Added to YB: 2026-04-09
Pitch date: 2026-04-07
CLS [neutral]
Celestica Inc.
+3.71%
current return
Author Info
Investment ideas on Digital Infra, SaaS & Defense. Sign up for the newsletter.
Company Info
Celestica Inc., together with its subsidiaries, provides supply chain solutions in Asia, North America, and internationally.
Market Cap
CAD 36.8B
Pitch Price
CAD 437.50
Price Target
395.00 (-11%)
Dividend
N/A
EV/EBITDA
28.82
P/E
44.69
EV/Sales
2.99
Sector
Electronic Equipment, Instruments and Components
Category
growth
Deep Dive: Celestica (CLS): Full Valuation Case & Monte Carlo Simulation
CLS (deep dive): AI infrastructure ODM shifting from thin-margin EMS to 7.8% op margin (doubled since 2023) via AMD Helios partnership. AdjEPS growing 2x revenue pace; 35.5% adj ROIC vs 12.3% WACC. $397M customer deposits fund growth; FCF raised to $400M+ in 2025. Risk: $1B 2026 CapEx (5x historical), 58% rev from 3 customers, hyperscaler in-sourcing threat. Current $292 prices in 27% CAGR through 2030 (60th percentile Monte Carlo). Base PT $236, bull $395 if margin expansion & CapEx convert by 2028. Heavy April 24 $295 put sweeps ahead of 4/27 earnings. Hold; add on pullback to $240-$265 (2:1 risk/reward).
Read full article (25 min)