CTS CORP (CTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CTS - US1265011056 - Common Stock
46.05 USD
+0.37 (+0.81%)
46.05 USD
0 (0%)
Taking everything into account, CTS scores 7 out of 10 in our fundamental rating. CTS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CTS a very profitable company, without any liquidiy or solvency issues. CTS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CTS had positive earnings in the past year.
CTS had a positive operating cash flow in the past year.
Of the past 5 years CTS 4 years were profitable.
CTS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CTS has a better Return On Assets (7.49%) than 87.10% of its industry peers.
CTS has a better Return On Equity (10.81%) than 73.39% of its industry peers.
The Return On Invested Capital of CTS (9.58%) is better than 83.06% 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 9.00%.
| 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
CTS has a Profit Margin of 11.14%. This is amongst the best in the industry. CTS outperforms 87.10% of its industry peers.
In the last couple of years the Profit Margin of CTS has grown nicely.
CTS's Operating Margin of 15.25% is amongst the best of the industry. CTS outperforms 87.90% of its industry peers.
CTS's Operating Margin has improved in the last couple of years.
CTS has a Gross Margin of 38.05%. This is in the better half of the industry: CTS outperforms 62.90% 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.
Compared to 1 year ago, CTS has less shares outstanding
Compared to 5 years ago, CTS has less shares outstanding
Compared to 1 year ago, CTS has a worse debt to assets ratio.
2.2 Solvency
CTS has an Altman-Z score of 5.78. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
CTS has a Altman-Z score of 5.78. This is in the better half of the industry: CTS outperforms 75.81% 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.
Looking at the Debt to FCF ratio, with a value of 1.13, CTS belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that CTS is not too dependend on debt financing.
The Debt to Equity ratio of CTS (0.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 5.78 |
ROIC/WACC1.02
WACC9.35%
2.3 Liquidity
A Current Ratio of 2.64 indicates that CTS has no problem at all paying its short term obligations.
CTS's Current ratio of 2.64 is in line compared to the rest of the industry. CTS outperforms 55.65% of its industry peers.
CTS has a Quick Ratio of 2.12. This indicates that CTS is financially healthy and has no problem in meeting its short term obligations.
CTS's Quick ratio of 2.12 is fine compared to the rest of the industry. CTS outperforms 62.10% 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.
The Revenue has been growing slightly by 1.92% on average over the past years.
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
The Earnings Per Share is expected to grow by 6.56% on average over the next years.
CTS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.20% yearly.
EPS Next Y2.86%
EPS Next 2Y-1.14%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of CTS.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 77.42% of the companies listed in the same industry.
CTS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 21.71 indicates a rather expensive valuation of CTS.
Based on the Price/Forward Earnings ratio, CTS is valued a bit cheaper than 67.74% of the companies in the same industry.
CTS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
82.26% of the companies in the same industry are more expensive than CTS, based on the Enterprise Value to EBITDA ratio.
87.10% of the companies in the same industry are more expensive than CTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 11.35 |
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)7.52
PEG (5Y)2.56
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.35%, CTS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.47, CTS pays a better dividend. On top of this CTS pays more dividend than 81.45% of the companies listed in the same industry.
With a Dividend Yield of 0.35, CTS pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of CTS has a limited annual growth rate of 0.16%.
CTS has been paying a dividend for at least 10 years, so it has 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
8.09% of the earnings are spent on dividend by CTS. This is a low number and sustainable payout ratio.
CTS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.09%
EPS Next 2Y-1.14%
EPS Next 3Y6.56%
46.05
+0.37 (+0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change0%
Ins Owners2.27%
Ins Owner Change1.76%
Market Cap1.34B
Revenue(TTM)531.48M
Net Income(TTM)59.19M
Analysts45
Price Target47.94 (4.1%)
Short Float %1.92%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.09%
Div Incr Years0
Div Non Decr Years31
Ex-DateN/A
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)9.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 21.71 | ||
| P/S | 2.52 | ||
| P/FCF | 16.68 | ||
| P/OCF | 13.53 | ||
| P/B | 2.44 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)2.14
EY4.65%
EPS(NY)2.12
Fwd EY4.61%
FCF(TTM)2.76
FCFY6%
OCF(TTM)3.4
OCFY7.39%
SpS18.3
BVpS18.85
TBVpS6.3
PEG (NY)7.52
PEG (5Y)2.56
Graham Number30.13
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 | 5.78 |
F-Score8
WACC9.35%
ROIC/WACC1.02
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 Y2.86%
EPS Next 2Y-1.14%
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 Year36.69%
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.
Can you provide the valuation status for CTS CORP?
ChartMill assigns a valuation rating of 5 / 10 to CTS CORP (CTS). This can be considered as Fairly Valued.
How profitable is CTS CORP (CTS) stock?
CTS CORP (CTS) has a profitability rating of 8 / 10.
Can you provide the financial health for CTS stock?
The financial health rating of CTS CORP (CTS) is 8 / 10.
Can you provide the dividend sustainability for CTS stock?
The dividend rating of CTS CORP (CTS) is 6 / 10 and the dividend payout ratio is 8.09%.