Celestica Inc. (CLS): one to watch?

Cautious buy — the crash is dilution from a discounted stock sale to fund AI growth, not a business breakdown, but dilution and capex risk are real.

👀 WATCH Fundamentals76/100

Fell 13% in 1 trading day(s) — now $314.53

Why CLS dropped

Celestica priced a $3 billion stock sale at $310/share, a steep discount to Wednesday's $362.76 close, to fund AI infrastructure capital spending, immediately shrinking existing shareholders' ownership by roughly 8-9%.

Fwd P/E 15.9Op margin 9.8%Rev growth 62.4%Debt/equity 39.6%Analyst upside 51.7%

How this scored 76/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 7.2%

✅ Generates cash Free cash flow $729M

✅ Not drowning in debt Debt/equity 39.6% (limit 200%)

✅ Can pay its bills Current ratio 1.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 14/25

Operating margin 9.8% 4/9

Net profit margin 7.2% 3/8

Return on equity 52.7% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 62.4% 9/9

Earnings growth 74.2% 8/8

Expected profit change 129.4% 8/8

Value Is it cheap right now? 20/25

Forward P/E 15.9 8/10

PEG ratio 1.0 6/8

Analyst target upside 51.7% 6/7

Balance sheet Will it survive? 17/25

Debt / equity 39.6% 9/10

Current ratio 1.2 1/8

Free cash flow $729M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-07. Research only — not financial advice.