Celestica Stock And 2 Cash Flow Picks For AI Infrastructure Growth

Global inflation worries are easing as oil prices soften and central banks strike a more cautious tone. Services activity in key regions is stabilising or returning to growth, from the UK and Eurozone to Australia and Japan, while several Asian economies report more contained inflation trends. That mix of calmer bond markets and improving business surveys is putting the focus back on company fundamentals. The Undervalued Stocks Based On Cash Flows screener targets businesses where cash flow potential looks attractive relative to fair value. This article highlights 3 stocks from the screener that stand out on that basis.

Kraken Robotics (TSXV:PNG)

Overview: Kraken Robotics is a Canadian marine technology company that supplies sonar and optical sensors, SeaPower deep sea batteries and underwater robotic systems used by military and commercial customers for tasks such as mine countermeasures, seabed mapping and subsea asset inspection across global markets.

Operations: Kraken Robotics generates most of its CA$107.8 million in revenue from Products at CA$66.3 million, with Services contributing CA$41.4 million, and sells into Asia Pacific, North America and Europe, the Middle East and Africa.

Market Cap: CA$1.79 billion

Kraken Robotics provides exposure to the increasing use of unmanned underwater vehicles and subsea sensing for defense and offshore energy at a time when analysts expect strong revenue and earnings growth and the Simply Wall St cash flow model indicates the stock is trading below estimated fair value. The company is scaling SeaPower battery production and integrating the large Covelya acquisition, which broadens its sonar and positioning portfolio and has already led to a major uplift in revenue guidance for 2026. At the same time, Kraken is currently unprofitable, carries higher debt after recent deals and has seen insider selling, so execution on major contracts and factory utilization may warrant close monitoring if you are weighing the opportunity against the risks.

Kraken Robotics is scaling sonar, batteries and robotics across defence and offshore, yet its share price still reflects a cash flow story many investors may be underestimating. Get the full picture and see how the valuation, balance sheet and key contract risks fit together with the DCF valuation analysis for Kraken Robotics

Stantec (TSX:STN)

Overview: Stantec is a Canadian professional services company that helps governments and businesses plan, design, build, maintain, and eventually retire critical infrastructure, from water systems and transportation networks to buildings and environmental projects across North America and other global markets.

Operations: Stantec generates most of its CA$6.64b in revenue from the United States at CA$3.46b, with Canada contributing CA$1.55b and global operations adding CA$1.63b across multiple international markets.

Market Cap: CA$11.28b

Stantec provides exposure to long term themes such as aging infrastructure, water resilience, and climate adaptation, supported by a CA$7.9b project backlog and recent contract wins with the U.S. Army Corps of Engineers that provide visibility on future work. Earnings have grown faster than revenue, margins are improving, and analysts see further upside potential while the Simply Wall St model suggests the stock trades below estimated fair value. Offsetting factors include meaningful debt, reliance on government infrastructure budgets, and the need for effective acquisition integration and a CEO transition over the next year. Taken together, Stantec is positioned at the intersection of cash generation and long term infrastructure demand.

Stantec’s rising margins and sizeable backlog suggest that the story may be more about quality of earnings than the headline valuation. See how that balance of cash generation, debt and contract reliance really stacks up in the analysis report for Stantec

Celestica (TSX:CLS)

Overview: Celestica is a Toronto based electronics manufacturing and supply chain company that builds, designs and manages complex hardware platforms for original equipment makers and cloud providers, including hyperscalers, across sectors such as communications, cloud, aerospace and defense, industrial and HealthTech.

Operations: Celestica generates most of its revenue from Connectivity & Cloud Solutions at US$12.3b, with Advanced Technology Solutions contributing US$3.3b.

Market Cap: CA$53.3b

Celestica operates in the middle of the AI infrastructure build out, with its Connectivity & Cloud Solutions segment serving hyperscalers that are ramping 800G networking and advanced compute programs. Recent Q2 2026 results showed record quarterly revenue and higher margins. Analysts expect fast earnings and revenue growth, and the Simply Wall St model indicates the current price sits below estimated cash flow value. However, the stock still carries concentration risk in a handful of large cloud customers and heavy exposure to AI and cloud investment cycles. For readers interested in how that mix of growth prospects, forecast ROE and customer dependence balances out over the next few years, there is more detail available in the full Celestica workup.

Celestica’s expanding role in AI hardware and hyperscaler programs has investors focused on growth, yet the real story may depend on how concentration risk and forecast ROE interact in the analyst forecasts for Celestica

The three stocks covered here are only a starting point, with the full Undervalued Stocks Based On Cash Flows screen uncovering 26 more companies where cash flow potential and current pricing create equally compelling stories through the Undervalued Stocks Based On Cash Flows screener. Use Simply Wall St to identify and analyze the specific cash flow catalysts, balance sheet strengths and valuation narratives that best fit your own highest conviction ideas.

Take Control of Your Investment Journey

If Celestica or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Today’s Ideas

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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