Celestica Inc. (CLS): fair value, margin of safety and Wheel Score

Is CLS undervalued?

CLS closed at 315.25 on 16 Oct 2026, which is 16% above the GLS average fair value of 271.99 from 7 models. 5 of them value the shares below today's price. Our screens read that as "no margin of safety": the stock is not a value candidate at this price, whatever the quality numbers say.

The 7 models disagree widely: Graham Number gives 68.63 while GLS Growth gives 594.31. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CLS under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for CLS

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health CLS scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.1 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 26.6%, ROE 37.6%, ROA 11.6% - with debt at 0.41 times equity and a free-cash-flow yield of 1.3%.

Celestica Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from CCS 81%, ATS 19% (quarter Q2 FY2026).

Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 70: Good

CLS scores 70 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 6/25), Piotroski health (16/20), the GLS moat (14/15), the option premium on offer (15/20) and how easily the stock trades (19/20). Value (6/25) is the part holding the score back.

Implied volatility is 79% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (15 of 20) because volatility this high usually comes with a reason. The option chain is deep: 70,313 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 3.8M shares a day on a market cap of $39.8B, with a beta of 1.46 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 19 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Celestica Inc. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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The 12 companies below are the closest to Celestica Inc. by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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