Upside case
Bull case
$680+64.3%
CLS would need investors to value it at roughly 68x earnings — about 27x more generous than today's 41x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Celestica Inc. (CLS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
27
analysts
17 bullish · 0 bearish · 27 covering CLS
Strong Buy
0
Buy
17
Hold
10
Sell
0
Strong Sell
0
Consensus Target
$459
+10.9% vs today
Scenario Range
$89 – $680
Model bear to bull value window
Coverage
27
Published analyst ratings
Valuation Context
41.2x
Forward P/E · Market cap $47.6B
CLS price targets
Three scenarios for where CLS stock could go
Current
~$414
Confidence
65 / 100
Updated
May 1, 2026
Where we are now
Current · $414
Bear
$89
Base
$803
Bull
$680
Market caseClosest to today
Base case
$803+94.0%
At 80x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$89-78.4%
If investor confidence fades or macro conditions deteriorate, a 32x multiple contraction could push CLS down roughly 78% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Celestica Inc.
CLS · NYSETechnologyHardware, Equipment & PartsDecember year-end
Celestica is a global electronics manufacturing services provider that designs, builds, and manages supply chains for complex hardware products. It generates revenue primarily through manufacturing services—roughly 60% from enterprise hardware like servers and networking equipment, and 40% from industrial, aerospace, and healthcare electronics—with additional income from after-market services. The company's competitive advantage lies in its deep engineering expertise and global manufacturing footprint that allows it to handle complex, low-volume, high-mix production for specialized industries.
Market Cap
$47.6B
Revenue TTM
$13.8B
Net Income TTM
$960M
Net Margin
6.9%
CLS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+10.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.39/$1.24
Revenue
$2.9B/$2.8B
Q4 2025
EPS
$1.58/$1.47
Revenue
$3.2B/$3.5B
Q1 2026
EPS
$1.89/$1.74
Revenue
$3.6B/$3.5B
Q2 2026
EPS
$2.16/$2.08
Revenue
$4.0B/$4.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.39/$1.24 | +12.1% | $2.9B/$2.8B | +4.7% |
| Q4 2025 | $1.58/$1.47 | +7.5% | $3.2B/$3.5B | -9.5% |
| Q1 2026 | $1.89/$1.74 | +8.6% | $3.6B/$3.5B | +2.7% |
| Q2 2026 | $2.16/$2.08 | +3.8% | $4.0B/$4.0B | +0.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$17.6B
+27.6% YoY
FY2
$22.6B
+28.1% YoY
EPS Outlook
FY1
$10.61
+27.9% YoY
FY2
$14.14
+33.3% YoY
Trailing FCF (TTM)$493M
FCF Margin: 3.6%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
CLS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
CLS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $3.2B
Product Mix
Latest annual revenue by segment or product family
ATS Segment
100.0%
+1.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
ATS Segment is the largest disclosed segment at 100.0% of FY 2025 revenue, up 1.5% YoY.
CLS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Overvalued
Fair value est. $244 — implies -41.8% from today's price.
Premium to Fair Value
41.8%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CLS
56.8x
vs
S&P 500
25.2x
+125% premium
vs Technology Trailing P/E
CLS
56.8x
vs
Technology
27.5x
+107% premium
vs CLS 5Y Avg P/E
Today
56.8x
vs
5Y Average
20.4x
+179% premium
Forward PE
41.2x
S&P 500
19.1x
+116%
Technology
21.7x
+90%
5Y Avg
—
—
Trailing PE
56.8x
S&P 500
25.2x
+125%
Technology
27.5x
+107%
5Y Avg
20.4x
+179%
PEG Ratio
0.78x
S&P 500
1.75x
-55%
Technology
1.47x
-47%
5Y Avg
—
—
EV/EBITDA
37.8x
S&P 500
15.3x
+148%
Technology
17.4x
+117%
5Y Avg
12.3x
+207%
Price/FCF
102.0x
S&P 500
21.3x
+378%
Technology
19.8x
+415%
5Y Avg
29.8x
+242%
Price/Sales
3.8x
S&P 500
3.1x
+20%
Technology
2.4x
+56%
5Y Avg
0.9x
+298%
Dividend Yield
—
S&P 500
1.88%
—
Technology
1.18%
—
5Y Avg
—
—
| Metric | CLS | S&P 500 | Technology | 5Y Avg CLS |
|---|---|---|---|---|
| Forward PE | 41.2x | 19.1x+116% | 21.7x+90% | — |
| Trailing PE | 56.8x | 25.2x+125% | 27.5x+107% | 20.4x+179% |
| PEG Ratio | 0.78x | 1.75x-55% | 1.47x-47% | — |
| EV/EBITDA | 37.8x | 15.3x+148% | 17.4x+117% | 12.3x+207% |
| Price/FCF | 102.0x | 21.3x+378% | 19.8x+415% | 29.8x+242% |
| Price/Sales | 3.8x | 3.1x+20% | 2.4x+56% | 0.9x+298% |
| Dividend Yield | — | 1.88% | 1.18% | — |
CLS trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolCLS Financial Health
Verdict
Adequate
CLS 34.0% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$13.8B
Revenue Growth
TTM vs prior year
+36.9%
Gross Margin
Gross profit as a share of revenue
11.6%
Operating Margin
Operating income divided by revenue
7.8%
Net Margin
Net income divided by revenue
6.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$8.30
Free Cash Flow (TTM)
Cash generation after capex
$493M
FCF Margin
FCF as share of revenue — the primary cash quality signal
3.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
34.0%
ROA
Return on assets, trailing twelve months
13.6%
Cash & Equivalents
Liquid assets on the balance sheet
$595M
Net Debt
Total debt minus cash
$320M
Debt Serviceability
Net debt as a multiple of annual free cash flow
0.6× FCF
~0.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
47.7%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.8%
Dividend
—
Buyback
0.8%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$382M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
115M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageCLS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Customer Concentration Risk
Celestica derives a large share of its revenue from a handful of major customers. A reduction in orders or a shift to competitors by any of these customers could materially lower sales and earnings.
High Risk
Capital Expenditure & Liquidity Risk
The company is ramping up capital expenditures to support growth from hyperscaler clients, increasing its fixed‑cost base. If cash flow does not keep pace, liquidity could be constrained.
High Risk
Rental Income Decline & Vacancy Risk
CLS Holdings has reported a decline in net rental income and rising vacancy rates due to property disposals and tenant insolvencies. This erosion of cash flow could impact debt servicing and asset values.
High Risk
Debt Maturity & Refinancing Risk
CLS Holdings has a significant amount of debt maturing in the near term. Ongoing refinancing efforts may not fully align with the company’s risk appetite, potentially increasing leverage and interest costs.
High Risk
Property Valuation Decline Risk
The valuation of CLS Holdings’ property portfolio has fallen, reducing its net asset value. A continued decline could impair the company’s balance sheet and investor returns.
Medium
Production & Manufacturing Disruption
Disruptions in manufacturing processes could delay product delivery and increase costs. Such operational setbacks could affect revenue and margins.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why CLS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
AI Infrastructure Spending Surge
Celestica’s Connectivity & Cloud Solutions (CCS) segment is benefiting from the surge in AI infrastructure spending by major hyperscalers. The segment supplies servers and storage systems for data centers, experiencing strong demand that positions the company to capture a growing share of the AI market.
$1B Capex Expansion in 2026
Celestica plans to invest approximately $1 billion in capital expenditures in 2026 to expand its capacity for AI‑related products. The expansion is expected to be financed through operating cash flow, supporting the company’s ability to meet rising demand.
Rapid Growth in Communications End Market
Revenue from the communications end market within the CCS segment has jumped significantly, driven by demand for high‑speed networking equipment. This growth underscores the company’s strong performance in key high‑growth segments.
Margin Improvement via Volume & Productivity
Celestica is experiencing stronger margins thanks to higher production volumes and productivity initiatives. These operational efficiencies are translating into improved profitability across its product lines.
Deep Hyperscale Customer Relationships
The company has deep relationships with hyperscale customers and is well‑positioned to benefit from their significant AI capital expenditure plans. These long‑term partnerships provide a stable revenue base and growth opportunities.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
CLS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$413.87
52W Range Position
94%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$90.00
+359.9% from the low
52-Week High
$435.00
-4.9% from the high
1 Month
+41.59%
3 Month
+34.58%
YTD
+36.9%
1 Year
+334.8%
3Y CAGR
+233.7%
5Y CAGR
+119.2%
10Y CAGR
+44.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
CLS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
41.2x
vs 31.3x median
+32% above peer median
Revenue Growth
+27.6%
vs +1.5% median
+1735% above peer median
Net Margin
6.9%
vs 2.5% median
+181% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CLS CLS Celestica Inc. | $47.6B | 41.2x | +27.6% | 6.9% | Buy | +10.9% |
JBL JBL Jabil Inc. | $40.0B | 30.2x | +1.5% | 2.5% | Buy | -26.7% |
FLE FLEX Flex Ltd. | $49.5B | 41.5x | +0.0% | 3.2% | Buy | -40.6% |
BHE BHE Benchmark Electronics, Inc. | $3.1B | 31.3x | +1.4% | 1.3% | Hold | -0.7% |
SAN SANM Sanmina Corporation | $13.0B | 21.4x | +7.6% | 2.3% | Hold | -16.2% |
PLX PLXS Plexus Corp. | $7.1B | 34.4x | +2.6% | 4.4% | Buy | -5.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
CLS Dividend and Capital Return
CLS returns 0.8% annually — null% through dividends and 0.8% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
0.8%
Dividend + buyback return per year
Buyback Yield
0.8%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$382M
Estimated Shares Retired
921.9K
Approx. Share Reduction
0.8%
Shares Outstanding
Current diluted share count from the screening snapshot
115M
At 0.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsCLS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Celestica Inc. (CLS) stock a buy or sell in 2026?
Celestica Inc. (CLS) is rated Buy by Wall Street analysts as of 2026. Of 27 analysts covering the stock, 17 rate it Buy or Strong Buy, 10 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $459, implying +10.9% from the current price of $414. The bear case scenario is $89 and the bull case is $680.
02What is the CLS stock price target for 2026?
The Wall Street consensus price target for CLS is $459 based on 27 analyst estimates. The high-end target is $510 (+23.2% from today), and the low-end target is $430 (+3.9%). The base case model target is $803.
03Is Celestica Inc. (CLS) stock overvalued in 2026?
CLS trades at 41.2x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Celestica Inc. (CLS) stock in 2026?
The primary risks for CLS in 2026 are: (1) Customer Concentration Risk — Celestica derives a large share of its revenue from a handful of major customers. (2) Capital Expenditure & Liquidity Risk — The company is ramping up capital expenditures to support growth from hyperscaler clients, increasing its fixed‑cost base. (3) Rental Income Decline & Vacancy Risk — CLS Holdings has reported a decline in net rental income and rising vacancy rates due to property disposals and tenant insolvencies. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Celestica Inc.'s revenue and earnings forecast?
Analyst consensus estimates CLS will report consensus revenue of $17.6B (+27.6% year-over-year) and EPS of $10.61 (+27.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $22.6B in revenue.
06When does Celestica Inc. (CLS) report its next earnings?
A confirmed upcoming earnings date for CLS is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Celestica Inc. generate?
Celestica Inc. (CLS) generated $493M in free cash flow over the trailing twelve months — a free cash flow margin of 3.6%. CLS returns capital to shareholders through and share repurchases ($382M TTM).