Added to YB: 2025-12-12
Pitch date: 2025-12-08
CLS [neutral]
Celestica Inc.
-9.78%
current return
Author Info
No bio for this author
Company Info
Celestica Inc., together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally.
Market Cap
CAD 39.4B
Pitch Price
CAD 467.50
Price Target
N/A
Dividend
N/A
EV/EBITDA
34.53
P/E
55.69
EV/Sales
3.54
Sector
Electronic Equipment, Instruments and Components
Category
growth
Celestica Write-up w/Mgmt Analysis (CLS)
CLS (overview): AI data center infrastructure play pivoted from low-margin EMS to design-led platforms. Revenue CAGR 29% to 2027, EPS CAGR 42%, operating margin expanding to 7.8%. HPS segment growing 80%+ YoY on 800G/1.6T Ethernet switching dominance, custom ASIC compute for hyperscalers. Bull: structural AI tailwinds, tech leadership, 37.5% ROIC rising to 50%+. Bear: 55x 2025 P/E, customer concentration risk (3 customers = 59% revenue), competition intensifying, margin sustainability questions as capex rises to 2.5% of revenue.
Read full article (29 min)