Celestica Inc. CLS
CLS fundamentals remain exceptional — FY2025 revenue grew 30.7% to $12.6B with diluted EPS nearly doubling to $7.29 from $3.61, and margins expanded across the board (operating margin 8.64% vs 6.21% prior year) — but the stock has pulled back to $299.40 and now trades below both the 50-day ($332.59) and 200-day ($328.33) moving averages with a negative MACD histogram. The PE of 30.80 is roughly in line with the peer median of 31.23, so the pullback has eased the valuation concern, yet CEO Robert Mionis sold shares at $360–365 on August 13, 2026, part of a 24-month pattern of net insider dispositions totaling $648M.
BlackRock's new 613,620-share position and AI-infrastructure demand tailwinds are encouraging, but deteriorating technicals and persistent insider selling keep the risk/reward balanced rather than compelling.
What could go wrong
- Insider selling persistence. Over the trailing 24 months, insiders have executed 330 dispositions versus 181 acquisitions, with net dispositions of $648M in value; the CEO continued selling on August 13, 2026 at $360–365, signaling limited insider confidence at current levels.
- Technical breakdown. The stock at $299.40 is below both the 50-day MA ($332.59) and 200-day MA ($328.33) with a negative MACD histogram (-0.89) and RSI at 43.15, suggesting continued near-term selling pressure.
- AI capex cycle dependency. Much of the recent growth is tied to AI-infrastructure demand in the Connectivity & Cloud Solutions segment; any deceleration in hyperscaler capital spending could materially impact revenue and margin trajectory.
- Thin absolute margins. Despite expansion, gross margin remains 11.69% — a low absolute level typical of contract manufacturing, meaning modest pricing pressure or mix shifts could reverse the margin improvement trend.
What would change my mind
Where this comes from: FMP FY2025 fundamentals and derived_metrics · FMP FY2025 and FY2024 fundamentals · derived_metrics FY2025 and FY2024 · FMP technicals as of 2026-08-31. Orin's read on CLS; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All CLS filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Fmr | $3.1B | 0.1% of fund |
| Jpmorgan Chase & | $1.3B | 0.1% of fund |
| Vanguard Capital Management | $1.2B | 0.0% of fund |
| Franklin Resources | $1.0B | 0.2% of fund |
| D. E. Shaw & | $684.3M | 0.3% of fund |
| Bank Of Montreal /Can/ | $545.4M | 0.2% of fund |
95 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 520 Form 4 filings, net −$663.8M. Of the 50 on hand, 0 were open-market purchases and 41 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about CLS
Orin answers questions about CLS from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 38.4× | — | 53.3× |
| EV/EBITDA | 28.7× | — | — |
| P/S | 2.75× | — | — |
| P/B | 17.3× | — | — |
29.0%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$455
$375 – $510 · +23% against today's price
- 19 buy or overweight
- 9 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| CLSCelestica Inc. | $43B | 38.4× | 28.7× | 12.0% | 7.2% | 51% |
| CTSHCognizant Technology Solutions Corporation | $26B | 12.3× | 6.8× | 32.0% | 10.3% | 15% |
| FICOFair Isaac Corporation | $18B | 24.6× | 18.8× | 85.1% | 34.1% | -33% |
| FLEXFlex Ltd. | $42B | 43.4× | 23.4× | 9.5% | 3.3% | 19% |
| GRMNGarmin Ltd. | $57B | 30.2× | 22.7× | 60.1% | 24.5% | 21% |
| JBLJabil Inc. | $33B | 38.4× | 16.5× | 9.2% | 2.6% | 62% |
| KEYSKeysight Technologies, Inc. | $61B | 49.2× | 35.7× | 64.7% | 19.1% | 20% |
| SNDKSandisk Corporation | $260B | 22.5× | 19.5× | 71.5% | 56.5% | 93% |
| TDYTeledyne Technologies Incorporated | $28B | 29.5× | 18.9× | 39.0% | 15.3% | 9% |
The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 28.7% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.