Celestica Inc. (CLS.TO) stock analysis

In our weekly check, Celestica Inc. is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 3.

About Celestica Inc.

Celestica Inc. is a Technology company (Hardware, Equipment & Parts) based in Canada, listed on TSX as CLS.TO.

What our checks show for CLS.TO

Red flags

• The price swings a lot: 79.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 79% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.3 years.

Warning signs

• Operating cash flow is only 0.59x net profit: part of the reported profit does not arrive as cash.
• Analysts expect the net margin to shrink by 0.1 points from today's 7.2%.
• The net margin is only 7.2%: little room if costs rise.
• Free cash flow is only 2.9% of revenue.
• Beta 1.46: the stock usually moves more than the market, both up and down.
• Thinly traded (about 457 thousand shares a day): buying and selling can move the price.

Strengths

• Net debt is only 0.2x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 22 times over.
• The net margin rose by 5.3 points over 5 years, to 7.2%.
• The gross margin is 12% and has risen by 3.3 points: pricing power is holding.
• Analysts expect earnings per share to grow about 50.5% a year over the next years.
• Analysts expect revenue to grow about 56.7% a year over the next years.

Next earnings report: 2026-10-26

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Questions

What grade does Celestica Inc. (CLS.TO) have?

In our weekly check, Celestica Inc. is graded B (A to F). Of 24 checks on debt, profit, cash flow and trend: 15 pass, warnings: 6, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CLS.TO stock?

This week's biggest flags for Celestica Inc.: Very volatile, Deep past fall, Slow recovery after falls. In total 9 of 24 checks show a warning or a red flag.

What does Celestica Inc. do?

Celestica Inc. is a Technology company (Hardware, Equipment & Parts) based in Canada, listed on TSX as CLS.TO.

When does Celestica Inc. report earnings next?

The next earnings report is expected on 2026-10-26. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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