CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - US1265011056 - Common Stock
41.96 USD
-0.12 (-0.29%)
41.96 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CTS. CTS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. CTS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CTS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CTS had positive earnings in the past year.
In the past year CTS had a positive cash flow from operations.
CTS had positive earnings in 4 of the past 5 years.
In the past 5 years CTS always reported a positive cash flow from operatings.
1.2 Ratios
CTS has a better Return On Assets (8.18%) than 88.00% of its industry peers.
CTS has a better Return On Equity (11.67%) than 80.80% of its industry peers.
With an excellent Return On Invested Capital value of 9.89%, CTS belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
CTS had an Average Return On Invested Capital over the past 3 years of 10.61%. This is in line with the industry average of 9.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 11.67% | ||
| ROIC | 9.89% |
ROA(3y)7.9%
ROA(5y)4.59%
ROE(3y)11.4%
ROE(5y)6.67%
ROIC(3y)10.61%
ROIC(5y)10.13%
1.3 Margins
CTS has a Profit Margin of 12.32%. This is amongst the best in the industry. CTS outperforms 88.80% of its industry peers.
CTS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.02%, CTS belongs to the top of the industry, outperforming 89.60% of the companies in the same industry.
CTS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 38.02%, CTS is doing good in the industry, outperforming 65.60% of the companies in the same industry.
In the last couple of years the Gross Margin of CTS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.02% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.02% |
OM growth 3Y-0.48%
OM growth 5Y2.89%
PM growth 3YN/A
PM growth 5Y7.92%
GM growth 3Y0.63%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
CTS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CTS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CTS has less shares outstanding
CTS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.64 indicates that CTS is not in any danger for bankruptcy at the moment.
The Altman-Z score of CTS (5.64) is better than 78.40% of its industry peers.
The Debt to FCF ratio of CTS is 1.01, which is an excellent value as it means it would take CTS, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, CTS belongs to the best of the industry, outperforming 81.60% of the companies in the same industry.
CTS has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
CTS has a Debt to Equity ratio (0.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.64 |
ROIC/WACC1.06
WACC9.32%
2.3 Liquidity
CTS has a Current Ratio of 2.61. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS has a Current ratio (2.61) which is in line with its industry peers.
CTS has a Quick Ratio of 2.04. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS's Quick ratio of 2.04 is fine compared to the rest of the industry. CTS outperforms 61.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.43% over the past year.
Measured over the past years, CTS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.40% on average per year.
CTS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.12%.
Measured over the past years, CTS shows a small growth in Revenue. The Revenue has been growing by 1.92% on average per year.
EPS 1Y (TTM)7.43%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%5.56%
Revenue 1Y (TTM)1.12%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%3.95%
3.2 Future
CTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.91% yearly.
The Revenue is expected to grow by 4.63% on average over the next years.
EPS Next Y4.26%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.34 indicates a rather expensive valuation of CTS.
Based on the Price/Earnings ratio, CTS is valued cheaply inside the industry as 81.60% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.84, CTS is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.24 indicates a rather expensive valuation of CTS.
Based on the Price/Forward Earnings ratio, CTS is valued a bit cheaper than 77.60% of the companies in the same industry.
CTS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.48.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CTS indicates a rather cheap valuation: CTS is cheaper than 86.40% of the companies listed in the same industry.
CTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTS is cheaper than 93.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.14 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CTS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.54
PEG (5Y)2.3
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CTS has a yearly dividend return of 0.37%, which is pretty low.
Compared to an average industry Dividend Yield of 1.48, CTS pays a better dividend. On top of this CTS pays more dividend than 81.60% of the companies listed in the same industry.
With a Dividend Yield of 0.37, CTS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of CTS has a limited annual growth rate of 0.16%.
CTS has paid a dividend for at least 10 years, which is a reliable track record.
CTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.16%
Div Incr Years0
Div Non Decr Years31
5.3 Sustainability
CTS pays out 7.52% of its income as dividend. This is a sustainable payout ratio.
CTS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.52%
EPS Next 2Y5.91%
EPS Next 3YN/A
41.96
-0.12 (-0.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners99.06%
Inst Owner Change-2.26%
Ins Owners2.17%
Ins Owner Change0.31%
Market Cap1.24B
Analysts45
Price Target43.86 (4.53%)
Short Float %1.08%
Short Ratio1.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP7.52%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.24%
Min EPS beat(2)-11.09%
Max EPS beat(2)2.61%
EPS beat(4)2
Avg EPS beat(4)1.05%
Min EPS beat(4)-11.09%
Max EPS beat(4)15.51%
EPS beat(8)5
Avg EPS beat(8)1.41%
EPS beat(12)7
Avg EPS beat(12)1.57%
EPS beat(16)11
Avg EPS beat(16)4%
Revenue beat(2)1
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-3.26%
Max Revenue beat(2)0.99%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)0.99%
Revenue beat(8)1
Avg Revenue beat(8)-2.56%
Revenue beat(12)3
Avg Revenue beat(12)-2.13%
Revenue beat(16)7
Avg Revenue beat(16)-0.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.61%
EPS NY rev (1m)1.82%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.34 | ||
| Fwd PE | 17.24 | ||
| P/S | 2.37 | ||
| P/FCF | 14.14 | ||
| P/OCF | 11.76 | ||
| P/B | 2.25 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)2.17
EY5.17%
EPS(NY)2.43
Fwd EY5.8%
FCF(TTM)2.97
FCFY7.07%
OCF(TTM)3.57
OCFY8.51%
SpS17.67
BVpS18.66
TBVpS6.13
PEG (NY)4.54
PEG (5Y)2.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 11.67% | ||
| ROCE | 12.2% | ||
| ROIC | 9.89% | ||
| ROICexc | 11.57% | ||
| ROICexgc | 31.39% | ||
| OM | 16.02% | ||
| PM (TTM) | 12.32% | ||
| GM | 38.02% | ||
| FCFM | 16.8% |
ROA(3y)7.9%
ROA(5y)4.59%
ROE(3y)11.4%
ROE(5y)6.67%
ROIC(3y)10.61%
ROIC(5y)10.13%
ROICexc(3y)13.62%
ROICexc(5y)13.04%
ROICexgc(3y)31.83%
ROICexgc(5y)27.79%
ROCE(3y)13.09%
ROCE(5y)12.49%
ROICexcg growth 3Y2.59%
ROICexcg growth 5Y8.96%
ROICexc growth 3Y-10.96%
ROICexc growth 5Y-0.3%
OM growth 3Y-0.48%
OM growth 5Y2.89%
PM growth 3YN/A
PM growth 5Y7.92%
GM growth 3Y0.63%
GM growth 5Y1.76%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 53.18% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 17.22 | ||
| Cash Conversion | 90.11% | ||
| Profit Quality | 136.33% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 5.64 |
F-Score6
WACC9.32%
ROIC/WACC1.06
Cap/Depr(3y)53.27%
Cap/Depr(5y)54.74%
Cap/Sales(3y)2.91%
Cap/Sales(5y)3.06%
Profit Quality(3y)146.84%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.43%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%5.56%
EPS Next Y4.26%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.12%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%3.95%
Revenue Next Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.93%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year26.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-16.36%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y-12.65%
OCF growth 3Y4.85%
OCF growth 5Y9.04%