CTS CORP (CTS) Stock Fundamental Analysis
NYSE:CTS - New York Stock Exchange, Inc. - US1265011056 - Common Stock - Currency: USD
Overall CTS gets a fundamental rating of 7 out of 10. We evaluated CTS against 125 industry peers in the Electronic Equipment, Instruments & Components industry. CTS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CTS has a decent growth rate and is not valued too expensively.
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.
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
With an excellent Return On Assets value of 7.89%, CTS belongs to the best of the industry, outperforming 89.60% of the companies in the same industry.
With a decent Return On Equity value of 11.21%, CTS is doing good in the industry, outperforming 79.20% of the companies in the same industry.
CTS has a better Return On Invested Capital (9.56%) than 83.20% 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 9.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 11.21% | ||
| ROIC | 9.56% |
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 better Profit Margin (11.70%) than 88.00% of its industry peers.
In the last couple of years the Profit Margin of CTS has grown nicely.
Looking at the Operating Margin, with a value of 15.39%, CTS belongs to the top of the industry, outperforming 90.40% of the companies in the same industry.
In the last couple of years the Operating Margin of CTS has grown nicely.
CTS's Gross Margin of 37.22% is fine compared to the rest of the industry. CTS outperforms 64.00% of its industry peers.
CTS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.39% | ||
| PM (TTM) | 11.7% | ||
| GM | 37.22% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CTS is still creating some value.
CTS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CTS has been reduced compared to 5 years ago.
The debt/assets ratio for CTS is higher compared to a year ago.
2.2 Solvency
CTS has an Altman-Z score of 5.70. This indicates that CTS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.70, CTS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of CTS is 1.12, which is an excellent value as it means it would take CTS, only 1.12 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.12, CTS belongs to the top of the industry, outperforming 82.40% 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.
The Debt to Equity ratio of CTS (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.12 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.01
WACC9.48%
2.3 Liquidity
A Current Ratio of 2.63 indicates that CTS has no problem at all paying its short term obligations.
The Current ratio of CTS (2.63) is comparable to the rest of the industry.
A Quick Ratio of 2.05 indicates that CTS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.05, CTS is doing good in the industry, outperforming 61.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.38% 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 decrease in Revenue. In the last year, the revenue decreased by -2.71%.
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)3.38%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-6.38%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%0.02%
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 Y2.4%
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
With a Price/Earnings ratio of 19.17, CTS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 80.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, CTS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.85, CTS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CTS indicates a somewhat cheap valuation: CTS is cheaper than 78.40% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, CTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 16.85 |
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 83.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CTS is valued cheaply inside the industry as 87.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.81 | ||
| EV/EBITDA | 10.95 |
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)8
PEG (5Y)2.28
EPS Next 2Y5.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, 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 1.82. CTS pays more dividend than 82.40% of the companies in the same industry.
With a Dividend Yield of 0.38, CTS pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
8.04% of the earnings are spent on dividend by CTS. This is a low number and sustainable payout ratio.
The dividend of CTS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.04%
EPS Next 2Y5.91%
EPS Next 3YN/A
41.02
-0.89 (-2.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners97.73%
Inst Owner Change-0.25%
Ins Owners2.13%
Ins Owner Change4.48%
Market Cap1.22B
Analysts45
Price Target43.86 (6.92%)
Short Float %1.28%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend0.16
Dividend Growth(5Y)0.16%
DP8.04%
Div Incr Years0
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.96%
Min EPS beat(2)-11.09%
Max EPS beat(2)-2.82%
EPS beat(4)2
Avg EPS beat(4)0.76%
Min EPS beat(4)-11.09%
Max EPS beat(4)15.51%
EPS beat(8)5
Avg EPS beat(8)2.28%
EPS beat(12)7
Avg EPS beat(12)1.36%
EPS beat(16)11
Avg EPS beat(16)5.97%
Revenue beat(2)0
Avg Revenue beat(2)-4.13%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)-3.26%
Revenue beat(4)0
Avg Revenue beat(4)-3.16%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)-1.03%
Revenue beat(8)0
Avg Revenue beat(8)-2.89%
Revenue beat(12)3
Avg Revenue beat(12)-2.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.15%
PT rev (1m)0%
PT rev (3m)-8.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.33%
EPS NY rev (1m)0%
EPS NY rev (3m)4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.17 | ||
| Fwd PE | 16.85 | ||
| P/S | 2.37 | ||
| P/FCF | 15.81 | ||
| P/OCF | 12.68 | ||
| P/B | 2.27 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 10.95 |
EPS(TTM)2.14
EY5.22%
EPS(NY)2.43
Fwd EY5.93%
FCF(TTM)2.59
FCFY6.33%
OCF(TTM)3.23
OCFY7.88%
SpS17.29
BVpS18.04
TBVpS5.8
PEG (NY)8
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.89% | ||
| ROE | 11.21% | ||
| ROCE | 11.79% | ||
| ROIC | 9.56% | ||
| ROICexc | 11.04% | ||
| ROICexgc | 29.58% | ||
| OM | 15.39% | ||
| PM (TTM) | 11.7% | ||
| GM | 37.22% | ||
| FCFM | 15.01% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.12 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | 59.44% | ||
| Cap/Sales | 3.7% | ||
| Interest Coverage | 17.44 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | 128.26% | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 5.7 |
F-Score6
WACC9.48%
ROIC/WACC1.01
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)3.38%
EPS 3Y3.98%
EPS 5Y8.4%
EPS Q2Q%-6.38%
EPS Next Y2.4%
EPS Next 2Y5.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y0.18%
Revenue growth 5Y1.92%
Sales Q2Q%0.02%
Revenue Next Year2.32%
Revenue Next 2Y4.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.46%
EBIT growth 3Y-0.29%
EBIT growth 5Y4.86%
EBIT Next Year26.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-20.69%
FCF growth 3Y4.58%
FCF growth 5Y13.56%
OCF growth 1Y-14.68%
OCF growth 3Y4.85%
OCF growth 5Y9.04%