Celestica Inc. (CLS) Fundamental Checkup
Celestica Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 28, 2026.
By TGMCharts Research · Data as of · Updated
Celestica Inc. gets a balanced fundamental read when revenue growth of 22.80%, EPS growth of 73.33%, free-cash-flow growth of 29.00%, net margin of 7.16%, and ROIC of 29.75% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.23x and debt-to-equity is 0.33x, so the balance-sheet read is part of the final view rather than a footnote.
- Celestica Inc. has market cap of $34.35B and closed at $299 on August 28, 2026.
- Five-year revenue CAGR is 22.80% and five-year EPS CAGR is 73.33%.
- Five-year free-cash-flow CAGR is 29.00%.
- Net margin is 7.16% and ROIC is 29.75%.
- Current ratio is 1.23x and debt-to-equity is 0.33x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
Evaluating Celestica Across Key Operating and Capital Metrics
To understand the core investment thesis of Celestica Inc., analysts must look beyond simple price movements and evaluate whether operational growth, cash generation, balance sheet leverage, and capital allocation returns tell a unified story. With the stock closing at $299 on August 28, 2026, this fundamental checkup establishes a clear baseline by examining real business outcomes rather than relying on market sentiment.
The core of our analysis tests the long-term expansion of the business, anchored by a five-year revenue CAGR of 22.80% and an impressive five-year EPS CAGR of 73.33%. We then cross-reference these metrics with a five-year free cash flow CAGR of 29.00% to determine if actual cash generation is keeping pace with accounting profits. This multi-dimensional approach prevents a single, potentially volatile metric from distorting our overall assessment.
Current compounder snapshot · CLS
Live supporting context; not part of the article's frozen 2026-08-28 evidence snapshot.
- Score
- 39/100
- 10Y CAGR
- 8.4%
- Median YoY
- 9.3%
- YoY volatility
- σ 17.6pp· uneven
- Quarters ≥ 20%
- 12 of 40
- Negative quarters
- 11
- Valuation vs own 10Y history
- P/S 2.2x · 10Y median 0.3x · 91st percentile · as of Aug 28, 2026
How this score is computed
- Quarters at or above 20%: 12 of 40 → 12 of 40 pts
- Steadiness (typical swing 17.6pp) → 12.4 of 25 pts
- Pace (median 9.3% YoY) → 0 of 20 pts
- Latest quarter (62.4% YoY) → 15 of 15 pts
- Score: 39 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
A Consolidated View of Celestica Financial Architecture
As an established player in the Technology sector, Celestica Inc. must be evaluated through its concrete operational results. Before diving into individual financial statements, we present a consolidated snapshot that links the company's market capitalization with its underlying profitability, growth velocity, and capital structure. This baseline ensures that our subsequent chart analysis is firmly rooted in the company's broader operational reality.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
CLS revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 22.80%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 22.80% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Analyzing Top Line Expansion and Per Share Profit Conversion
The relationship between top-line expansion and bottom-line delivery reveals how efficiently a firm scales. For Celestica Inc., a five-year revenue CAGR of 22.80% demonstrates steady commercial demand, but the real highlight is the five-year EPS CAGR of 73.33%. This substantial outperformance of earnings growth relative to sales suggests that the business has successfully captured operating leverage, optimized its product mix, or executed highly accretive share repurchases.
CLS EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 73.33%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 73.33% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Testing Accounting Profits Against Real Cash Generation
While robust earnings growth is encouraging, net income can be influenced by non-cash accounting adjustments, making free cash flow the ultimate arbiter of financial health. With a five-year free cash flow CAGR of 29.00%, the company shows positive cash-generation dynamics, though it trails the rapid pace of its EPS expansion. This divergence requires close monitoring, as a widening gap between net profits and actual cash inflows could signal increasing capital intensity or working capital friction.
CLS free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 29.00%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 29.00% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Operating Efficiency and Return on Invested Capital
To determine if Celestica's growth is creating genuine economic value, we look to its profitability margins and capital efficiency. The company operates with a net margin of 7.16%, which reflects the highly competitive nature of its industry. However, its efficiency in deploying capital is highly impressive, as evidenced by a return on invested capital (ROIC) of 29.75%, indicating that management is extracting excellent returns from its asset base.
CLS net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 7.16%. The bars below are annual fiscal years.
Net margin of 7.16% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
CLS ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 29.75%.
ROIC of 29.75% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Benchmarks and Debt Leverage Guardrails
A strong growth profile is only as durable as the balance sheet supporting it. Celestica maintains solid financial flexibility, characterized by a current ratio of 1.23x and a conservative debt-to-equity ratio of 0.33x. These metrics indicate that the company is not over-leveraged and possesses sufficient short-term liquidity to navigate unexpected macroeconomic headwinds without disrupting its operational momentum.
CLS debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.33x.
Debt-to-equity of 0.33x and current ratio of 1.23x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Valuation Multiples and Implied Growth Expectations
Valuation is the final piece of the puzzle, representing the hurdles the market expects the business to clear. Trading at a trailing price-to-earnings multiple of 31.02x and offering an earnings yield of 3.22%, the market is pricing in continued operational excellence. Analysts must weigh these valuation multiples against the historical growth rates to determine if the current price offers a reasonable entry point or demands flawless execution.
CLS Price Chart
Latest close: $299 as of August 28, 2026.
The close at $299 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing the Optimistic Thesis Against Structural Risks
The optimistic case for the company rests on its ability to sustain its high return on invested capital of 29.75% while keeping its debt-to-equity ratio at a modest 0.33x. If the company can maintain its historical revenue and earnings trajectories, the current valuation remains well-supported by underlying business performance.
Conversely, the risk-conscious view focuses on the potential for cash flow conversion to lag further behind net income. If the five-year free cash flow CAGR of 29.00% fails to accelerate toward the EPS growth rate, or if capital intensity begins to erode the current operating margins, the stock could face multiple compression even if top-line growth appears stable.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 22.80% and five-year EPS CAGR of 73.33% support the business case.
- Net margin of 7.16% and ROIC of 29.75% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 29.00% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.33x and current ratio of 1.23x are the balance-sheet checks that can change the view.
Key Triggers for Future Fundamental Reassessments
This fundamental assessment remains valid as long as the underlying financial relationships hold true. Any future updates that show a material deceleration in the five-year revenue CAGR, a deterioration in the current ratio, or a decline in the return on invested capital would require a complete reassessment of our thesis. This analysis is intended solely for institutional research context and does not constitute personalized financial advice.
FAQ
What is the fundamental read on CLS?
Celestica Inc. is judged through revenue growth of 22.80%, EPS growth of 73.33%, free-cash-flow growth of 29.00%, net margin of 7.16%, and ROIC of 29.75%.
Which CLS fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this CLS checkup refresh?
Its figures are as of August 28, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 22.80%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 73.33%.
- ROIC or balance-sheet flexibility weakening from ROIC of 29.75% and debt-to-equity of 0.33x.
The bottom line
Celestica Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: CLS fundamentalsContinue with Celestica Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-27 · period 2026-06-30 · SEC EDGAR source
- “Recent investments in AI infrastructure by hyperscalers and other data center customers have increased demand for certain products in our CCS segment, including our Hardware Platform Solutions (HPS) business.”
- “Adverse developments in any of these areas could cause our cloud-based and other service provider customers, including hyperscalers and OEM customers, to delay, reduce or cancel programs, which could adversely impact demand for our products and services, 24 as well as our revenue growth and operating results.”
- “Data center deployments, which have numerous, specific infrastructure requirements, have influenced our revenue variability and may continue to impact our future demand.”
- “Governmental actions related to international trade agreements have increased (and could further increase) the cost to our U.S.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.