CLS

⚡ Celestica’s operating profit nearly doubled in the last year, continuing an upward trend since 2020.

💰 The company boasts a solid balance sheet (1.5x solvency ratio) and record free cash flow per share ($2.50 in 2024, up ~50%).

📉 After a significant price surge, the stock retraced 50% to a support level near $78; currently trading at 27 times earnings, suggesting waiting for a pullback might offer a more attractive valuation.

@rankia:
“I’m sure you’ve heard of our next company; I’m referring to Celestica, a US company specialized in electronic manufacturing services, offering design, production, and supply chain solutions to companies in sectors like communications, health, or aerospace industry. The Canadian company has become a global benchmark in electronic manufacturing services, and its numbers make it clear why. Its operating profit or EBIT has practically doubled in the last year, continuing an upward trend started in 2020. Furthermore, it boasts a solid balance sheet with a solvency ratio of 1.5 times and free cash flow per share that reached historical records of $2.50 per share in 2024, increasing by around 50% compared to the previous year. On the chart, after the big explosion at the end of 2024, the price retraced 50% to $78 per share before starting to rebound. What does this mean? Simply that it would be interesting to wait for another pullback to this support to find it at a more attractive valuation, as it now trades at about 27 times earnings.”

Watch the exact part of the video where @rankia talks about Celestica Inc. here:

Watch the video on YouTube

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