13.55 per share

- 2022-09: CAD 11.64 per share

- 2022-10: CAD 14.95 per share

- 2022-11: CAD 15.01 per share

- 2022-12: CAD 15.26 per share

- 2023-01: CAD 17.72 per share

- 2023-02: CAD 17.63 per share

- 2023-03: CAD 17.43 per share

- 2023-04: CAD 14.70 per share

- 2023-05: CAD 17.31 per share

- 2023-06: CAD 19.23 per share

- 2023-07: CAD 28.98 per share

- 2023-08: CAD 31.50 per share

- 2023-09: CAD 33.24 per share

- 2023-10: CAD 32.37 per share

- 2023-11: CAD 36.56 per share

- 2023-12: CAD 38.81 per share

- 2024-01: CAD 46.21 per share

- 2024-02: CAD 57.68 per share

- 2024-03: CAD 60.86 per share

- 2024-04: CAD 59.61 per share

- 2024-05: CAD 76.19 per share

- 2024-06: CAD 78.34 per share

- 2024-07: CAD 72.41 per share

- 2024-08: CAD 68.62 per share

- 2024-09: CAD 69.14 per share

- 2024-10: CAD 95.28 per share

- 2024-11: CAD 120.37 per share

- 2024-12: CAD 132.66 per share

- 2025-01: CAD 179.43 per share

- 2025-02: CAD 154.49 per share

- 2025-03: CAD 113.52 per share

- 2025-04: CAD 117.63 per share

- 2025-05: CAD 158.92 per share

- 2025-06: CAD 212.76 per share

- 2025-07: CAD 277.01 per share

- 2025-08: CAD 267.50 per share

- 2025-09: CAD 342.47 per share

- 2025-10: CAD 482.87 per share

- 2025-11: CAD 480.11 per share

- 2025-12: CAD 406.01 per share

- 2026-01: CAD 382.63 per share

- 2026-02: CAD 378.78 per share

- 2026-03: CAD 392.42 per share

- 2026-04: CAD 557.68 per share

- 2026-05: CAD 533.01 per share

- 2026-06: CAD 517.24 per share

- 2026-07: CAD 463.87 per share

- 2026-08: CAD 415.84 per share

- 2026-09: CAD 514.95 per share

- 2026-10: CAD 507.89 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 17.74 per share, central CAD 19.59 per share, high CAD 22.06 per share

- FY2017: low CAD 17.75 per share, central CAD 20.27 per share, high CAD 22.96 per share

- FY2018: low CAD 14.87 per share, central CAD 16.51 per share, high CAD 18.69 per share

- FY2019: low CAD 15.33 per share, central CAD 16.89 per share, high CAD 18.97 per share

- FY2020: low CAD 16.81 per share, central CAD 18.59 per share, high CAD 20.97 per share

- FY2021: low CAD 16.35 per share, central CAD 18.16 per share, high CAD 20.58 per share

- FY2022: low CAD 25.01 per share, central CAD 31.95 per share, high CAD 36.92 per share

- FY2023: low CAD 28.35 per share, central CAD 37.55 per share, high CAD 43.58 per share

- FY2024: low CAD 44.29 per share, central CAD 61.70 per share, high CAD 71.97 per share

- FY2025: low CAD 59.74 per share, central CAD 83.53 per share, high CAD 97.38 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:45.554Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1030894/000103089426000011/cls-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.