Celestica Inc. CLS

The business

Celestica builds electronics that other companies put their name on. Historically that meant assembling somebody else's design at a low single-digit margin, which is why contract manufacturers have always been valued like the industrial businesses they are. The Connectivity and Cloud Solutions segment now does something more specific: it designs and builds the switches, servers and networking hardware that go inside data centres, increasingly for the small number of companies building artificial intelligence infrastructure at scale.

The other segment, Advanced Technology Solutions, is aerospace, defence, industrial and health technology. It is a fifth of revenue, growing slowly, and carries a lower margin. Nobody is buying this company for it.