On August 12, 2026, Celestica Inc CLS shares rose 9.4%, reaching a current price of $339.46. This price is within a 52-week range that has seen a high of $474.03 and a low of $173.23.
- GF Valueâ„¢ verdict: Shares are currently priced at $339.46, significantly above the estimated fair value of $144.86, indicating a 134.3% overvaluation.
- GF Scoreâ„¢ of 84/100 suggests a strong overall rating, reflecting solid financial performance.
- Notable signal: Insider activity shows significant selling, with insiders having sold $128.1M worth of shares in the last three months, with no buying activity reported.
Is CLS Overvalued or Undervalued?
Celestica Inc is currently trading at $339.46, a substantial premium compared to the GF Value™ estimate of $144.86. This represents a considerable overvaluation of 134.3%, as indicated by the GF Valuation label, which categorizes the stock as significantly overvalued. The GF Value™ estimate is derived from a comprehensive analysis that considers historical trading multiples, past business growth, and projections for future performance. A considerable gap between current market price and GF Value™ raises concerns regarding the stock’s margin of safety, suggesting that potential investors may face heightened risk if market conditions shift.
Being overvalued implies that the stock may not provide a favorable return on investment at its current price. This situation necessitates caution, as the elevated valuation could be subject to correction, particularly in a fluctuating market environment.
How Does CLS's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 41.0x | 17.2x |
| Forward P/E | 30.2x | N/A |
Celestica's current P/E ratio of 41.0x stands significantly above its 5-year median of 17.2x, indicating that the stock is trading at a premium compared to its historical valuation metrics. This aligns with the GF Valueâ„¢ verdict, reinforcing the notion that CLS is overvalued at this time.
What Does CLS's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ is a measure of a company's overall financial health, taking into account various factors including growth, profitability, and valuation. Celestica Inc has achieved a GF Scoreâ„¢ of 84/100, with its strongest performance in the areas of profitability and growth, scoring 9/10 and 10/10 respectively. However, it ranks low in valuation, receiving a score of just 1/10.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 84/100 |
| Financial Strength | 7/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 1/10 |
| Momentum | 10/10 |
The analysis suggests that while Celestica has strong growth and profitability, its low valuation score indicates that the stock is currently overpriced relative to its earnings potential, corroborating the findings from the GF Valueâ„¢ assessment.
What Are Gurus and Insiders Doing with CLS?
Currently, 10 gurus hold positions in Celestica Inc, with 7 adding to their stakes while 4 have trimmed their positions in recent quarters. This activity suggests a mixed sentiment among professional investors. Notably, insider activity reveals that insiders have sold $128.1M in shares over the past three months without any buying, which may indicate a lack of confidence in the stock's near-term prospects among those closest to the company.
This selling trend could raise concerns for potential investors, as it may reflect a perception of overvaluation or uncertainty about future performance from insiders who possess vital knowledge about the company’s operations.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, Celestica Inc is currently overvalued at a price of $339.46 compared to the fair value estimate of $144.86. This significant overvaluation, combined with the recent insider selling, suggests that investors should exercise caution. The strong GF Scoreâ„¢ indicates solid financial performance, but the low valuation rank and high P/E ratios highlight potential risks.
For more detailed information on Celestica Inc, visit the Celestica Inc CLS stock page for analysis and insights.
Frequently Asked Questions
What is CLS's GF Scoreâ„¢?
CLS has a GF Scoreâ„¢ of 84/100, indicating strong overall financial health with particularly high scores in growth and profitability.
Is CLS overvalued or undervalued?
CLS is currently overvalued according to the GF Valueâ„¢ assessment, with a significant overvaluation of 134.3% compared to its fair value estimate.
What is CLS's P/E ratio?
CLS's P/E ratio is 41.0x, which is substantially higher than its 5-year median P/E of 17.2x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
