CTS CORP (CTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTS - US1265011056 - Common Stock
41.8 USD
+1.51 (+3.75%)
41.8 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to CTS. CTS was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. CTS gets an excellent profitability rating and is at the same time showing great financial health properties. CTS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CTS was profitable.
In the past year CTS had a positive cash flow from operations.
Of the past 5 years CTS 4 years were profitable.
Each year in the past 5 years CTS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CTS (7.49%) is better than 86.99% of its industry peers.
CTS has a better Return On Equity (10.81%) than 75.61% of its industry peers.
The Return On Invested Capital of CTS (9.58%) is better than 82.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CTS is in line with the industry average of 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 10.81% | ||
| ROIC | 9.58% |
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
Looking at the Profit Margin, with a value of 11.14%, CTS belongs to the top of the industry, outperforming 86.18% of the companies in the same industry.
CTS's Profit Margin has improved in the last couple of years.
CTS's Operating Margin of 15.25% is amongst the best of the industry. CTS outperforms 87.80% of its industry peers.
In the last couple of years the Operating Margin of CTS has grown nicely.
CTS has a Gross Margin of 38.05%. This is in the better half of the industry: CTS outperforms 62.60% of its industry peers.
CTS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.25% | ||
| PM (TTM) | 11.14% | ||
| GM | 38.05% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CTS is creating some value.
CTS has less shares outstanding than it did 1 year ago.
CTS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CTS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.44 indicates that CTS is not in any danger for bankruptcy at the moment.
CTS has a Altman-Z score of 5.44. This is in the better half of the industry: CTS outperforms 77.24% of its industry peers.
The Debt to FCF ratio of CTS is 1.13, which is an excellent value as it means it would take CTS, only 1.13 years of fcf income to pay off all of its debts.
CTS has a Debt to FCF ratio of 1.13. This is amongst the best in the industry. CTS outperforms 81.30% of its industry peers.
CTS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
CTS's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. CTS outperforms 47.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.06
WACC9.04%
2.3 Liquidity
CTS has a Current Ratio of 2.64. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.64, CTS perfoms like the industry average, outperforming 55.28% of the companies in the same industry.
A Quick Ratio of 2.12 indicates that CTS has no problem at all paying its short term obligations.
The Quick ratio of CTS (2.12) is better than 61.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
CTS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.42%.
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.
The Revenue has been growing slightly by 3.60% in the past year.
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)1.42%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)3.6%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%7.96%
3.2 Future
Based on estimates for the next years, CTS will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
Based on estimates for the next years, CTS will show a small growth in Revenue. The Revenue will grow by 4.20% on average per year.
EPS Next Y4.26%
EPS Next 2Y5.91%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.8%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 19.53, CTS is valued on the expensive side.
Based on the Price/Earnings ratio, CTS is valued a bit cheaper than 77.24% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, CTS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.17, CTS is valued on the expensive side.
CTS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CTS is cheaper than 76.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. CTS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
82.93% of the companies in the same industry are more expensive than CTS, based on the Enterprise Value to EBITDA ratio.
CTS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CTS is cheaper than 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.36 | ||
| EV/EBITDA | 10.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CTS may justify a higher PE ratio.
PEG (NY)4.59
PEG (5Y)2.33
EPS Next 2Y5.91%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.40%, CTS is not a good candidate for dividend investing.
CTS's Dividend Yield is rather good when compared to the industry average which is at 2.35. CTS pays more dividend than 80.49% of the companies in the same industry.
With a Dividend Yield of 0.40, CTS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.16%
Div Incr Years0
Div Non Decr Years31
5.3 Sustainability
CTS pays out 8.09% 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.
DP8.09%
EPS Next 2Y5.91%
EPS Next 3Y6.56%
41.8
+1.51 (+3.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.15%
Inst Owner Change0.34%
Ins Owners2.17%
Ins Owner Change2.78%
Market Cap1.23B
Revenue(TTM)531.48M
Net Income(TTM)59.19M
Analysts45
Price Target47.94 (14.69%)
Short Float %1.59%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.09%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-2.61%
Max EPS beat(2)2.61%
EPS beat(4)1
Avg EPS beat(4)-3.48%
Min EPS beat(4)-11.09%
Max EPS beat(4)2.61%
EPS beat(8)5
Avg EPS beat(8)1.64%
EPS beat(12)7
Avg EPS beat(12)1.48%
EPS beat(16)10
Avg EPS beat(16)2.79%
Revenue beat(2)2
Avg Revenue beat(2)2.39%
Min Revenue beat(2)0.99%
Max Revenue beat(2)3.78%
Revenue beat(4)2
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)3.78%
Revenue beat(8)2
Avg Revenue beat(8)-1.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.82%
Revenue NQ rev (1m)-3.79%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)1.26%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.53 | ||
| Fwd PE | 17.17 | ||
| P/S | 2.32 | ||
| P/FCF | 15.36 | ||
| P/OCF | 12.47 | ||
| P/B | 2.25 | ||
| P/tB | 6.74 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)2.14
EY5.12%
EPS(NY)2.43
Fwd EY5.82%
FCF(TTM)2.72
FCFY6.51%
OCF(TTM)3.35
OCFY8.02%
SpS18.03
BVpS18.58
TBVpS6.21
PEG (NY)4.59
PEG (5Y)2.33
Graham Number29.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 10.81% | ||
| ROCE | 11.82% | ||
| ROIC | 9.58% | ||
| ROICexc | 11.42% | ||
| ROICexgc | 31.19% | ||
| OM | 15.25% | ||
| PM (TTM) | 11.14% | ||
| GM | 38.05% | ||
| FCFM | 15.09% |
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%
ROICexgc growth 3Y2.59%
ROICexgc 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-Score8
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.79 | ||
| Cap/Depr | 54.58% | ||
| Cap/Sales | 3.51% | ||
| Interest Coverage | 17.38 | ||
| Cash Conversion | 85.82% | ||
| Profit Quality | 135.51% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 5.44 |
F-Score8
WACC9.04%
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)1.42%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-4.76%
EPS Next Y4.26%
EPS Next 2Y5.91%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue 1Y (TTM)3.6%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%7.96%
Revenue Next Year3.61%
Revenue Next 2Y3.8%
Revenue Next 3Y4.2%
Revenue Next 5YN/A
EBIT growth 1Y6.45%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year30.98%
EBIT Next 3Y15%
EBIT Next 5YN/A
FCF growth 1Y21.72%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y20.25%
OCF growth 3Y4.85%
OCF growth 5Y9.04%
CTS CORP / CTS FAQ
What is the ChartMill fundamental rating of CTS CORP (CTS) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CTS.
What is the valuation status of CTS CORP (CTS) stock?
ChartMill assigns a valuation rating of 6 / 10 to CTS CORP (CTS). This can be considered as Fairly Valued.
Can you provide the profitability details for CTS CORP?
CTS CORP (CTS) has a profitability rating of 8 / 10.
What is the expected EPS growth for CTS CORP (CTS) stock?
The Earnings per Share (EPS) of CTS CORP (CTS) is expected to grow by 4.26% in the next year.
How sustainable is the dividend of CTS CORP (CTS) stock?
The dividend rating of CTS CORP (CTS) is 6 / 10 and the dividend payout ratio is 8.09%.